Partnernomics

by Mark Brigman

  As previsouly stated, companies do not do business with companies, people do business with people, which is why we frequently speak in terms that give companies life-like qualities. For example, we might say that Apple is an innovative company. The fact is, Apple has many innovative employees, their company has a strong culture of innovation (it’s part of their mission), and the company’s leadership team diligently ensures that the company remains known as an innovation machine. But it’s the employees who are innovative, not the company.

  In the normal course of business, a team manager has a certain level of direct influence over his/her staff. He uses his skills and influence to manage employees in order to achieve intended outcomes. However, in the wildcard world of strategic partnerships, we become highly dependent upon each of our partner’s employees to self-manage their own performance. The nature of strategic partnerships means we have less control and less influence as we work with people beyond our company’s boundaries.

  As we begin to execute against the collective goals of our new strategic partnership, the differences between a standard procurement agreement and your strategic partnership will quickly become apparent. If your strategic partnership is like most, only 70-80% of your agreement was fully contemplated when it was signed, let alone agreed to. Strategic partnerships, by their very nature, are “incomplete” contracts that must be more fully defined as the market, opportunity, and relationship evolve over time.

  For this reason (and others), I argue that employees who manage strategic partnerships must be more experienced, more dynamic, and posess a skillful leadership qualities when compared to most commodity procurement positions. It has been said that leadership, in its most pure form, is the ability to influence others to act for the benefit of a common purpose. Partner Development Leaders (PDLs) spend a significant amount of time developing strong relationships with their own team members and with members of their partnering companies in order to have the trust and credibility to influence behavior.

  Contracts do not make partnerships—people develop partnerships. It is only through positive interactions with people with whom we share common interests that true partnerships are born. Again, companies do not do business with companies, people do business with people; the same is true for relationship buiding.

  Relationships are developed over time. If we have strong alignment among our company missions, values, and goals, and we have a high sense of trust, the parternship development process will excellerate significantly. But no matter how perfect a situation may be between companies, relationships still need to be developed in order to maximize the partnership’s full opportunity. Beyond relationship development, all partnerships have to be proactively led to success. For this reason, I like the title of “Partner Development Leader” to be assigned to employees who oversee strategic partnerships as opposed to “Partner Manager.”

  I venture to say that the vast majority of companies who have employees who oversee partnerships refer to their team members as strategic partner managers or partner development managers. And, yes, these talented employees are responsible for managing the day-to-day activities of their partnership initiatives. But the word “leader” is much more appropriate to put in the title. Not just because it sounds cool, but because it is exactly what I expect these seasoned professionals to execute. They must use every tool in their relationship toolbox to positively influence others (internal and external) in order to accomplish the growth engine (competitive advantage) that we seek.

  When we research the definition of a manager, we read descriptions such as, “the person or persons controlling or dictating the affairs of a business, institution, or initiative in order to achieve an intended outcome.” This definition may work for some positions within your company walls, but it is not an accurate description of how partnerships are created or developed.

  In the wildcard world of strategic partnerships, we have elected to invest significant resources in order to strategically align ourselves with another company that is a market leader in their area of expertise. Your strategic partner has the ability to deliver a value-add product or service to your arsenal that will allow you to collectively have a competitive advantage, right? By definition, your organization does not have the knowledge or expertise to control or dictate the moves of your strategic partner. You selected the strategic partner because their firm offers something that your organization does not have, something that is outside of the scope of your company’s expertise.

  The challenge and responsibility of your company’s PDLs are two-fold. They must first manage the day-to-day operations of the partnership and execute the SPLM framework. Second, they must be the leader of the initiative and proactively develop a strong sense of trust, influence, purpose, and unity in order to maximize the strategic opportunity that has been entrusted to them. They must lead!

  When I travel across the country talking with business leaders, I am frequently asked what the key personality traits are for a great PDL. I used to answer by saying, “There are a bunch of very important characteristics that a Partner Development Leader must have in order to be successful.” This is the absolute truth, but not the short answer that people are looking to receive. Then I found the word that best captures the essense of the personal traits required: entrepreneurial. That’s it. The fastest way to describe the dozens of required personality traits in order to be a successful PDL is to say that the person must think and act in an entrepreneurial manner.

  The word entrepreneurial paints a picture that offers valuable insights. I would continue the conversation by offering at least five or six specific traits to ensure the correct message was being received. As with any important job function or team, having the right people on your “PDL bus” will make all of the difference in the world. If your PDLs are “sales people” or “procurement gurus,” your strategic partnership efforts will undoubtedly suffer.

  Strategic partnerships are a unique animal, and they must be treated accordingly. And they must be managed by seasoned professionals who understand all of the complicated dynamics that are frequently present within strategic opportunities. These people not only have to be a visionary to see a need long before it exists, but they must be able to inspire and align resources, both internally and within other companies, in order to accomplish the intended results.

  As stated in Section One, in preparation for writing PARTNERNOMICS, I interviewed more than 100 executives from companies such as Google, Microsoft, General Motors, HP, and Nokia who have a wealth of experience in architecting and leading strategic partnership teams. I asked the senior executives to describe company traits (cultural) that best describe great partnering companies and what personal traits are the most important for highly effective Partner Development Leaders.

  In Chapter 1, I offered a description of thirteen primary company culture traits that emerged as critical for great partnering companies. Now I will offer insights regarding individual personality behaviors and describe their relation to the ideal PDL. As you can imagine, there are many similarities between company culture traits and individual traits, but some important distinctions surfaced that offer additional insights.

  Traits of an Ideal Partner Development Leader (PDL):

  Trusting

  Visionary / Inspirational

  Change Agent

  Emotional Intelligence (EQ)

  Independent / Self-Accountable

  Competitive

  Assertive (address issues, not afraid of conflict)

  Resourceful

  Relentless / Committed / Patient

  Competent

  Listener

  Empathetic

  Respected & Respectful

  Strategist / Problem Solver

  Creative

  Trusting:

  We have established the fact that trust is the foundation and ultimate requirement for relationships. And strategic partnerships are business relationships with specific goals and intentions. In order fo
r PDLs to be successful, they must be able to establish trust as well as extend trust. When leading strategic partnerships, there are two essential forms of trust: predictive trust and vulnerability trust.

  Predictive trust simply means that we complete the tasks that we say we will complete and, in general, others can predict our behavior. That is, others feel that they can count on us because we give them accurate information. If a PDL has established predictive trust, then that means he/she has developed a track record of predictable performance.

  Vulnerability trust, as described by Patrick Lencioni in The Advantage, is having the confidence that others will extend the level of grace needed for you to admit mistakes, failures, and opportunities for improvement. When we engage in strategic partnerships, we embark upon these journeys with best-in-class partners. By definition, competence in their domain has already been established. However, we are all human and at times can be messy.

  Vulnerability trust occurs when we are willing to give and receive an offer of human grace when we have fallen short of a certain commitment. The ability and willingness to offer trust leads to great levels of loyalty and performance as long as your partner has an adequate level of maturity and responsibility. It is important to understand that trust is neither static nor binary. Essentially, it is not fixed and is a continuum between zero and full. Every encounter that we have is an opportunity to either build or undermine levels of trust.

  We must be reminded that Steven Covey shows that trust is a great economic engine. The speed at which we develop authentic trust determines how quickly and how greatly our partnerships flourish. Trustworthy is a label that can be elevated to describe an entire group, department, or company. As previously discussed, surveys are conducted every year regarding the most trusted company brands. As your company seeks to leverage the power of strategic partnerships in order to grow, keep in mind that perceptions of trust for your company, regardless of size, can speed or slow results.

  Partner Development Leaders from both companies must realize the awesome responsibility that they have not only to the partnerships that they oversee, but also to the overall brand of the groups and companies they represent.

  Visionary / Inspirational:

  The PDLs within your company must be dynamic visionaries who are able to constantly inspire and resell the big picture. The very nature of strategic partnerships means that we are constructing a “first-of-its-kind” relationship that does not come with a step-by-step instructions booklet. Great PDLs are able to keep momentum by constantly repainting the visionary picture of what your grand partnership is to be as they continuously rally the troops, internally and externally, to deliver on milestone objectives needed to make the initiative a success. The PDL is the chief cheerleader and caregiver as the partnership evolves, ensuring that all of the components for success are present and linked as needed.

  Change Agent:

  Strategic partnerships by definition require change. We have elected to join forces with a powerhouse company that can provide a unique skillset that will allow us to improve (change). It is human nature to resist what we do not know and anything new is unknown. PDLs must be great at facilitating change, both internally and externally. When new elements are woven into our business practices, we tend to push back. Change agents are able to calm fears, highlight the positive aspects, and garner support. Great PDLs are not only expert change agents, they are also very adaptive to changes that enter a system. It has been said that the one thing that is constant is change. Having PDLs that can evangelize change as well as adapt to incoming change will add tremendous value to your partnerships.

  Emotional Intelligence (EQ or EI):

  Emotional Intelligence is a term that was first created by researchers Peter Salavoy and John Mayer. The concept of emotional intelligence, or having a high emotional quotient (EQ), was popularized by Dan Goleman in his 1996 book Emotional Intelligence. Until the early 1990s, it was commonly accepted that IQ was the best, and possibly the only useful, form of gauging intelligence. That was until these three authors gave life to the concept of EQ.

  In practical terms, emotional intelligence is the active awareness that emotions can drive behavior and behavior can impact emotions within our self and others. The study of EI focuses on the identification and management of emotions. People who have a high EQ are able to “sense” that people are changing their emotions before others recognize it. And they are able to detect that “something is wrong” because they sense a change or a disconnect in someone’s behavior.

  In his book The Sumo Advantage, Bernie Brenner calls this the “Spidey sense” as it is a superpower that is shared with Spiderman. Brenner describes the “superpower” as the ability to draw on a sixth sense that tells you “something is up.” Spidey sense is a combination of intuition and an intimate familiarity with your partner that allows you to detect when the train is staring to come off the tracks. Internal politics, changing market conditions, and competing priorities can continually pull needed resources away from your strategic initiative.

  PDLs need to have this sixth sense to “sniff out” any indications that signal a shift in direction or potential reduction in commitment. A problem or potential problem cannot be fixed unless it is known. PDLs that have a high EQ are able to identify and defuse issues before they hit a point of no return.

  Independent / Self-Accountable:

  Let’s face it, the last thing you or any PDL needs is another chore. In today’s high resource constrained work environment, it is imperative that our PDLs be independent executors. That goes for your organization as well as your partner’s business. You do not want your PDLs spending their time micro managing your partner’s representatives by being forced to constantly follow-up to ensure milestones are being met. The Strategic Partner Leadership Model spells out the various roles, responsibilities, goals, and expectations of the partnering companies so responsibilities will be well known. Accountability, however, is an active management task.

  We must train our PDLs to be independent and self-accountable and expect that our partner’s representatives are just as professional and capable. This ideal state happens when our PDLs are proactive and they understand the goals and expectations of the partnership. Being self-accountable shows that the PDL is “in-tune” with the partnership’s needs and that they are able to proactively recognize challenges and address them competently.

  Competitive:

  The competitive juices flow high and strong within great PDLs. People who thrive in the PDL role are those who see a clear vision of a joint solution and are magnetically pulled to execute the pieces necessary that create a “win.” Strategic partnerships are forged out of a vision for creating a competitive advantage in the market so you “score points” against your competition.

  We all know that the game of business is really not a game. That there is no way to win in the long-run because business is perpetual—there is no game clock. However, PDLs see their goals and milestones as mini-games that allow their competitive nature to take over. They cannot help but make a game out of every scored metric because it feels like they are getting one step closer to securing a victory—the competitive advantage. Although all competitive advantages are finite in time, they give us a strong sense of achievement and we feel instantly compelled to find the next opportunity after one is achieved.

  Assertive:

  Being assertive is arguably the most critical yet least natural trait required of a PDL. Being assertive means that we are not afraid to immediately face conflict to sufficiently address issues before or as they arise. If one thing is certain in a strategic partnership, your partnership will face challenges and conflicts.

  Great PDLs excel at separating the emotional aspects of dealing with people and are able to distinguish business needs from personal attacks. Oftentimes people are quick to take comments personally and not understand the words for what they are—business ploys. However, the best PDLs are able to keep a level head an
d navigate communications without letting their emotions highjack their brains and their mouths.

  Being assertive allows for clear, direct, unemotional, factual communications that leads to respect and confidence. Nobody likes to be the bearer of bad news and confrontation is not a pleasant task. But as a PDL, being assertive is one of the greatest tools in making sure your partnership is a success. There is no doubt your partners will attempt to pull you in ways that favor their interest. This is fine when the benefit is mutual, but you will see that many times it is not. Be a good partner by providing value. But be assertive in drawing lines so you maintain a healthy balance. Otherwise, you do not have a partnership, you are a vendor, and that is the wrong universe.

  Resourceful:

  Being resourceful is key; after all, you found your partner because you are resourceful. Strategic partnerships can open many doors for your company and allow your organization to grow in ways you thought impossible. As we have established, strategic partnerships are a wildcard. These dynamic partnerships force us to swim through waters that are foreign to us. In the course of managing and leading strategic partnerships, you will undoubtedly face challenges, obstacles, and turbulent waters. Unfortunately, each of our newly formed strategic partnerships does not come with an instruction manual to guide us through our unchartered path. The value of being highly resourceful cannot be overstated. Partner Development Leaders act as the glue between the present and the future state of our strategic goals. The PDL must be able to find and deploy resources both internally and externally to overcome barriers.