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Vanguard Ecosystem Leadership: The Highly Successful Evolution of Salesforce’s Partnering Practices

Posted By Cynthia B. Hanson, Wednesday, October 17, 2018

Salesforce’s vanguard leadership has been exemplary when building strong partnering ecosystems. As a rainmaker in the API economy, the company designed the largest technology ecosystem and most active cloud marketplace. Leslie Tom, senior vice president of AppExchange marketing and programs, has played a significant role in that transformation. In her session “API Economy: Salesforce AppExchange Partner Ecosystem” at the 2018 ASAP Tech Partner Forum, “Reimaging Part­nering in a Disruptive World,” on October 17, at the Four Points by Sheraton, San Jose Airport, San Jose, California, she plans to share strategy and insight on how to build and benefit from a strong partnering ecosystem, and the invaluable role alliance managers play in fostering a healthy ecosystem.

“Our alliance managers at Salesforce are different than at other tech companies,” Tom began the interview. “They are involved throughout the entire process of recruiting partners to build solutions, onboarding partners, and working with partners on their go-to-market for business growth. They are building customer success from day one. Our alliance managers are critical to the success of the partners, [and we are] all focused on the joint success of our customers. When partners come into our ecosystem, the sole focus really is on partner and customer success. We have a saying at Salesforce to our partners: ‘When you succeed, we succeed.’”

In late 2005, Tom joined Salesforce and started recruiting partners for the AppExchange. The AppExchange was launched in 2006. From the beginning, Salesforce had “partner account managers” that acted like alliance managers, she explained. During the past 12 years, the company developed a much larger team that is now “100 percent focused on partners, their success and joint customer success.” Salesforce’s alliance managers work with one to many partners, depending on the company size and revenue opportunity. One of the company’s newest partners, Nokia, underwent a transformation similar to what many larger Fortune 500 companies are now trying to create—new revenue channels through partnerships, she continued. The former phone maker transformed to serve communications service providers, governments, and consumers.  Nokia created Nokia Intelligent Care Assistant solution on the AppExchange to provide holistic view of the customer to drive fast solutions to customer care issues.

The AppExchange—the #1 enterprise cloud marketplace—also goes by another name: AppExchange, the Salesforce Store. “We refer to AppExchange as the Salesforce Store because it offers much more than apps,” she said. “In today’s customer-driven world, we have apps, components, bots, data sets, and more. In 2006, we were more of an app directory where customers could find Salesforce extensions. Today, the AppExchange offers intelligent recommendations, personalized engagement and guided learning paths to help our customers find the right solutions faster. We have more than 5,000 solutions and more than 6,000,000 installs on the AppExchange.”

Other app marketplaces offer a one-to-one exchange, such as if you download an app for your phone, she explained about the difference. “On the AppExchange, one solution can be deployed to thousands of users; it’s not a one-to-one exchange. In fact, 88 percent of all of our customers are using AppExchange solutions and 89 percent of the Fortune 100 use AppExchange solutions. What is also unique about the AppExchange is that we think about it like Amazon in terms of customer reviews and ratings. If you go to AppExchange.com, there are over 80,000 customer reviews with star ratings, so our customers can look at multiple solutions, evaluate on peer reviews, and find the right fit for their business challenges.”

She then returned to the central theme of the session and reiterated the most important point: building a strong partner ecosystem focused on the success of your customers. “If your focus is on customer success, your partners and your company will be successful together. That is how we work with our alliance managers—to ensure that our partners are focused on customer success.”

Stay tuned for more of the ASAP Media team’s coverage of the 2018 ASAP Tech Partner Forum on the ASAP Blog at www.strategic-alliances.org. Learn more about the 2018 ASAP Tech Partner Forum at http://asaptechforum.org

Tags:  alliance managers  Amazon  API Economy  AppExchange  ASAP Tech Partner Forum  customers  ecosystem  Leslie Tom  partners  Salesforce  solution  transformation 

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Ready to Externalize? Start internally.

Posted By Stuart Kliman and Electra Hui, Vantage Partners (ASAP EPP), Tuesday, September 18, 2018
Updated: Monday, September 17, 2018

In the past, most companies assumed that the way to create value and, indeed, to win in the marketplace was to have the singular best internal capabilities—from research to innovation to development to manufacturing and beyond. Today, more and more companies know that the best way to bring greater value to customers is by finding, accessing, and taking advantage of innovation wherever it exists—which is, of course, frequently outside the company. They know, in other words, that the key to winning is to “externalize”.

But while the will to externalize is there, and many firms have taken various efforts to do it, most still haven’t truly captured the promise of externalizing. Why? Because while they espouse externalizing as a goal, they haven’t fully embedded the notion of externalization into their internal processes and behaviors. They’re stuck in an outsourcing mindset (at best), focused on ensuring that their internal efforts are as strong as possible and looking to partner only when they believe they have gaps or, perhaps, that there is some unique external capability that they need to leverage. External partners are viewed as a means of fulfilling a specific, targeted function or technology instead of fundamental elements of the company’s strategy.

To successfully capture the value promised by externalization, you need to change the way you think and the way you operate. That means shifting the foundations of the organization from an assumption that you need to win through your own expertise to an assumption that you will win through world-class partnering, broadly defined.

Organizational and Behavioral Drivers for Successful Externalization.
Once you’ve made the mindset shift to winning through partnering, the next step is to embed that mindset into every aspect of the organization—from culture to organizational structure to incentives to processes and tools to skills and behaviors. Otherwise, you’ll have only limited success. Below are just a few of the things organizations need to do to externalize successfully.

  1. Create and communicate a clear and coherent external relationship strategy, so potential partners bring their best opportunities to you. It’s important to proactively, externally communicate the extent and seriousness of your new model and the porousness of your boundaries.
  2. Build the operational interfaces for drawing on external resources. When partnership is baked into operations, companies can move rapidly into new initiatives and markets with a broader set of strategic objectives. This often requires adopting a project mindset, in which internal and external capabilities can be tapped quickly and seamlessly for any given effort, without regard to employment status. It also requires building budgets that account for variable external costs.
  3. Be open to creative, “win-win” partnering structures that get the company access to the best opportunities. Companies must be comfortable with creating fit-for-purpose relationship structures that allow for maximum and fair value creation based on the unique needs of each partner.
  4. Ensure partners feel respected and would want to work with you in the future. When companies move slowly on decisions, de-prioritize partner meetings, or undervalue partner contributions or expertise, those partners aren’t likely to bring their best. When partners feel respected, on the other hand, relationships flourish, and companies are viewed as partners of choice.
  5. Train people on how to manage and engage in external relationships successfully. To make partnerships work, people within your organization need to have solid collaboration, influence, and negotiation skills. Managers must be deft at creating and supporting just-in-time teams that can both leverage and deal with difference.
  6. Address issues with partners in a transparent and collaborative manner. Proactive identification, management, and accommodation of difference—between company and partner strategies, goals, culture, risk tolerance, etc.—has to be part of the organizational DNA.  Both parties need to be committed to experimenting together, working iteratively, and periodically reflecting on what is and isn’t working.

Successful externalization doesn’t happen on its own. Leaders need to explicitly define the change in their organization’s strategic assumptions, articulate the implications for the way people will work and how the organizational model will shift, and—most important—purposefully and methodically move the organization to the new, externalized model. Otherwise, externalization will remain nothing more than a nice idea at best, a failure at worst. 

Tags:  Electra Hui  Externalization  operational interfaces  Organizational and Behavioral Drivers  Partnering structure  partners  strategic  Stuart Kliman  Vantage Partners 

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

Posted By Cynthia B. Hanson, Thursday, April 12, 2018
Updated: Wednesday, April 11, 2018

Part One of this blog post covers how Candido Arreche, CA-AM, global director of portfolio & partner management at Xerox Worldwide Alliances, explained Xerox’s SCORE framework for improving alliance relationships in his 2018 ASAP Global Alliance Summit workshop “Onboarding Your Partner: Understanding How to Design a Partnership that Works.” Xerox adopted the framework to help overcome and make sense of cultural and relationship challenges in alliances, 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)

Part Two of this blog post continues Arreche’s description of how the framework works through implementation.

Most alliance relationships hit a snag. The SCORE tool alerts us when a rough point is coming, Arreche explained. Before Xerox implemented this tool, the company’s partner success rate was a dismal 30 percent. Now it’s over 70 percent, he added. Alliance professionals in large organizations sometimes become enamored with building complex tools. What we really need is something like the SCORE model to focus on the process. It’s simple to use with clear standards. Our tools are typically one-sheeters outlining the steps an alliance manager needs to take and understand what we do every day, he said.

It should be leveraged to everybody working in the alliance. It’s all about continuous improvement with all relationships in the alliance: “SCORE creates a common language that gives alliance partners an easy ways to adapt their course,” he said.

You can ask useful questions with each step of SCORE. Take Select, for example: How do you know how to select the right alliance partner? Then there is Connect, which is probably the most important step. At Xerox, for example, we want our alliance and channel managers asking questions about matching business and personal drivers, Arreche explained. You can ask questions about misaligned objectives—from building a strategy session to building a joint business plan to key performance indicators and metrics. There are two types of drivers in any relationship. Business drivers, which are about the goals for being together, and personal drivers. What are the personal drivers, and how do you understand what’s important to Nathan and what important to me? How do you build trust and make sure the end goals are aligned? Which raises the question of Onboarding. If Nathan is new in the company, what are his drivers? He wants to make this work. He wants to show he has room for promotion and ascending in the company and that his new hire was a good idea. He wants to create brand awareness in his organization. How do you uncover his personal drivers in a fast, easy, simple way to get alignment with both parties? It’s important to set business and personal drivers to get commitment and maximize Revenue. “What’s tough is Execution. How are you going to make it work? What performance measures do we have? What is the timeline for execution?”

When you have SCORE for enhancing communication by designing and asking key questions, you improve relationships, which makes it easier to create and align strategy, he concluded. 

Tags:  alliance relationships  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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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 Two)

Posted By Cynthia B. Hanson, Thursday, March 29, 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. This article continues our coverage of the 2018 ASAP Global Alliance Summit session “Partnering with Change in a World of Ongoing Disruption.” Presenters Joe Schramm, vice president of strategic alliances at BeyondTrust, and Morgan Wheaton, senior director, global partner alliances & channels at JDA Software, addressed the considerable transformation in company culture that is needed to better enable new partnering models. The first part of the session covered emerging industry paradigms needed to succeed in today’s fast-paced, partnering-oriented ecosystems. These additional insights and excerpts are gleaned from the second half of the session.

Wheaton: JDA had a new CEO come in a year ago, and instead of replacing people he created a team of JDA employees to create a new culture. The culture at JDA is about three key concepts. Results—JDA is obsessed with delivering customer value. Relentlessness—we relentlessly drive new learning and innovation. Teamwork—we candidly and respectfully collaborate. So what kind of cultural change is needed to better enable new partner models? [The first change is] TEAM, which stands for Together Each Achieves More, a gradual change that takes time.

Schramm: Next on the list is [that] executives need to walk the talk: High-level executive alignment is critical.

Wheaton: Celebrate mutual success: Nothing gets more attention than selling a deal. It’s so very important to get the word out when we close a deal.

Schramm: Re-educate and reinforce. This is a big one as we go after new and different partners. We need to educate ourselves on what the win is with a new partner and why to go after them.

Wheaton: Compensation matters. I’m a coin-operated machine. Salespeople do what you pay them to do. Figuring out how to drive the right behavior through compensation is important.

Schramm: Transparent, open communications. Partners are in for the whole ride, and we need to include them.

In terms of the cultural change specific to BeyondTrust, there are lots of items. We emphasize passion—approaching each day with energy and enthusiasm. Teamwork—we work together and act as one. Customer and partner focus—the most important consideration, we are 100 percent committed to meeting the requirements of our customers and partners. Innovation—we work relentlessly to improve our products and processes for the benefit of customers, partners, employees, and the company. Integrity—we are honest and consistent in our actions.

Wheaton: So can alliance leaders design “future proof” alliances that accommodate ongoing disintermediation, otherwise known as cutting out the middleman in connection with a transaction or series of transactions? My crystal ball may not tell me what future technology will be like, but I know we will be involved in partnering. You need to put metrics in place. Sometimes you can’t future proof all alliances, sometimes you need to pull the ripcord and get out. Sometimes the pesky market shifts.

In summary, Schramm and Wheaton agree on implementing these key principles:

  • Listen and survey—be aware and anticipate changes.
  • Build a culture of “partner first.”
  • “Semper Gumby”—always be flexible; be ready to change things on the fly.
  • Execute today, but keep an eye on the future—monitor what’s coming while keeping an eye on the distance.

Tags:  alliance leaders  BeyondTrust  collaborate  collaboration  cultural change  Digital drivers  ecosystem  flexible  future proof  innovation  JDA  JDA Software  Joe Schramm  Morgan Weaton  Morgan Wheaton  partner first  partnering  partners  Semper Gumby  strategic alliances 

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