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“We Need Partners—Fast!” Leveraging Partnerships to Respond to Paradigm Shifts

Posted By Michael J. Burke, Friday, November 15, 2019

For old established companies, responding and adapting to market changes and shifts in technology and consumer buying behavior can be especially difficult. When the old ways of doing business no longer bring in the revenue they once did and the once-revered firm struggles to maintain its top market position, entrenched internal processes and stagnant thinking can lead to a steady decline—or worse, an “extinction event” that topples the old behemoth.

            That might have been the case for Philips Lighting, which was spun off by Philips in 2016 with a new name, Signify (but still uses Philips branding for hardware products). Philips began its life in 1891 as Royal Philips, and was a market leader in lighting for at least a century thereafter. According to Ivo Rutten, vice president and head of global strategic alliances for Signify, the history of lighting amounted to approximately “110 years of tranquility followed by four major paradigm shifts in two decades.” He made these and other observations as part of his keynote address on the second and final day of the ASAP European Alliance Summit held Nov. 14–15 in Amsterdam.

            He even went so far as to compare these paradigm shifts to “the meteors that killed the dinosaurs.” The four paradigm shifts were the advent of LED lighting, lighting systems, services centered around lighting, and “light as a language,” involving the increasing use of Internet of Things (IoT) technologies.

            A company whose main business was ordinary consumer lighting found that this line of business was no longer so important. “Everything the company was based on was wiped away,” Rutten acknowledged. So in order to deal with these successive meteor strikes—and not to end up as dead as the poor dinosaurs—Signify realized that it “needed partners—fast.”

            And it was all very well to develop new lighting systems, services, and IoT applications and move into B2B. But to get businesses to buy and install them? IT managers at companies would say, “Philips? In my network? No way. I’ll be hacked.” Philips/Signify had no credibility in this area, so it had to seek out partners that would help it gain entry.

            A big one was and is Cisco, which could help with its own reputation in IT to pave the way. Now Signify could say, “You won’t be hacked—just ask Cisco,” Rutten said. Cisco’s credibility in network hardware and Signify’s lighting expertise combined to make a unique and appealing value proposition.

            But in order to partner effectively, Signify had to learn and develop a number of partnering best practices. Among the most important, according to Rutten:

  • Establishing clear objectives for the alliance—e.g., additional growth, alliance-attributable revenue, access to a channel, improved technology
  • Ensuring alignment in both companies, or as Rutten said, “Nail it tight”
  • Set up rigorous processes to run the alliance
  • Get “everyone on the bus” by incentivizing the sales force

Added to these must-haves, Rutten said, were a number of key insights, including:

  • An alliance is not necessarily a “regular business relationship” and may be relatively nontransactional
  • There should be a combined value proposition
  • Both companies must benefit beyond normal business returns
  • The financial impact—and the risk—may go well beyond normal business
  • Partners need to be continually aligned and realigned—which means explaining and re-explaining the what, why, and how of the alliance, internally and externally
  • The alliance should have similar importance to both parties
  • Local sales forces in both companies should become self-motivating

Although not purely transactional, it’s a reality that in an alliance each party must give and get, or as Rutten said, “Their contribution must match our needs.” He noted the importance of creating a balanced first-draft term sheet—“our end and your end”—and putting it in front of the partner before moving on to a dialogue and working out differences, aligning objectives, etc.

            As in other companies, the governance structure of significant alliances involves three tiers: day-to-day alliance management, decision making by a joint steering committee, and C-level interaction by the heads of both companies.

            Such principles and practices are important enough in a one-to-one alliance, such as with Cisco, but even more so when multiple partners are involved, as in the Philips HUE ecosystem, which blends security, lighting automation, the setting of events, tasks, and routines at home, a user-friendly interface that responds to voice or phone commands, and full integration into a smart home.

            To make HUE operational, an ecosystem was needed, involving many partners including Apple, Amazon, Nest, and Bosch, as well as more than 50,000 third-party developers who have so far put up over 900 apps on the Android and Apple platforms. As Signify and its many partners move forward, more use cases will be identified and the whole ecosystem will become an expanding universe—at least until the next meteor hits.

Tags:  alliance management  ASAP European Alliance Summit  B2B  c-level  ecosystem  integration  Internet of Things  IoT applications  Ivo Rutten  joint steering committee  one-to-one alliance  partners  Philips Lighting  platforms  Royal Philips  Signify  strategic alliances 

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The Sound of Success

Posted By Michael Leonetti, CSAP, Wednesday, July 10, 2019

In a past issue of Strategic Alliance Monthly, we asked Bruce Cozadd, cofounder and chief executive of Jazz  Pharmaceuticals, Could Music Be the Secret Sauce of Compelling Collaborative Leaders?

 

“This concept of individual excellence, but it’s all about how you play as a group, really resonates to me as a management philosophy,” explained Cozadd, not merely a scientist, but also a classically trained musician who routinely plays all requests on the company piano while surrounded by  singing employees. “It’s a playful, energetic theme that fits perfectly with alliance management,” chimed Ann Kilrain, Jazz’s head of alliance management. “We recognize that while individuals are able to accomplish much as individuals,

we create something much greater together.”

 

The musician-CEO and his CAO continue their remarkable riff on the topic of collaborative leadership, discussing how leaders model their  organization’s values and specifically about how alliance leaders can impact the culture of an organization—change it, grow it, and help it prosper. Talk about resonance. In my observation, the best partnering companies have leaders who display the qualities Bruce Cozadd projects. And the best alliance executives model transparent leadership with partners and bring that same style to their internal leadership and alliance team culture.

 

Cozadd reminds me of my former CEO and the straightforward model I developed when I was his alliance leader.

I call it The Four Cs of Alliance Leadership:

  • Communication
  • Culture
  • Collaboration
  • Compromise

Communication. And I mean all the time. Overcommunication is the name of the game. But remember, as the late Stephen Covey taught, “Seek first to understand.” Every day you need to ask yourself, in your internal leadership role, are you seeking to understand in the way you would with your partner? Then, given that understanding, are you providing the constant, effective communication required to be understood?

 

Culture. My CEO used to tell me, “Don’t lose your soul.” He wasn’t discussing matters of faith, rather, of culture. He defined culture as what made our company great. Culture eats everything—breakfast, lunch, and dinner. But it has to be good culture—most of us have struggled uphill to partner when we work in the opposite kind of corporate culture. In a good culture, everyone is respected, not just the boss; everyone, including the boss, is accountable, expected to be open, honest, trustworthy.

 

Collaboration. That’s what we do with partners—but are you demonstrating and practicing a partner mindset within your own organization? Again, not easy. You may be criticized, you may be challenged, you may be asked who do you work for—us or them? But when you break through—when collaborative leadership begins to become part of your culture, supported by your CEO— you’re going to be wildly successful with your partners.

 

Compromise. True leaders model, every day, the ability to compromise without abdicating. Never compromise your goal. Instead, seek greatness, but understand the solution you define together will be the solution that will make you successful. You have to define it together, with your colleague or your partner, which means you have to compromise.

 

Notice that “Command” doesn’t appear in my Four C’s of Alliance Leadership. Any enduring leader knows how to command, but great partnering organizations, and great companies, get great results because people truly invest, not because they’re told what to do. Partners work the same way, as Cozadd recognizes.

 

“When we start discussions with a potential partner,” he explains in this issue, “my comment to our team is, ‘If we’re successful, we’re going to end up working with those people on the other side of the table. Let’s start treating them from the first time we meet them with respect, transparency, honesty. No hide-the-ball, no misrepresentation of our interests. They should come out with a high degree of trust in everyone. It has to be the whole team.’”

 

Call it conducting the collaborative symphony—or, simply, the sound of success. 

Tags:  Alliance Leadership  Bruce Cozadd  Collaboration  Communication  Compromise  Culture  Jazz Pharmaceuticals  Music  Resonance  Strategic Alliances  The Four Cs 

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Discovery across Sectors—and Generations

Posted By Cynthia B. Hanson, Monday, July 8, 2019

Academic Partnering Gives Industry a Chance to Magnify Discovery—and Foster the Personal and Career Growth of Millennials

 

One of the benefits of academic collaboration is that industry has the opportunity to foster the personal and career growth of millennials. The academic collaboration article in Strategic Alliance Magazine highlights the Johns Hopkins University-MedImmune Scholars Program. We need more of these types of academic collaborations to support innovation, and also the young minds so eager to engage in finding the next great breakthrough for society. During an ASAP Global Alliance Summit Keynote Speaker Alex Dickinson, senior vice president of strategic initiatives at Illumina, has pointed out, innovation has the power to lead to the end of disease. Are we ready for that kind of transformation?

 

I was reminded of the need to find ways that industry can engage millennials in innovation when my daughter and I swapped articles over the weekend. A technology buff with a gift for writing, she was interested in the advances and inventions noted at the beginning of the academic collaboration cover story. She also found the accompanying interview with Star Trek: The Next Generation writer and gaming aficionado Lee Sheldon intriguing, because he instructs a generation of millennials born and bred on futuristic worlds where technology can teach the joy of progress through teamwork and collaboration.

 

As I looked over my daughter’s essay, I marveled at how our work intertwined. She had selected the theme of “discovery” for this semester’s English class with the task of relating it to each book she reads. Her assignment was to relate discovery to Ayn Rand’s Anthem. My assignment for this issue of the magazine was to probe the value of discovery in relation to academic collaboration and industry.

 

“Discovery’s everywhere. It is fueled by the desire to learn and demands the yearning to grow. The uncovering of a new fascination is the manifestation of discovery. This love for learning is cherished and leads one to bigger and larger opportunities for growth; for without discovery one would not be introduced to areas where growth is needed,” she wrote. “Anthem brings to light the impact of discovery in societies, and shows that without it, one cannot advance or improve.”

 

The protagonist in Anthem is Equality 7-2521, an intelligent, non-conforming thinker who has been relegated to the career of street sweeping. Educating himself secretly by candlelight, he reinvents electricity during a moment of inspiration. Electricity was banned to keep the masses under control, but Equality 7-2521 realizes the revolutionary potential of his discovery if turned into an invention and manufactured because it would make life easier and also could foster other inventions, furthering societal growth. He takes the reinvention to the World Council of Scholars, the so-called greatest thinkers from around the world. But the government system has sapped them of their creativity, consensus-building, and collaborative abilities on even the simplest of innovations. Equality 7-2521 is then punished for his efforts to think out of the box and runs away.

 

“Discovery is the secret ingredient for the progression of a person or society. Without discovery, there would not be the realization that there could or needs to be improvement,” my daughter concluded. “The challenge to break free from other’s restrictions or our own is a daily struggle. When we transcend personal limitation and government obstruction, our capability to grow increases.”

 

While innovation needs some government limitations in place, such as safety and ethical guidelines, excessive restriction goes against the grain in human nature, as my daughter points out. Discovery, innovation, and manufacturing are an innate and necessary component of a healthy society. Clearly, academia is a seedbed for ideas. If nurtured properly with appropriate creative and financial resources, and combined with collaborative zeal, it can result in a cornucopia of benefits to industry and society. Many millennials are waiting in the wings for the opportunity to engage in discovery provided by a well-designed industry-academic program. It’s well worth considering as part of your overall alliance management strategy. 

Tags:  Collaboration  Forward Thinking  Millennials  Strategic Alliances  Technological Benefits 

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The ‘Boundary Bridger’: How Leadership Style Drives Alliance Team Performance

Posted By John W. DeWitt , Tuesday, March 12, 2019

“The alignment challenge is not unique to strategic alliances,” commented veteran alliance manager Timothy B. Steele, president of ARM Partners in Leesburg, Virginia, as he kicked off the closed-door, invitation-only ASAP Leadership Forum on Monday, March 11—opening day of the 2019 ASAP Global Alliance Summit in Fort Lauderdale, Florida.

Indeed, leadership teams typically are aligned only 17 percent on any given topic, according to research by SchellingPoint that builds upon the work of Thomas Schelling, the late behavioral economist who (with Robert J. Aumann) received the 2005 Nobel Prize in economic sciences “for having enhanced our understanding of conflict and cooperation through game-theory analysis.”

SchellingPoint’s “analysis of 230 collaborations uncovered that teams are aligned on only 17 percent of their peer’s views of their collaboration,” according to Michael Taylor, SchellingPoint’s chief executive. Research further indicates that about 60 percent of senior leaders’ time is spent securing alignment across the leadership team.

Steele and his co-facilitator, Loyola University Maryland professor Dave Luvison, CSAP, PhD, described this aspect of leadership as “a boundary-bridging role.” Alternating between presentation and robust discussion with the group of veteran alliance leaders, Steele and Luvison presented leadership models and emerging research identifying the critical role of boundary bridging and other key leadership behaviors.

“When we look at the job of alliance leadership, we talk a lot about focus on the customer, Steele said, “but if you don’t have this boundary-bridging role,” instead of being a chief alliance officer (CAO) with a seat at the CXO table, you might end up on the menu. Your alliance skills might make you able to cope with ambiguity, but “don’t be ambiguous about having clear mission and mandate, because [building alignment] is one area of alliances where you don’t want to deal with ambiguity. Get it crisp and clear—the less ambiguity you have the better off you are.”

Research into leadership styles of product management teams—according to Luvison, an excellent analog for alliance management—supports the notion that you should “push alliance metrics to the CXO suite [so that it is] leveraged across the business,” Steele continued, adding that that boundary bridgers integrate the alliance agenda into annual corporate planning and involve business P&L owners into key partnering dynamics and decisions.

The science indicates that boundary bridger CAOs establish a “North Star” to guide their teams, a concept advanced by The Rhythm of Business and McKinsey, Steele noted. Furthermore, boundary bridgers demonstrate high emotional intelligence and are able to “feel the headwinds and tailwinds happening in your business,” Steele said. “Think about being up on the balcony, watching yourself dance, anticipating what your partner’s next move is.”

Fundamentally, Luvison said, boundary bridgers understand that just doing a good job does not alone drive success. Research exploring how particular leadership styles improve performance of teams has identified three types of leaders. The first type of leadership style describes leaders primarily engaged in task-focused behavior, “managing and driving the team to perform, making sure every executional aspect of the alliance is done properly. The second type are scouts, who see themselves as responsible for bringing resources to the team. The third type are ambassadors focused on dialoguing with superiors and other stakeholders, proactively putting themselves on the agenda of their leaders, and managing behaviors.”

According to preliminary research findings, Luvison said, “ambassador-led teams outperformed [the two others], especially when combined with task behaviors.” Interestingly, he continued, “Frequency of communications was less important than the nature of the boundary-bridging activities. Ambassadors created the opportunity to promote the team, secure resources, and protect it from interference.”

In other words, successful boundary bridgers also demonstrated traits of the other two types of leaders.

The facilitators then asked the two-dozen or so senior alliance execs in the room how they would describe their leadership style and how much time they spend on boundary bridging. General consensus in the room: 50 percent, if not more, of their time is spent on internal alignment across boundaries.

“It’s a full-time challenge to do this. It’s not just something you can do and be done,” commented one pharmaceutical alliance leader.

“I find I have to be task-oriented even when being ambassador,” said another senior pharma business development and alliance leader.

A leader in a large high-tech company with an immature alliance practice commented that, “since it’s a new alliance management function at our company, the ratio is much higher. We have to do the WIFM—‘what’s in it for me?’—lots of meetings, lots of time spent,” the exec explained. Her boss “spends 90 percent of his time as ambassador and is more networked than most senior leaders at company,” she continued, adding, “But we do split duty—you can evangelize, but you can’t deliver the goods if you’re not executing.”

Another leader commented that “it’s a fallacy that software will solve the problem, that [you can]manage by software, manage by milestones, and forget about alignment. Then you are managing instead of leading. And if leaders are not leading, managers default to tactical.”

Stay tuned for more of ASAP Media’s coverage of the Leadership Forum and other seminal leadership discussions at the 2019 ASAP Global Alliance Summit.

Tags:  ARM Partners  boundary bridgers  communication  Dave Luvison  McKinsey  stakeholders  strategic alliances  The Rhythm of Business  Timothy B. Steele 

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‘Swimming in Partner Soup:’ 2018 ASAP BioPharma Keynote Addresses Challenges of Tech Collaboration on Prescription Digital Therapeutics (Part 1)

Posted By Cynthia B. Hanson, Tuesday, September 25, 2018

Dr. Corey McCann is a man who wears many hats—scrubs, academic cap, campaigner, jester, and even hardhat. As the first of two keynote speakers at the 2018 ASAP BioPharma Conference “Creating Value and Innovative Partnerships by Driving the Alliance Mindset,” Sept. 24-26 in Boston, Massachusetts USA, he provided a lively presentation in which he showed the audience how he switches his hats with aplomb. In his captivating talk, “Lost in Translation: Communication, Confusion, and Consensus in Strategic Alliances,” the physician, scientist, entrepreneur, healthcare investor, and founder/CEO of Boston-based Pear Therapeutics, Inc., delved into the timely but tough topic of the alliance management interface between biopharma and tech.

Colleague Brooke Paige, CSAP and vice president of alliance management at Pear Therapeutics, introduced McCann by lauding his many “heroic” accomplishments as founder of several startups, a trained boxer with endless energy, and highly approachable executive whom colleagues nicknamed “Snacks” because he rarely stops for a full meal.

McCann then delivered a clever, sometimes humorous, talk from the C-suite about the small, innovative company’s partnering with big companies in their quest to pioneer prescription digital therapeutics for the treatment of serious diseases, including addictions.  The cognitive behavioral therapy-based treatment is software that comes with a doctor’s prescription. The software responds and morphs over time, according to the needs of the patient. The downloaded product requires an access code from the physician.

“We are swimming in partner soup,” announced McCann as he talked about the challenges of Pear’s ample pipeline, which involves 10 products that require separate approvals from the FDA because of the unique framework of prescription digital therapeutics. “You will see us aggressively partnering across all of these verticals,” he continued, while flashing a slide of Pear’s pipeline.

Alliance management at Pear must bridge two distinctive worlds. Pear’s team is “half and half,” he explained: pharma is based in the Boston area; tech is based in the San Francisco Bay area. “We brought these two very disparate sets of people together” in one company—but to do that required a lot of effort to enable tech and pharma to understand the lingo of each’s area of work.   

“One of the things I would like to interweave into this talk is this idea of communication between alliance partners, and nonverbal cues, and how we are productive or nonproductive,” he said, while providing the example of etiquette surrounding the exchange of business card. “Even for those of us who think we have a handle on this very basic skill—this handing of paper to another human being—there is ambiguity.”

“How do entirely different disciplines communicate?” he asked the audience.  “There is an interface between tech and biotech. How tech people communicate with one another is very different than how biotech people communicate with each other.”

People in the two industries dress differently, he then explained. A person in the Bay area might “eat avocado toast and ride a scooter to work. … If I’m interacting with the tech team, I make sure to pet their dogs they bring to the office,” he explained in a sea of laughter from the audience. “One of my personal favorite examples is this issue of language. When pulling Pear together, we used the acronym API—which means Application Program Interface in tech, but for biotech, it means something different”—Active Pharmaceutical Ingredient.

It actually took a while for the two teams to figure out this discrepancy, he explained, again as the audience rippled with laughter. But in the end, the two industries found the glue that holds them together: “Impacting the patient. That is the rallying cry for us. That is how we approach partnership—through good and bad.”

Stay tuned for more of ASAP Media’s coverage of Pear CEO Corey McCann’s keynote and other sessions at the 2018 ASAP BioPharma Conference.  

Tags:  2018 ASAP BioPharma Conference  Alliance management  Alliance Mindset  biopharma  Brooke Paige  cognitive behavioral therapy  creating value  C-suite  Dr. Corey McCann  partnering  Pear Therapeutics  prescription digital therapeutics  software  Strategic Alliances  tech 

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