In the IT channel, Strategic Partnerships are commonplace, most notably with the recent collaboration between the two technology giants, Cisco and Apple. The Apple & Cisco partnership is a perfect marriage, Apple gain access to the Enterprise market, whilst Cisco benefit from iOS and facilitate Apple’s entry into the Enterprise arena. But, what exactly is a Strategic Partnership?

Price Waterhouse Cooper define a Strategic Partnership as:

“A strategic partnership involves some shape of formal agreement between two or more parties that have agreed to share finance, skills, information and/or other resources in the pursuit of common goals.”

Sharing

Before a Strategic Partnership has been formalised, firstly ensure that all parties share the same expectations of the outcome of such partnerships. Start by clearly defining shared business objectives, you both might want to achieve A or B, but can you achieve them together? Strategic Partnerships are generally triggered by the existence of shared objectives. For example a Managed Services Provider or Cisco Channel Partner may need Cisco Technical Resources worldwide due to a lack of in-house specialist Cisco Network Engineers. Therefore there exists an implied shared objective, prior to a formalised agreement being signed.

As highlighted in the PwC definition, a successful Strategic Partnership can only be achieved by sharing resources, finance, information and skills. Each company will have a unique strength which the other lacks, therefore combining capabilities allows both partners to access new markets, increase product/service offerings, increase revenues and embark on a mutually beneficial knowledge sharing relationship. Strategic Partnerships are a viable alternative to traditional growth strategies including organic growth, angel investors and borrowing.

Culture & Values

A 2013 CIPD survey showed that 60-70% of Strategic Partnerships fail, often triggered by a mismatch in culture and company values. The lesson learned from this statistic is to choose your partners based on common shared values and company culture. If your company has an aggressive sales culture who earn their competitive advantage via low prices, then your ideal partner isn’t a company who values quality of service over price.

Achieving a cultural fit where both parties share values, should not be underestimated. A written agreement will specify relevant KPI’s including volume of sales, quality of service and conflict management. However, in the blink of an eye, the days and months of negotiations can be destroyed with a cultural faux pas. Obvious cultural differences occur when partnering with an international partner in body language, linguistics and beliefs. However, more subtle factors like equality, gender balance and employee & stakeholder engagement can contribute to a failed or successful Strategic Partnership.

Ease of Integration

After agreeing on shared objectives, resources and culture, integration is the next step before the partnership is good to go. The theory of how companies form a partnership is the easy part, now it’s time to fit the final pieces together.

Integration is the point where 2 (or more) companies in a Strategic Partnership become one entity. What type of information is shared between parties? What processes should be implemented to directly deal with joint customers? What systems are implemented to process enquiries, sales and communications?

When a Cisco Channel Partner or ICT Provider, needs to book a Cisco Network Engineer from a Cisco Professional Services partner onto a client site, there needs to be a unified and coherent system used by both parties. A scope of work will be agreed along with timescales, prices and quality standards. Mapping systems would be in place so all partners can identify where Network Engineers are working and how and when to book the next available one: all contributing to a seamless synergy between Strategic Partners.

Have you experienced a Strategic Partnership where only 1 party truly benefits? Have you been involved in a Partnership where you value quality of service but your partner values low price more? Tell us your horror and success stories 🙂

Sell more and sell more now! Do as I TELL you. Listen when I bark! – We’ve all had horrid bosses like this, imparting their aggressive nature and sell-at-all-costs attitude which manifests into a toxic culture of bullying, aggression and arrogance. Working in an environment with a poisonous culture negatively impacts productivity, staff morale and business operations. On the other hand, focus on creating a positive culture which is people-centric and your business can build a substantial competitive advantage over market rivals.

Training & Development

In the year 2015 Technology is advancing at a rapid pace, smartphones & smartwatches, bigger memories, and bigger processors, faster machinery – none of which have any importance or relevance to your company culture and therefore highlighting that your employees are your most valuable asset.

Dedication to learning is an essential element in any successful company culture. Learning needs to be a continuous company process encouraging all staff members to embark on a quest for knowledge. Gathering professional qualifications is par for the course, but the value of soft skills shouldn’t be underestimated. Communications skills, work ethic, transferable skills and leadership qualities can all be nurtured from personal development training both in-house and externally. It is necessary to create a training and development plan with formalised processes by following the diagram below:

Training and development plan. 1 Identify and formalise Business Skills Shortages. 2: Identify Employee Skills Shortages. 3: Select Qualifications, Training Courses and Training Plans. 4: Book, Attend and Complete Qualification or Training. 5: Gather Feedback From Employees, Then Repeat Cycle.

Flexibility & Trust

The last time I looked, all my colleagues could tie their own shoelaces, vote, earn a degree and passed the interview that got them their respective jobs – so why do some company cultures insist on babying their staff? – 2 minutes late and you’re reprimanded, wear a tie, ask for permission to make a cuppa, get in your cubicle and don’t get ideas above your station. When written down it seems ridiculous, but such antiquated cultures are commonplace. People daily dread getting up to go into their jobs, another groundhog day – if your staff think like this, then your culture needs addressing and quick!

Don’t make your staff fear for their jobs, create an environment whereby they have no fear and are free to take risks and make mistakes. Improvements can only be made by taking risks, challenging norms and pushing boundaries. Demonstrate trust in your staff, be flexible with breaks, start and finish times. If your employee perhaps has been working late, then allow them to come in late to recuperate and don’t try to squeeze every last morsel of productivity from them. Happy staff are productive staff. Grant your staff the freedom to make a cuppa as and when they please, start late or finish early occasionally, let them work from home, or check their phones for messages during company time. If your recruitment process was thorough enough and your company culture applies flexibility and trust, then you’ll successfully build a progressive culture with loyal and productive employees.

Company Values

A company with an ingrained culture is a living breathing entity, and like people, can have a unique personality. Employees and stakeholders need to be able to identify with who your company is and what you stand for. Create a vision, mission and values statement to support company values – words on a piece of paper mean nothing unless there is a clear and defined strategy to implement & follow. Once company values have been installed into your everyday working environment, your staff and stakeholders can begin to buy into the values and beliefs you promote. Creating company values which resonate with the beliefs of individual stakeholders imparts shared beliefs and shared efforts to achieve a common goal.

Competitive Advantage

Strategy guru, Michael Porter identifies 2 main types of competitive advantage, cost and differentiation. Gaining a competitive advantage through cost measures simply enters companies into an overcrowded race with competitors. Buying newer, faster machinery is easy, but you’ll always be part of that race to the bottom. Cut costs by swinging the axe, make employees work twice as hard to compensate for the axe-wielding, but humans burn out. The solution to creating a sustainable competitive advantage can only be achieved by delivering superior added value compared to your competitors.

Companies providing services rather than products can utilise their employees to help bring their services to market quicker than their competitors. Those employees can respond quicker to customer trends and demands by offering customised solutions not freely available amongst market rivals. Quality of service delivery must always be a priority over achieving the lowest price. When your company culture focuses on cheapness, cheaper costs, cheaper products then most likely your company culture is just as cheap. Implementing a superior quality of service comes from employees taking pride in their jobs, taking pride in satisfying their customers and pride in the company they work for. Try giving your staff no creative freedom, no trust, no flexibility and an obsession with cost cutting – do you think your employees are proud? If you want happy customers and stakeholders, join the culture club 🙂

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