the secret sauce for successful collaborations
Post on 21-Oct-2014
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Partnering and building alliances is the preferred model of business growth for many CEO’s. In a recent survey, 70% of CEOs plan to partner extensively and indeed the top performers among those CEO’s do just that. Partnering leverages the expertise, resources, and talent beyond the walls of a single organization. Yet many companies lack the fundamental skills, capabilities and leadership to collaborate effectively. We have found in our practice that successful collaborative business relationships are built upon four crucial ingredients.TRANSCRIPT
The Secret Sauce for Successful
Collaboration
Norma WatenpaughPrincipal, Phoenix Consulting Group
Global Board, ASAP
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Dutch Tulip Growers who collaborated the most – were the most successful
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WINNERS COLLABORATE
70% CEO’s intend to partner more extensively -
Out performers out partner by 28%
IBM Survey 2012 1700 CEO’s in 64 countries
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COLLABORATION IN THE SKILLS GAP
#1 trait CEOS look for in employees; 70% citing it as crucial
#2 fatal flaw in CEOSHbr.com2014
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04/07/2023The Secret Sauce for Successful Collaboration
Reasons to Partner
New Product DevelopmentIn-Source InnovationAccess to IP/ExpertiseTransform IndustriesDisruptive Business Models
Expand into new MarketsIncrease Customer SatisfactionCompetitive AdvantageGeographic ExpansionCo-Branding
Logistic EfficienciesReduce Time to MarketLeverage Shared ResourcesCost ReductionRisk Mitigation
Innovation Growth Efficiency
What is a Partner?
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Trans-action Out-sourcing ChannelOEM or
LicensingContract Alliances
Virtual Joint
Venture
Joint Venture M & A
Degree of Collaboration
A collaborative business relationship between two or more entities that share assets, expertise, risks, rewards, and control to create greater value for their customers and for their own organizations than could be efficiently accomplished independently.
Crucial Ingredients
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Champion
Culture
CompetencyCapability
SUCCESS BEGINS AT THE TOP
STRONG EXECUTIVE SPONSORSHIP IS CRUCIAL
• Sets the Strategic Vision
• Advocates the Value
• Fosters a Culture for Collaboration
• Last Stop in Escalation
• Organizational Navigator
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Partner Lifecycle FrameworkBuilds Enabling Business Processes
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Partner Life Cycle
Alliance-Specific Strategy
Analysis & Selection
Building Trust & Value
Operational Planning
Alliance Structuring & Governance
Launching & Managing
TransformInnovate
Exit
Source: ASAP Handbook of Alliance Management
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Strategies and Techniques for Alignment
Sta
keh
old
er M
app
ing
All
ian
ce T
eam
Ch
arte
r
Exe
cuti
ve S
po
nso
r
Corporate Strategy
Alliance Strategy
Alliance Value Prop
Operational Plan
Individual - Roles, Responsibilities, Motivations, Rewards
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Innovative Business Model Lilly Partnership for MDR - Tuberculosis Defining the Challenge: Patient Compliance and Prevention Creates a different ecosystem than just ‘cheap drugs”
Treatment, Training &
Surveillance
Community Support
Patient Advocacy
Workplace Awareness & Prevention
Transfer of Technology & Drug Supply
Int’l Council of Nurses, WHO, World Medical Assoc. US Disease Control and Prevention
Red Cross, Red Crescent
TB Alert, TB Survival Project
World Economic Forum, Business Alliance to Stop TB
Aspen Pharmacare, SIA Int’l, Purdue University
Patient
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WIN/WIN/WIN PartnershipsPartner Math: 1 + 1 > 3 How do you benefit from the partnership?
How does your partner benefit?
How does the partnership create greater customer value?
What is the likely result if one of the value propositions is weak?
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Best Practice Guidance:Three-way value propositions are the foundation of sustainable partnerships
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PARTNER BUSINESS MODEL DRIVES FINANCIAL VALUE – SOLUTION PROVIDER EXAMPLE
Revenue Source Basis Revenue Recognized
Product Resale Margin or Referral Fee
10% of ASP* $50,000 $5,000
Cross Sell Opportunities 10% of ASP $5,000
Customer Training 20% of ASP $10,000
Implementation Services 100% of ASP $50,000
Consulting Services 300% of ASP $150,000
TOTAL $220,000
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* Average Selling Price
Alliance Team Charter When everyone is on the same page -
This is the page
Sets up the common vision for the alliance/initiative
Joint team activity- People support what they create
Sets expectations and builds trust
Sets standards for behavior through operating principles
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Alliance Core Values/Operating Principles Govern How the Team Works Together and Shapes the Alliance Culture
1. Focus: On the customer and creating superior added-value 2. Commitments: Meet commitments and milestones on time 3. Communications: Open, honest, proactive and timely 4. Changes: Notify quickly & honestly 5. Decision Making: Quickly, team ownership, based on rational risks 6. Champions: Stay ahead of things, sustain momentum 7. Relationships: Build solid, long-term relationships based on trust 8. Problems: Address problems before escalation, fix quickly 9. Ethics: Promote Environmental Responsibility and Business Ethics 10. Support: Help each other out when necessary 11. Spirit: Create opportunities for growth & breakthroughs 12. Flexibility: Change with the times and new pressures
Source: Rolls-Royce Starfish Alliance
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Stakeholder AlignmentHow does behavior change with commitment and accountability?
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Competency for Collaboration
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- Conflict Resolution- Cross Function
Team Management- Influencing Others- Leading without
Authority-- Problem Solving &
Critical Thinking-Cultural Sensitivity
- Strategic Alignment
- Selection & Qualification- Governance
- Metrics- Alliance
Negotiations- Co-opetition
- Fostering Collaboration
- Industry Trends- Business Strategy
-Marketing Processes
-Sales Processes-Change
Management
-Lead & Influence -Take Initiative
w/Little Supervision-Strategic/Global
Thinkers-Network across Org Boundaries
-Flexible-Innovative/ Resourceful
People Oriented
Soft Skills Business Knowledge
Core Skills Aptitudes
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Influences on Culture
Culture
Leadership
Processes
Norms & Values
Behaviors
Control Structures
Influencers
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WHAT IS A CULTURE FOR COLLABORATION
Win-Win Attitude Empathy Diversity is the source of
Innovation Confrontation is the starting
point for Collaboration Flexibility Commitment Lead with Trust
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04/07/2023The Secret Sauce for Successful Collaboration
“In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
Charles Darwin
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Go Forth and Partner
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and Prosper!
We specialize in best practice partner strategies, programs, and marketing. We help companies transform their partnering practices to drive corporate growth, innovation and build shareholder value.
Companies we have served:
www.phoenixcg.com ph:1 408 848 9514 email: [email protected]
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