04/ 06/ 2004
by Karin K. Schaff Glazier
Does everyone want to be your business partner? It seems like everyone has a way to help you increase revenue with the latest and greatest gizmos or so-called secret weapons. Too many times, we find ourselves in the partner conversation with what appears to be a great sales channel, only to find out quickly that it's a one-way street -- you find the sales leads and opportunities while your partner makes the money.
Partnerships, alliances, strategic networks -- whatever you call them, on the surface, they're nothing more than companies coming together to find ways to leverage each other's products and/or services. The goal is typically to find additional revenue streams and new market entry points. Rarely is the word "partner" taken for what it really means, which is someone who shares your business values, ethics, visions and objectives. And a partnership is something that benefits both entities, not just one. Often, companies forget that once you find a partner, you need to nurture the relationship and cultivate opportunities so that you both reap the rewards.
Before you decide to go headfirst into the next great partnership opportunity, think about the following:
1. Do some internal research. Find out where you have strengths and weaknesses. Look for areas where resources are lacking or could be in the future. Talk to department managers about their specific needs. Ask your leadership which market opportunities they want to seek out and champion in the near- and far-term. Talk with your sales and marketing teams to see what customers are saying about your services, product, processes, expertise, etc. Rule of Thumb: Don't determine what or who will make a good partner in a vacuum. Partner relationships need company-wide support to make them successful.
2. Who's already in your camp? Take note of those partnerships you already have and define their value. Determine where exactly they fit into your organization. Then, find any gaps where a partner may be needed to complete the solution. Review your activities with existing partners to see who is making a measurable difference, versus just being a name on a joint press release. Rule of Thumb: More partnerships aren't always the best idea. They could actually lead to more management headaches and fewer results. Keep focused on a manageable handful with clearly defined expectations, roles and objectives.
3. Take the climate's temperature. Ask around to see if someone in your organization and/or business network knows of a reputable company who may be interested in partnering. See if your company already uses other businesses to complement your services, and determine whether the relationship can be improved and solidified with defined structure and measurements. Rule of Thumb: Be careful of the "friends/family" network. Many times people view this option as an easy relationship (or so they think). These partnerships may be great for the individual with the personal relationship, but not for your business in general. Select partners based on criteria such as market reputation, financial stability, cultural cohesiveness, strategic offerings, team personalities, sales and marketing practices, etc.
Working in partnerships to find new business or strengthen core offerings isn't easy. If approached correctly, partner relationships can be a critical element toward achieving success. Here are some things you may want to consider as you identify potential partners:
- Do they have similar business values and ethics?
- Do they have written partner agreements?
- How open are they to creating joint lead-generation activities?
- Are you both on the same page with an exit plan in case the relationship doesn't work out?
- Do they have someone internally dedicated to cultivating mutual opportunities?
- Is there leadership commitment from both your company and theirs?
- Are there monies available for partnering activities?
- Do either of you have documentation -- such as a memorandum of understanding, lead profile form or partner relationship plan template -- to utilize when building a process that integrates well into both infrastructures?
Now I bet you're excited to tell your client how many great partners you have. Caution! The mere presence of numerous relationships is not a differentiator. It's the depth and strength of those relationships in your network that makes a unique, successful, seamless and results-oriented solution.
Finding, formulating, nurturing and strengthening partner relationships takes time, resources, company-wide commitment and dedication, sometimes money, and most of all, a great deal of understanding, patience and trust. Therefore, before you open the floodgates and take every partner offer that comes your way, think first, plan next, be strategic, and always do your due diligence to make sure it's a partner relationship worth pursuing -- and worthy of your dedication and care.
Author Info: www.pinptpositioning.com
