The Collaboration Advantage - Customer Focused Partnerships in a Global Economy
In the global economy, the nature of business relationships is changing rapidly. Executives at companies of all sizes are beginning to realise the need to collaborate and partner more frequentlywith suppliers, customers and alliance groups—and even competitors—to launch new products, innovatemore quickly, lower costs and improve overall customer service. The goal is to develop a network ofsuppliers and corporate partners that is mutually rewarding and transcends traditional business agreements, which were based largely on price negotiation.
VST Skills -
Communicating your alliance intentions to: your chosen partners, your competitors, non partners, consumers and market analysts is crucial to success. Research suggests that organisations that have a well thought through external communication strategy see their share price rise accordingly.
Search Terms: O43, O43 Communication, External Communication Programme, Communication Template.
Alliance Best Practice Framework - Read This First!
READ THIS FIRST!
This document identifies the 52 Common Succcess Factors that lie at the heart of the ABP Framework. More importantly it identifies how you can use the CSFs to optimise your alliances.
Search Terms: CSFs, CSF, Common Success Factors, Critical Success Factors, Help, Framework, Start, Start Here, Read This First, Optimisation.
An Excel template showing the most appropriate questions to ask regarding governance and direction in a strtegic alliance.
Search Terms: O45, MOUP, Memorandum of Understanding and Principles, Questionaire, Tools,Â tools, tool, Tool
Initiating a Strategic Alliance using an MOUP Workshop
A document showing how to initiate a strtegic alliance relationship using an MOUP document
Search Terms: O45, MOUP, Starting, Initiating, Kick Off, Launch, Memorandum of Understanding and Principles, Tools, tools, tool, Tool
Reviewing a Strategic Alliance using an MOUP Workshop
A document explaining how to conduct an alliance review using an MOUP Workshop approach.
Search Terms: O45, O44, Healthcheck, Helth check, review, Memorandum of Understanding and Principles, Tools, tools, toolÂ
A combination of documents comprising a comprehensive briefing pack on the: concept, process andÂ production of an MOUP (Memorandum of Understanding and Principles).
Search Terms: O45, MOUP, memorandum of Understanding and Principles, Tools, tools, Tool, tool
An excel template explaining how to capture and measure the identified Alliance Best Practice Common Success Factors.
Search Items: CO5, O47, CSF, csf, Common Success Factors, Diagnostic, questionaire, scoring, metrics
ABP Template Relationship Optimisation Report for two Partners
A template Powerpoint slide deck showing an example layout for outputing the analysis from a relationship optimisation programme.
Search Terms, Process, Relationship Optimisation Process, Tools, Tool, tools, tool,
Despite years of processbreakthroughs and elegant technology solutions, an agile,adaptive supply chain remains an elusive goal.Â Maybe itâ€™s the people who are getting in the way.
Search Terms: Harvard, Supply Chain, William Copacino, Chris Gopal, Hau L. Lee, Robert Porter Lynch, and Sandra Morris
A Primer for Building Alliances between Independent Software Vendors and Information Technology (IT) Giants like IBM, HP, SAP, Oracle and Microsoft.Â Author Unknown.
Search Terms: IBM, ISV, Building Alliances, Independant Software vendors.
A White Paper by Stuart Kliman and Laura Visioni of Vantage Partners
Business leaders face 2009 knowing that the currentglobal recession is likely to get worse before it gets better.Â Companies are cutting back, scrutinizing every expense,and looking to only take the wisest risks. Even withlending rates cut to their lowest levels in recent history,experts predict that "the once-humming U.S. economycould stagger backward at a shocking six percent rate forthe current three-month quarter."
In this environment of scarce resources, alliances canand will play an essential role by enabling companiesto achieve their goals without making expensive acquisitions or internal investments. Nevertheless, allianceprofessionals should expect the scrutiny of the executivesuite and prepare to take action based on asking and answering three categories of questions aimed at helpingtheir companies cut costs, enhance performance, and findcreative ways to thrive in a contracting and increasingly competitive global economy:
Search Terms: Recession,
This report presents the results of the Third State of Alliance Management Study, carried out on behalf of theAssociation of Strategic Alliance Professionals. In January and February 2009 over 400 companies respondedto our survey on alliance management. Our previous studies, carried out in 2002 and 2007, have provided a wealth of new insights into the development of alliance management as a profession. Between the first twostudies, alliance management developed rapidly. The red line of this third study is that alliance management has come of age.
Authors: Geert Duysters and Ard-Pieter de Man
Search Terms: ASAP, Duysters, de man, alliance research
Strategic Alliances :Three Ways to Make Them Work by Steve Steinhilber of Cisco.Â MEMO TO THE CEO - Harvard Business Press, Boston, Massachusetts.
This memo is about how enduring and mutually beneficial global business relationships help youcreate the leverage you need to compete. Itâ€™s ultimately about the right way to partner.Â Building alliances right requires several ingredients: partnerships play an integral part of yourcompanyâ€™s strategy, you have a repeatable and sustainable process, and youâ€™re building both the necessary competencies and reputation for success.
Search Terms: Cisco, Steve, Steinhilber, book reviews, books, alliance books
A great article on why sponsorships should be regarded as ongoing strategic alliance relationships.
Abstract : In recent years, academics and practitioners have recognized that sponsorship relationships operate as strategic alliances. Additionally, they have emphasized the lack of analytical approaches which allow an understanding of the developmental process of such alliances. In an attempt to fill this gap, we examine how key sponsorship characteristics change over different stages of the life cycle (formation, operation, and outcome) to determine the success or failure of the relationship. Specifically, we propose a life cycle model that articulates general paths in sponsorship relationship developmental stages and the behavior pattern of sponsorship characteristics. Throughout this framework, we illustrate our reasoning with examples drawn from the UBS/Team Alinghi sponsorship relationship.
Lourdes Urriolagoitia and, Marcel Planellas - ESADE Business School, Ramon Llull University, Av. Pedralbes 60â€“62, 08034, Barcelona, Spain
The Collaborate to Innovate study, conducted by the Business Performance Management (BPM) Forum and the Chief Marketing Officer (CMO) Council, takes a new look at the state of business collaboration in the early 21st Century. Our findings make it abundantly clear that cross-company collaboration is more vital, complex and global than ever before. Many executives now see improved connections across business partners and customers as critical to their competitive position. It is not simply a matter of driving cost efficiency through the use of low-cost suppliers or extending the reach of their sales capabilities through domestic and overseas distributors and resellers. Integration and collaboration across extended networks of partners is impacting core customer value and experience, and the capacity to innovate across processes, products, services.The study also demonstrates, however, that most companies are struggling to optimize their collaborations with partners and almost universally believe there is a significant deficiency in the way they integrate information exchange and processes across their partnersâ€™ networks.
Sponsored by Sterling Commerce and AT&T, Collaborate to Innovate is based on an in-depth survey of more than 400 executives and managers whose companies do business around the world. Some 36 percent of respondents represent companies with revenues of more than $1billion. In addition to our quantitative survey, we conducted 23 qualitative discussions with leading academic experts and executives with major global corporations who are deeply involved in supply-side and demand-side value chain partnership management and development.
In distressed economic times, enterprises are looking to collaborate, connect and innovate in environments that, while global in reach, may be constrained in resources, infrastructure or budget. This challenge is intensified as small, nimble and agile organizations are looking to proactively speed go-to-market engagements and prepare for rapid deployment in order to take advantage of market opportunities. A key challenge for the â€œmid-marketâ€ is enabling their teams to seize opportunities in this new digitally enabled era, while presenting unified messaging across the entire customer experience. This is when the agile marketer looking to jump out of the box and move at the speed of digital business.
Todayâ€™s nimble marketer must develop customer-driven business process through greater understanding of customer engagement, customer experience, customer acquisition, customer retention, loyalty, advocacy, customer insight, and customer messaging and creative content. Technologies and tools that help marketers optimize process and eliminate inefficiencies help boost the â€œbottom lineâ€ of customer value and acquisition and retention costs.
This paper shines a spotlight on how global enterprises are â€˜Activating Agilityâ€™ by looking beyond home-grown or single point solutions and instead, enabling collaboration, unification and activation of customer engagements.
Why are some companies more successful with alliances than others?
Because some companies have built up an alliance capability. They have invested tools, skills and processes that support alliance management. But they also have something else. They have a culture that is supportive of collaboration.
One of the biggest long term challenges for alliance professionals is fostering collaborative capability throughout their organizations. Despite much attention to the matter of collaborative culture, there is very little research defining the specific elements of a culture that is supportive of partnering effectively. The researchers and authors of this study set out to define the attributes of an Alliance Culture and a model to measure it. This research fills an important gap in understanding how culture contributes to alliance success and provides insight to alliance managers on how to foster better collaboration.
Ard-Pieter de Man, Professor of Management Studies at the VU University Amsterdam and Principal Consultant at Atos Consultant
Dave Luvison, Professor at the Keller Graduate School of Management of DeVry University
Strategic alliances are now being seen by many organisations as a cost-effective way to grow business quickly with little need for additional resources. Mike Nevin reports on new research which suggests that identifying and implementing best practice programmes might help overcome this major challenge.
The Alliance Sales Methodology (ASM) from Alliance Best Practice is an open, non proprietary, comprehensive, simple yet robust description of a best practice process for generating more alliance sales. The ASM contains full descriptions of each stage of the alliance sales process including: 1. Develop the relationship vision and strategies for execution. 2. Develop the skills necessary for both sides to actively sell the others products and services. and 3. Grow the Trust in the relationship as a precursor to relationship growth. The ASM contains full details of all deliverables and tools employed in the process. The Methodology is available in full to PREMIUM MEMBERS. Search Words: ASM, Alliance Sales Methodology, Methodology,
In response to todayâ€™s fresh set of challenges, procurement executives are looking for new ways in which procurement can help build shareholder value. Accentureâ€™s research and experience suggests that many procurement organizations are already finding new ways to add value and contribute to growth. Accenture believes that integrating four key areas of focus into a single program will take procurement to the next level, unleashing a new wave of procurement-driven growth.
MOUP Template for Go To Market (GTM) Alliances
This document has been produced as a guide to help newly appointed alliance executives to develop a meaningful vision (goals, objectives, template, blueprint, etc.) for the alliance relationship/s for which they are responsible. The document will also help alliance executives to think through many of the questions that need to be answered to be able to develop successful strategies to execute the chosen vision.
Influencing the Key to Successful Business relationships
In business, a high proportion of your working day is spent relating to other people â€“ as a leader you need to focus as much on communicating, creating and developing effective working relationships, as you do on the functional aspects of your job. Fiona Dent and Mike Brent describe a range of tools and techniques to make you more effective in this crucial skill of influencing. First appeared in the Spring Edition of the Ashridge Journal Reproduced here with permission from Ashridge Business School
This is an example of an alliance scorecard developed for both HP and IBM in Europe in 2011. There are many other examples of scorecards in the ABP database. If you'd like a full list simply contact us at email@example.com
This white paper is based on research conducted by Alliance Best Practice (ABP) originally started in 2002 which is ongoing to this day. So far over 600 organisations have contributed to the research which is ongoing. (For a complete list of contributing organisations and research reviewers see Appendices). The ABP database of findings from the research currently contains over 200,000 entries from organisations in multiple sectors. In each case at least three key stakeholders were interviewed in detail, these stakeholders were;Strategic, Managerial, and Operational. The result is a definitive examination of the common success factors in strategic alliances. Evidence from the ABP database shows that by paying attention to and enhancing the these success factors organisations can significantly improve their alliance relationship success. In addition the identification of common success factors is crucial in building effective alliance scorecards.
Alliance Management Salary Review and Benchmark 2012
This report is the result of an extensive review of alliance management remuneration packages conducted by Alliance Best Practice in January and February 2012. 38 Individuals completed the following 23 survey questions: 1. What is your Job Title? 2. Do you have any direct reports? 3. If 'yes' how many? 4. Do you personally carry an alliance sales quota or target? 5. If 'yes' what is the target figure? 6. What is your basic salary? 7. How is your reward package constructed? 8. What is your bonus measured as a % of basic salary? 9. Are you part of a formal pension scheme? 10. Do you receive a car allowance? (Please indicate the nature of the scheme) 11. Do you receive any insurance cover as part of your job? (e.g. Private medical health cover, Life Insurance, Key Man insurance, etc.). 12. Do you receive any other benefits? (If so could you please specify type and amount). 13. Does your organisation use an external consultancy to benchmark alliance salaries? 14. If 'yes' which company does it use? 15. What country are you resident in? 16. What country is your Head Office Resident in? 17. What Sector do you work in? (e.g. High Tech Software, Hardware, Services, Telecommunications, Other)? 18. What is the size of your company measured in staff numbers? 19. What is the size of your company measured in gross turnover per annum? 20. At what level of seniority do you operate in your company? (e.g. Level x of y Levels) 21. Do you have a formal job description? 22. If 'yes' was it internally or externally generated? (e.g. Internal or external consultants). 23. Is your role centrally based (i.e. corporate) or country based?
Every two years IBM conducts an extensive study of CEO views worldwide. This year 1700 CEOs were interviewed. See their responses and the IBM analysis here. The key conclusion? We live in a connected world: economic, political, business, technology, etc. Consequently the ability to collaborate is crucial and a key competitive differentiator.
White paper produced by The TAS Group highlighting the challenges faced by Enterprise level partnering, the benefits of good partner alignment and a look at how to execute partnering strategies effectively.
Partially filled template of a report highlighting which stage of the VST process each partner is at and what the required next actions are. Also contains a detailed breakdown of each task in the VST process.
A summary of an award winning alliance book by Edwin Kaats and Wilfrid Opheij This book won the business book of the year in the Netherlands 2013 and it deals exclusively with issues around business to business collaboration. Well worth a read!
VST Trust - Identity Compass is a diagnostic tool that reveals key characteristics of individuals, teams and company cultures. It is used to identify and improve cultural alignment in strategic alliance relationships.
S21 Developing the scope for a VST Alliance Optimisation exercise
Scope is a crucial start point in any alliance optimisation exercise. Clarity around scope allows us to identify the right key stakeholders who can give us the correct information from three crucial perspectives: Strategic, Managerial and Operational. That in turn allows us to make good improvement decisions based on good information. This short slide deck introduces the VST user to a range of questions and considerations necessary in the formulation of an ambitious yet achievable scope statement.
In a previous era, it was possible for a CIO to confine almost all of the technology operations of his company within the walls of a data center that was directly managed, and likely owned, by that company.
But today, the data center is just one component of the hybrid cloud, an architecture that combines elements of private clouds, public clouds, and on-premise data centers. Enterprises are increasingly choosing this cloud architecture in order to maximize the performance of mission-critical applications, which benefit from the security and reliability of the private cloud and on-premise data centers, as well as the scalability and flexibility of the public cloud. The hybrid cloud helps companies manage the processing of applications from big data to payroll, service mobile and fixed users, and speed content to its consumers.
Determining what goes where in a hybrid cloud and how everything fits together is a prime new focus for CIOs. CIOs will have to develop new skills to employ the hybrid cloud and its new technologies, but the results will be well worth the effort as the hybrid cloud provides new levels of business agility and an ability to say “yes” more often. This CITO Research white paper examines hybrid cloud design challenges and provides advice about how to build and optimize for such clouds.
How collaboration technologies are improving process, workforce and business performance
A recent survey report from Accenture points to the role that collaborative technologies can play in both internal and external team collaboration.
Companies need their critical workforces to perform smarter, faster and more productively. Achieving that goal requires embedding collaborative technologies deep into processes and incentivizing collaborative behaviours— ultimately transforming the way organisations turn knowledge into action. Collaboration platforms should do more than help employees talk about their work; they should create new ways for employees to do their work.
Culture As a Force Field - Understanding Human Behaviour
Over again leaders of collaborative organizations emphasize the critical importance of “culture.” Yet advocates are far less articulate when it comes to being lucid about how and why culture is so important. In this article Robert Porter Lynch of the Warren company expands this understanding, moving from an intuitive sense to substantive clarity.
Culture is somewhat a mystery because a cluster of hidden forces are almost always at play -- invisible and thus seldom ever acknowledged – but they are the first cause of failure or success when any leader tries to improve an organization’s performance or change its direction.
If you would like to contact the author you can at: RobertLynch@warrenco.com
Strategic Alliances in Life Sciences - Are You Ready?
Life Science companies have adopted a multi-track approach to cope with the current and anticipated drop in sales revenue, including; cutting costs and staff, expanding business in emerging markets, , re-calibrating business models, and research priorities ; using real world evidence and emphasizing a product's clinical, safety and economic impact to articulate their value proposition. Next to classic mergers and acquisitions (M&A) Strategic Alliances have proven to be a viable alternative in coping with these challenges.
This short briefing deck has been produced to assist VST Licence holders to conduct their own VST Alliance Initiation Exercises.
There are six stages in the VST methodology and each stage has a given output. The initiation exercise covers stages 1-3 Examples of the outputs from each stage are included in this pack under the section: ‘Useful Templates’.
This pack is designed to be an overview of the process. Further details are available from a wide range of supporting documentation. See Section ‘Further Supporting Documentation’.
Finally if you have any further questions regarding the VST Methodology you can get further help either by contacting us directly at firstname.lastname@example.org or by accessing the “Downloads’ Section of the Alliance best practice website at www.alliancebestpractice.com/downloads.
Search Terms: VST, Stage 1, "Vision Skills Trust"
Effective Collaboration White Paper by Jeff Weiss and Jonathan Hughes of Vantage Partners
The quest for harmony and common goals can actually obstruct teamwork. Managers get truly effective collaboration only when they realize that conflict is natural and necessary. So argue Jeff Weis and Jonathan Hughes of vantage Partners. A thoughtful Harvard Business Review (HBR) article
Protecting the enterprise with cybersecure IT architecture
As digitization creates new cyberthreats, businesses should make security an integrated part of their IT infrastructure. So argues McKinsey experts Oliver Bossert, Wolf Richter, and Allen Weinberg in this thought provoking article.
Where is Due Diligence Due in Strategic Alliances?
Choosing the ‘right’ partner is critical to long-term alliance success, however partner evaluation due-diligence is undertaken within constraints…
An independent research project aimed at improving strategic alliance due diligence effectiveness
Strategic alliances have become an essential business strategy and now account for 40% of all business in developed markets1 ….but they frequently fail to live up to expectations wasting valuable time and effort, and causing financial, operational and reputational damage and loss of other opportunities.
Partner selection is fundamental to achieving alliance success, with even the best alliance management unlikely to overcome poor partner selection ….but due-diligence, the enquiry exercise upon which alliance formation decisions are made, is limited by time, resource, competitive and financial constraints.
Partner selection literature provides abundant advice on specific partner selection criteria which should be evaluated to improve alliance outcomes (e.g. trust, complementarity, culture, commercial benefit etc.) … however there is scant research exploring the relative importance of these selection criteria or an organisation’s ability to effectively evaluate these success factors.
Long gone are the days when strategic alliances were formed over many years between large multi national enterprises that diminated their respective sectors. Today speed, agility, innovation, and easy of engagement are the key requisites for a new breed of of strtegic alliances. ABP has dubbed these particular types 'Agile Alliances' and there is a growing body of research showing that these disruptive partnerships are shaking up established industries and generating exponential value for the participants. Read how in this ABP briefing paper.
76% of business leaders surveyed agree current business models will be unrecognizable in the next 5 years—ecosystems will be the main change agent
What is as an ecosystem?
An ecosystem is the network of cross-industry players who work together to define, build and execute market-creating customer and consumer solutions.
The power of the ecosystem is that no single player need own or operate all components of the solution, and that the value the ecosystem generates is larger than the combined value each of the players could contribute individually.
Ecosystems create strong barriers to entry for new competition, new entrants must compete against the entire system of independent complementing businesses.
How do you Participate in an ecosystem?
You need to identify your role, are you providing:-
An offering, a platform, a market play?
You need to identify the right partners who will allow you to successfully collaborate outside of your sphere.
However, executives often don’t have the experience and capabilities to design and execute market-leading ecosystems. As such, many aren’t seeing the revenue growth they had predicted.