Friday 21 August 2009

Starter for 12

I once worked for a wonderfully cantankerous sales manager with 4 decades in the saddle. As with many old campaigners his advice was often packaged up in well-honed and pithy (and often stolen) one liners. One of these was...

'If you don't know what to do, do the right thing.'

This fizzed and popped in my mind for a couple of years until I had acquired a team of my own and I caught myself passing on the same advice.

Responsibility for the smooth running of relationships between 2 necessarily self-serving organizations can get complicated. All life is there, not least politics, personality and culture. It defies pure rational analysis. As the scale and the scope of the companies with which you are dealing grows so this complexity increases, often exponentially. So the ability to quickly decide on the 'right' course of action often has to rely on intuition. Companies don't like this. Table a policy based solely on the knowledge, judgement and experience of account managers and watch for the corporate immune response.

So organizations often try to set down policies for dealing with channels and alliances. I am often bumping into discussions about the 'rules of engagement'.* This is one of the alliance management paradoxes. There is a tug of war between trust and process. Companies don't like trusting the local talent and the local talent doesn't want to be tied up in process. But you need both. The answer lies somewhere between the two.

I decided that as a sales manager with a newly hired team I would try to be helpful in this regard. Long before anyone had heard of Jack Sparrow I came up with my Pirates of the Caribbean protocol: ' ... not so much rules as guidelines'. #

The intention was to avoid establishing rules. I offered my team 12 guiding principles against which we would judge our actions and decisions (ideally before they are carried out).





And here they are...


1. The establishment of trust – absolutely necessary and not to be assumed. All the other 11 principles are defined to deliver this. Explicit ways of demonstrating trust should be sought on both sides. Relationships can be viewed as a blend of trust and process.


2. Integrity – not to be assumed. A successful relationship will involve many individuals with differing objectives and pre-occupations. People, cultures and organisations have nuanced notions of integrity. Therefore this notion must be communicated clearly, consistently and often.


3. Consistency – in approach, planning and personalities. Nothing destroys trust better than inconsistent behaviour. Channel managers (especially alliance managers) should not be re-assigned too often. Their longer-term commitment is required. Frequent changes in alliance manager are both a symptom and a cause of an alliance that does not work.


4. Communication that is both open & discrete. Sharing information should be the default. Privileged and confidential information should be the strict exception. The level of open-ness in a relationship is a good guide to its overall state. I.e. if one makes a ‘good’ decision there will have no difficulty explaining it to all interested parties. Do not make decisions that you would rather not publicise. They tend to be suspect. This is the ‘touchstone of decision-making’.



5. A pre-occupation with the customer. No decisions should be made which creates a conflict between the interest of the relationship and that of the customer.



6. A spirit of enlightened self-interest. Look for ways to add value to your partners' business that may not directly benefit your organization.



7. Open & honest resolution of disagreements. Wherever possible disagreements should be anticipated. An advance declaration of actions with an explanation if necessary will prevent surprises and defuse possible disagreement.



8. Viewing conflict as an opportunity – embracing conflict as an opportunity to move a relationship forward & acknowledging conflict as an indicator of mutual commitment.

Often ‘heat’ and emotion when conflict occurs indicates that the relationship is important and valued. The participants care.






9. Empathy. Relationship participants should be constantly assessing situations from the point of view of their alliance partners.



10. Pragmatism and flexibility.



11. A shared view of objectives, environment, intentions and expectations.


12. Accepting the concept of unequal ‘balance of reciprocity’. This describes most relationships where individual activities rarely benefit both parties equally.


For many of my channel and alliance managers this stuff was common sense. But it legitimized it and gave us a framework and a vobabulary. I found it useful, they all said they did too. Hmmm... I thought, then asked, "what sort of sycophants are you?" They replied in unison, "what sort of sycophants would you like us to be?"


* Many business terms reflect the language of war. The expression 'rules of engagment' implies an adversarial relationship in the context of partnering and alliance management. At best this can set the wrong tone. At worst it betrays an attitude that can explain why some collaborations fail.

# If you have'nt seen the film you will be scratching your head, sorry.




















Monday 17 August 2009

Introducing the blog.

A few years ago I sat in a room of alliance managers from about 10 different companies and a very unscientific survey was carried out. Each of these companies represented what industry observers would call alliance best practice. They were 'the great and the good'. Those present were asked what percentage of their planned, sponsored and funded alliances had not been successful. Success was defined as having been openly recognized as delivering the anticipated and desired outcome.

The feeling of the room was that the alliance failure rate in the IT industry was about 75%.*

The purpose of this blog is to explore why the failure rate is so high, test some ideas that will improve this result significantly and generate some new ones. Many, if not all, of the issues discussed will be relevant to channel strategy, policy and everyday management as well as what many call 'alliances'.

One path to business success is to find something of enormous value that is hard to do. Then become the expert.

Put another way, this is a discipline that few companies do really well. It is a source of competitive advantage that many companies fail to exploit.

I have no axe to grind except to say this is my discipline, it can be wonderfully complex, it is often surprising, the notions of trust and relationships sit at its heart, it can be hugely powerful and it can be the key that unlocks exponential success.

Nuff said

* This may not be a problem if a company takes a 'portfolio' approach to collaboration. That is they will invest in 10 relationships, expect 7 to fail, but the rewards from the 3 that succeed will more than cover the investment. Even in this case the rewards that getting that 'hit rate' to 5 would be magnificent. I am yet to encounter an organization where this is an explicit policy.