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Five Ways to SCORE Big When Overcoming Obstacles and Conflict in Alliance Relationships (Part One)

Posted By Cynthia B. Hanson, Wednesday, April 11, 2018

“Every partnership is bringing two cultures together,” explained Candido Arreche, CA-AM, global director of portfolio & partner management at Xerox Worldwide Alliances. He was reminding the audience at his workshop “Onboarding Your Partner: Understanding How to Design a Partnership that Works” about the challenges associated with cultural mergers. The energized presentation recently took place at the 2018 ASAP Global Alliance Summit,  “Propelling Partnering for the On-Demand World: New Perspectives + Proven Practices for Collaborative Business,” in Fort Lauderdale, Florida, USA.

Cultural combinations can be potentially explosive or provide pressure that can act as catalysts for progress and innovation. How you manage them will make the difference in the outcome. Alliances are all about relationships among people, he pointed out, while recalling a trade magazine article that stated that 80 percent of marital relationships are in divorce, separation, or undergoing counseling. In the world of alliances, 50 to 70 percent are in jeopardy. “If we are going to spend time and money to run alliances, we want to make sure they execute,” said the Six Sigma Black Belt.

He then illustrated an emergency landing to drive home his point: US Airways Captain Chesley Burnett “Sully” Sullenberger III’s historic landing on the Hudson River in 2009. The “miraculous” touchdown took place when both engines failed after a run-in with a flock of Canada geese shortly after takeoff.  Sully’s quick thinking under pressure resulted in a hair-raising yet smoothly executed landing that saved all 155 passengers on board.

“How do we execute a landing on a body of water where all passengers survive, which has never been done before?” Arreche then asked. “What was going on? What was going through the pilot’s mind? And how did he execute on it? He was communicating with the airport control tower while under a lot of pressure trying to do what was best for the passengers.”

Sully made great decisions based on three fundamentals that pilots follow, which are similar to how we build frameworks, he purported.

  • They have to aviate—they need to get from point A to point B and keep the plane in the air.
  • They have to navigate—the pilot needs to know the parameters and where he is going.
  • They have to communicate—they need to know how to work the tools to communicate.

Sometimes when we are under severe pressure in our relationships, we seem to not perform. But we need to keep our lives and the alliance going and navigate through the challenges. We need to figure out how to move quickly and overcome resistance, he said. Several years ago, Xerox adopted a framework called SCORE to help overcome and make sense of what’s happening with these types of challenges, he explained. The template has five important plateaus:

  • Select: (target the right partners)
  • Connect (implement business and personal drivers)
  • Onboarding (create a very structured, easy onboarding process)
  • Revenue (take on and understand the sales)
  • Execute (be on task; take what doesn’t work and make it work)

For an explanation of how SCORE can be used to enhance communication and seamless execution in your alliances, see Part II of this blog post. 

Tags:  alliances  business driver  Candido Arreche  collaboration  Conflict in Alliance Relationships  connect  Cultural combinations  execute  onboarding  partner management  partners  revenue  SCORE  Select  Xerox Worldwide Alliances 

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Morphing Your Partnering Philosophy in a Changing World of Digital Drivers (Part One)

Posted By Cynthia B. Hanson, Wednesday, March 28, 2018

Key sectors of the economy are struggling to adapt to disruptions from digital technologies, such as the cloud. The change is resulting in new business models and service sector opportunities in areas such as security and supply chains. In the 2018 ASAP Global Alliance Summit session “Partnering with Change in a World of Ongoing Disruption,” Joe Schramm, vice president of strategic alliances at BeyondTrust, and Morgan Wheaton, senior director, global partner alliances & channels at JDA Software, addressed the huge transformations taking place in these sectors. BeyondTrust has been a provider of cybersecurity software since 1985. JDA Software is one of the largest providers of supply chain and retail technology. The following insights and excerpts from the session drill down to the core of some of today’s most pressing partnering questions during a time of digital transformation:

Joe Schramm: In traditional channels, it’s about “How much product can I sell?” It’s now about “How much value-added service can I provide?” If you can’t adapt [to that new model], you will be out of business.

Morgan Wheaton: The way that you manage cash flow as a software company has changed to subscription-based. But making that change from large payments to a little every month is a chasm that some companies can’t cross.

Schramm: Our origins are more in network operations, but today, we offer complete solutions in privilege access management (PAM) and are a recognized leader in the market. BeyondTrust’s job is to protect companies from bad actors. There are three types of bad actors: nation state-sponsored actors, such as Russia, China, etc., that are after intellectual property to get trade secrets; “hacktavists”; identity thieves. They break the perimeter through fishing with suspicious email links or known vulnerabilities—such as the Microsoft operating system, Adobe, your car, pacemaker, the Grid—to gain access and control. Once in, they try to hijack privileges. Our technology  is used to reduce administrator rights. What’s new is that more in the manufacturing sector are starting to wake up and realize their IP is being compromised. Meeting those customer needs and adapting to digital technologies required rethinking partnering.

The old paradigm:

  • We sold tools; installed them
  • Partnered with resellers to fulfill
  • Systems integrators viewed as competitive
  • No strategy to extend reach

The new paradigm:

  • We sell complex solutions; partners implement
  • Partners sourcing and implementing new businesses
  • Systems integrators are strategic partners
  •   We can’t grow fast enough

Wheaton: At JDA, our customers are some of the biggest companies out there, such as all 15 of the top car companies; 60 percent of soap makers; 70 percent of prescriptions get filled by JDA software. We are seeing their world being disrupted by the cloud. Consider what Amazon is doing by creating a standard for customers where they can order a product by mail that can be returned in a day. They are setting a new bar, and retailers are undergoing massive disruption and asking “How do we compete with this?” Manufacturers need to innovate and deliver in record time. Distributors must reinvent themselves to remain relevant. What does this mean for JDA? Every CEO out there is rethinking their supply chain. We are seeing very much the same things at supply chain companies as they are at security companies. In the old paradigm, systems integrators were viewed as competitors. We partnered opportunistically—there was little standardization.

The old paradigm:

  • We offer turnkey solutions
  • Service partners only extend JDA delivery capacity
  • Systems integrators viewed as competitive
  • No need to extend reach
  • Partner opportunistically

The new paradigm

  • Together we grow the pie
  • Partners help to complete the solution
  • Systems integrators are strategic partners
  • We can’t grow fast enough
  • Partner with intent

We had to reinvent our program with three components:  Consulting partners, to help with implementation and customer strategy; tech partners; selling partners.

So how do you recognize and strategize for the current and anticipated future paradigm shifts? Schramm and Wheaton took turns answering this question, which was relevant to both industries:

  • Practice Open Communication: with partners, customers, and industry leaders.
  • Observe the Competition: What are they messaging? Are you losing your partners?
  • Watch Market Makers.
  • Watch Start-ups—how they are disrupting and how they are doing.

Part II of this post will address how key cultural changes are needed to better enable new partnering models. 

Tags:  alliances  BeyondTrust  channels  communication  cybersecurity software  disruption  implementation  JDA Software  partner  Partnering Philosophy  partners  servic  start-ups 

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The Beatles, Alliances in the C-Suite, and a Company Built on Strategic Partnerships (Part 2): Citrix Chief Marketing Officer Kicks off the ASAP Global Alliance Summit

Posted By John W. DeWitt, Tuesday, March 27, 2018

ASAP Global Alliance Summit keynoter Tim Minahan, an English and political science major and graduate of the Kellogg School of Management’s Chief Marketing Officer Program, joined $3.2 billion Citrix about two years ago. The senior vice president of strategy and chief marketing officer framed his presentation around the theme of “everything I ever needed to know about strategic alliances I learned from the Beatles.”

His first point—“or what I learned from John, Paul, and Ringo”—emphasized the importance of driving growth “With a Little Help from My Friends,” a hit song from 1967’s Yellow Submarine. “The fastest way to grow, to scale, is to trade on someone who has established networks and relationships,” Minahan explained, referring back to the beginnings of Citrix nearly three decades ago. “Back then it was Microsoft—so it made tremendous sense that founders of Citrix made a business out of making it easier for IT to migrate to the Microsoft platform,” he said.

“This carries through even to today,” Minahan continued. “Today, on day one, we’re there to provide our solutions whenever Microsoft launches new solutions. …  As many of you know, Microsoft has a sell-through model. So we’ve predicated our investment, ensuring we’re building the right enablement and incentives for Microsoft and its channel partners.” The size of this partnering opportunity? He cited projections of “a $1 trillion market cap business for Microsoft migrating to the cloud.”

Minahan talked in some depth about swimming in the sea of coopetition, including how Citrix has partnered with Google and Cisco to enable functionality for Microsoft’s office software on the latest generation of Android phones. He peppered his talk with repeated references to “incentivizing your partners” and emphasized one of his key initiatives to radically streamline marketing Citrix campaigns and make joint marketing much simpler for partners.

“When I joined Citrix two years ago, we had over 40 different marketing campaigns. It was very difficult for alliances partners and salespeople to understand,” he explained. “This year, we have three primary campaigns aligned with business outcomes: employee experience and productivity, security and compliance, and choice. We’ve lined up our leading strategic alliances within each of those. … That’s the type of investment we’re making to drive up the ROI,” he added.

“Alliances is really a strategic leader,” Minahan noted during the Q&A that followed his talk. “I elevated our alliance marketing leader. She sits on the marketing leadership team, and we include strategic alliances as we build the market plan, not as an afterthought. That also signals to our organization and our partners that we are very serious about alliances.”

Other Beatles-inspired alliance management insights from Minahan included:

  •  “Come Together”—“make yourselves an essential component by fostering value between partners.”
  • “Tax Man”—“find a common enemy. It could be a common business challenge, not necessarily a competitor.”
  • “A Day in the Life”—“always put the customer first.”
  • “Help!”– “make the investment to ensure our partners and channel can be successful and—I can’t say it enough—incentives.”
  •  “Revolution”—“have a common vision for a better future. We all want to be a part of something great that is transforming the world.” 

Tags:  Alliances  Cisco  Citrix  C-Suite  Google  marketing campaigns  Microsoft  strategic leader  Strategic Partnerships  Tim Minahan 

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‘Building Corporate Capability for Collaboration’: Pre-Summit Workshop Attendees Assess their Organizations’ Readiness for the ISO 44001 Standard for Business Collaboration

Posted By John W. DeWitt, Tuesday, March 27, 2018

If you think your organization meets a certifiably high standard of collaboration excellence just because you’re an ASAP member and employing best practices—well, you just might be right. On Monday, March 26, several dozen ASAP Global Alliance Summit attendees were able to validate their assumptions and measure the level of their organization’s collaborative capability against the International Standards Organization’s (ISO) 44001 standard for business collaboration and ASAP’s Handbook of Alliance Management. Norma Watenpaugh, CSAP, principal of Phoenix Consulting Group, and Parth Amin, CSAP, principal of Alliance Dynamics, LLC, presented an in-depth ISO 44001 preconference workshop at the 2018 ASAP Global Alliance Summit in Ft. Lauderdale, Florida USA.

“What is the standard? People tell me you can’t standardize a relationship—they are all so different,” Watenpaugh noted in her opening comments. “And this is true—but we know from ASAP that there is a common life cycle and approaches that make alliances more successful.” More to the point, she continued, “It’s a framework, not a rigid process. It doesn’t tell you how to have a process or governance, it just tells that you need to address that.” The standard is designed for broad applicability, she added. “It enables organizations of all sizes—you can be a two-person organization and certify.” Regardless of organization size, when two or more organizations partner, “having a common model, language, framework, makes partnering more successful because it reduces friction.”

The ISO 44001 standard “also recognizes cultural differences” and, “as a standard, it’s very unique in promoting collaborative behavior,” Watenpaugh said. “Most standards are about processes, how you manage those processes, and that’s part of it as well—but there is high emphasis on having collaborative behavior and culture.”

The first part of the 90-minute session focused on how ASAP certification and best practices complement and accelerate ISO certification. Watenpaugh and Amin walked workshop participants through a collaborative maturity model based on the fusion of the ISO Standard and the ASAP Handbook of Alliance Management: A Practitioner’s Guide. Amin discussed new tools and then had attendees utilize a live assessment app that, based on the responses, scored their organizations’ ability to deliver high-performing collaborations. Attendees also received (on a memory stick) a comprehensive implementation guide that maps the ISO 44001 standard to the ASAP Handbook of Alliance Management.

Amin, an evangelist for the ISO standard who has worked closely with ASAP partner New Information Paradigms to develop the assessment tool, emphasized “the importance of relationships to CEOs.” He and Watenpaugh—leader the US technical advisory group for the ISO standard who previously led the revamping of the ASAP Handbook of Alliance Management several years ago—addressed, from an enterprise perspective, why relationships struggle in practice. “Getting value from collaboration is pretty hard,” Amin said. Amin and Watenpaugh talked about how a standard helps to get that value—on an individual, organizational, and partner level—and how ASAP best practices and certification contribute to the standards.

Assessing Readiness for ISO 44001
Amin and Watenpaugh walked through “the initial steps for certification—focusing on the assessing your organization’s readiness and the assessment tool itself,” said Amin, referring to a 20-question assessment app developed by the UK-based New Information Paradigms. Participants then roll up their sleeves for the remainder of the session to “do the assessment live, see their scores, talk about what were some of the ‘ah ha’ moments and surprises,” Amin said, noting that a diverse group of executives participated in the session. “We have broad range of industries represented—from academia, finance, medical device, pharma, high tech, etc.—and a broad range of executive levels—CEOs,  directors, managers, and so on,” he said.

Amin and Watenpaugh “brainstormed on how best to lead our session,” Amin said. “Should it be educational or interactive? We figured it would be something of both, instead of us preaching the whole hour.”

See John W. DeWitt’s recent feature article in the February issue of eSAM Plus for more about the ISO 44001 standard, including excerpts from the February 15, 2018 ASAP Netcast Webinar on the topic with Watenpaugh, Amin, and Cisco collaboration guru Ron Ricci, who discussed “Is Your CEO Challenging You to Go Faster? Why a Collaboration Standard Can Help.”

Tags:  Alliance Dynamics  alliance management  alliances  ASAP Handbook of Alliance Management  certification  International Standards Organization’s (ISO) 44001  Norma Watenpaugh  Parth Amin  Phoenix Consulting Group  standardize a relationship 

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Successful Transitions: ‘How to Optimize Value and Gracefully End Alliance Relationships’

Posted By John W. DeWitt, Tuesday, March 27, 2018

You’ve probably got a process for kicking off an alliance. What about when it’s time to end the alliance relationship? On Tuesday, March 27, at the 2018 ASAP Global Alliance Summit, two veteran partnering executives tackled the topic of “How to Optimize Value and Gracefully End Alliance Relationships.” This session combined the insights and perspectives of Ron McRae, CSAP, director of alliance management at Janssen Biotech, and Steve Twait, CSAP, vice president of alliance and integration management at AstraZeneca.

As it so happens, “AstraZeneca and J&J are working through a transition right now,” Twait noted. “While we didn’t turn it into a case study, we were able to pull in some learnings from that. And while the two of us coming together was serendipity for the conference, we actually have some history and current projects that our companies are working on together.”

Prior to the 2018 Summit, I asked the two of them: Why do you feel that the topic of graceful exits and transitions is important to delve into more deeply? What inspired the two of you to invest your time into sharing your case examples and insights?

“Alliance management professionals typically have toolkits with practices and tactics for kicking off an alliance. There is a lot of excitement and commitment to that phase of the alliance lifecycle. However, the same is not generally true when it is time to end the alliance relationship.  Alliances come and go, but successful management of an alliance transition requires both timely and effective planning as well as flexible problem-solving capabilities at all levels. It also may require a fair amount of persuasion to ensure commitment as colleagues want or need to move on to new responsibilities,” McRae noted.

If it’s over, why does the transition matter so much? “It is important to eliminate or minimize any customer disruption to preserve asset value and even reputations of the partners,” McRae responded. “In the biopharma industry, it can even have life or death consequences depending on the indications of the product and/or availability of other medical options.”

In these cases, “the connection to patients is something we need to think about,” Twait noted. “You’ve got patients relying on the product, as you transition it to the other company, so you need to make sure you keep the patient in mind and don’t interrupt what they need.”

Even when lives don’t hang in the balance, “we should also keep in mind that we want to make sure we manage these situations as effectively as possible, as we may have another ongoing or future alliance opportunity with the partner,” McRae added.

Twait and McRae emphasized that the toolkit for graceful exits is not entirely unfamiliar.

Many of the same governance structures and tools utilized during other phases of the alliance lifecycle can be used during transitions or terminations, but the emphasis of some may change and new ones may still be needed—for example, alliance transition agreements and their components,” McRae explained.

More to the point, because of their relationships and skillsets, alliance executives are the right people at the right time during a transition.

“Alliance management is uniquely positioned in most organizations to maintain that value as the asset shifts hands from one partner to the other, because of existing relationships externally and internally, as well as our persuasive mindset and commitment,” McRae said. “Having led several transitions, we have experienced a number of lessons learned that we are sharing with our alliance management colleagues to help them anticipate and navigate similar situations.”

To be clear, this is not about when “alliances go bad.” It’s about timely, well-managed, intentional transitions.

“Transitions are part of any alliance,” Twait said. “Up front, we say this isn’t talking about when an alliance fails for technical reasons, but more about taking a thoughtful approach to how you transition something that’s been unbelievably successful—you’ve had a longstanding partnership but eventually it made sense for one company to manage the asset. Our focus is more on key learnings when, because of any number of reasons, the time is right for you to transition.”

McRae and Twait provided a number of such examples.

“Some of Ron’s examples involve a very mature alliance transitioning into a different phase,” Twait explained. “Some of the examples I provided are transitions, even divestments, where AstraZeneca is transitioning a product to another company because we are, for whatever reason, focusing our efforts in other areas.” Getting the transition right makes a crucial difference because you’re “leveraging years of relationships if it’s happening after a long relationship,” he continued. “You have people who have invested years in a product, business, and patients.”  

Tags:  alliance executives  alliances  AstraZeneca  governance structures  Janssen Biotech  Ron McRae  Steve Twait  transition 

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