Why Most Strategic Alliances Fail To Become Partnerships

By Michael Cummings of SAGE PDI, Incmcummings@sageprofessional.com 32-543-7617

SAGE PDI, Inc.We work as interim executives and project managers with your internal team• Strategic market plans – grow existing business, launch new

products or lines of business• Opportunity assessments leveraging customer, competitive and

market insights• Building strategic partnerships• Offering creation and value proposition development workshops• Go to market business designs, channel strategy and programs• Sales process enablement and training• Project management of marketing, sales and go to market

initiatives• Go to market workshops• Executive coaching• Building the sales skills of technical employees, professionals and

“non-sales” people

Why most alliances fail to become true strategic partnerships

• For many fast growing technology companies, accelerating their growth trajectory requires GTM partnerships with industry leading systems integrators (Accenture)

• Most fail …. Recent examples with IBM and Accenture• Why do they fail?• Structured as some form of vendor and channel relationship• Emphasize investments, plans and programs rather than joint

business model and early sales• Little entrepreneurial force • Sales teams spin and conflict at the account level• Pipeline expectations are not aligned • No scaling plan

How do alliances become true strategic partnerships

• What does it take to succeed:1. It is all about deal pipeline for both sides, especially early stage

success and ramp up2. Leaders from both sides have to be prepared to be heroic until

the business scales – the first sales will be built of their blood, sweat and tears

3. Early deals will be built on the personal network of the leaders 4. Both sides must see themselves as a single business model that

they operate together (partners in business rather than a vendor and sales channel)

5. Success or failure will be determine by the joint sales model at the account level and the joint pipeline sales management system

6. Funding is the true measure of commitment

Steps To Building Strategic Partnerships

1. Strategic Fit2. Go To Market Alignment and Validation3. Demand Generation, Sales Scenarios and Account Level

Execution4. Joint Business Model Blueprint5. Program Design and Sales Enablement6. Program Management and Governance

Building Strategic Partnerships• Agreement on the opportunity size, revenue , share and deal size expectations• Explicit definition of target customers , buying center coverage model and

relationship “ownership”• Average deal yields sufficient profit stacking• Solution design/Joint offering clearly delineated , integrated and complimentary

(with little overlap/contention)• Competitive partnerships rationalized with

StrategicNeed/fit

GTM AlignmentAnd Validation

Demand creation , Sales Scenarios and Account Level Engagement

• Roles/expectations in terms of lead generation, opportunity management, proposing/closing, delivery and service/support

• List of top x target customers identified• Customer value proposition/ “whole offer” defined and tested with customer and

sales teams• Sales leadership engaged and supportive (Down to regional level) -- • Frameworks of Commercials T&C’s agreed to

• 30/60/90 list of target customers and prospects identified• Joint lead generation plan defined and funded/resourced adequately for both sides• Sales process mapped and pressure tested with process , capabilities, shared rules

of engagement and “pain points” identified• Partnership potential confirmed through 1-5+ joint account team working sessions

Building Strategic Partnerships• Offer Development Plan• Complete Joint Organization Design (Capabilities, Skills)• Map Out The Joint Engagement and Delivery Model• Finalize Commercial Models

Partnership Business Design

Blueprint

Program DesignAnd Sales

Enablement

Program Management

And Governance

•Finalize and Approve Budget/resourcing/manpower• Set Margins/coop funding levels•Complete Sales Playbook•Develop Joint Field Training/Enablement (live, on-line)•Build Joint Marketing Plan (see next page) •Conduct Operational Readiness•Create Roll Out Plan

• Establish Joint Sales Management Team and “Tiger Team” Support• Establish Governance Board and Management System• Build Joint Pipeline and Sales Management Tracking Systems• Staying power

Michael G. CummingsVeteran revenue growth expert with 25+ years of results in all aspects of strategic marketing, market research, sales force structuring and enablement, channel programs, integrated marketing communications and business development. Proven track record as executive leader, management consultant and entrepreneur. Accomplished at consistently building and growing client relationships in both consulting and business development roles. Co-led, built and managed headquarters marketing and business development functions for global professional services, systems integration and technology firm. Pragmatic and execution driven strategist. In-depth knowledge of technology, systems integration/outsourcing, cloud/Saas, industrial solutions, BtoB manufacturing and professional services market. Excel at consulting on all aspects of go to market business model and the sales process. Superb project manager that can deliver and oversee complex projects. SAGE PDI, INC., Chicago, IL Managing Director, 2005-Present; 1990-1994Enabled clients to enter, grow or reinvent business models and go to market capabilities. Sold and managed relationships with industry leading technology, software, telecommunications and cloud computing companies, as well as top systems integrators. Delivered marketing and customer research insights, defined business model capabilities, built marketing strategies, designed marketing communications programs, managed strategic partnerships and channel programs and provided business cases. Consulted with senior executives at industry-leading businesses, improving marketing strategy and delivering growth for Cisco, Accenture, Big Four firms, SAP, AT&T, Siemens, and Motorola.Built second line of business that trained professionals to develop business and manage relationships. Delivered to top systems integrators, accounting firms, law firms and engineering companies. Consulted Big 4 systems integrators on the sales process, capabilities, support and proposal effectiveness.

Key Accomplishments:• Built ongoing relationships with over 20 clients ; • Facilitated and led internal client teams to devise growth strategies and plans for over 15 different lines of business – and drove

substantial revenue growth for clients through new product launch or marketing strategy/program design.; • Conducted business development training with top systems integrators (Big 4), accounting firms (top 20) and law firms (top20) –

driving 2-3X improvements in business development performance• Act as project leader, expert facilitator, market research expert, business model analyst and partner with internal team members

Michael G. CummingsCISCO SYSTEMS, San Jose Go To Market Business Design Consultant, 2010-2013Served as interim executive (dedicated) with Cisco Global Cloud Business Development Group and Strategic Partner Organization. Built transformational business alliances and new joint sales capability globally with Accenture, CSC and SAP. Worked as team to define Cisco got to market business model, design joint offerings, build the joint capability, pursue and propose on joint deals, establish sales management and governance system and develop the execution plan.

Key Accomplishments:• Re-invented and designed new partnering model between Cisco and Accenture leading to a $ 600 mil+ partnership.• Spearheaded innovations required for the cloud business, which resulted in a new go to market model and dramatic increase in

investment, programs, joint offers, sales pipelines, and business wins.• Worked on global team to forge tri-party partnerships for Accenture, Cisco, and leading telecommunications clients to enter the

cloud business together and jointly drive demand.• Drove customer demand through implementation of go-to market model.

MERCER MANAGEMENT CONSULTING, Chicago, IL Principal, 1995-2003Partner in leading business design consulting firm, delivering rapid customer, market, competitive and channel and business model insights. Responsible for new business development, managing client relationships, and delivering business design innovation in communication, information, and industrial business-to-business arenas. Work spanned across all IBM lines of business, including: services, application outsourcing software, hardware, network, storage, printing, channels, sales/distribution, corporate strategy, and ISV relationships.Key Accomplishments:• One of the leaders of the client account team for relationship between Mercer and IBM (firm’s largest client for over 5 years).

Michael G. Cummings• ]management processes for industry groups and the consulting practice.

Key Accomplishments:• Promoted from new employee to manager in 3 years• As manager, responsible for $ 100 M budget and 50 employees• Worked directly with firm leaders, industry program heads, practice group leaders, and office managing partners to develop

strategies and global marketing programs.• Successfully grew service lines, developed client relationships and positioned firm capabilities.• Developed full set of innovative methodologies and global training, including: service line planning, marketing program

development, strategic account development, and individual business development skills.