Partnernomics

by Mark Brigman

  It is absolutely imperative that we set goals throughout the strategic partnership process. In Chapter 4, we learned to create a Strategic Partnership Plan (SPP) prior to engaging potential partners. As you might recall, the SPP is a simple document that speaks to the “who,” “what,” “where,” “when,” and “why” that we intend to form a strategic partnership. Any one of these areas can speak to your intended outcome, your goal. By explicitly producing and sharing the SPP, all members involved with your company’s partnering initiative will understand how “success” is defined.

  The goal element is where we look to establish clarity, both internally and externally, in order to maximize our opportunity for success. We will use our SPP as a starting point to more clearly define our goals for each strategic partnership. We originally used the SPP document to identify and communicate our strategic needs with prospective partners. Now we simply need to solidify our goals given the follow-up conversations and collaboration sessions that have transpired with our strategic partner and others.

  We will want to identify both internal and partnership goals as part of this element. It is likely that the two sets of goals will be the same, but that is not necessarily a requirement. Both sets of goals should be aligned and complementary, but your organization may have a specific goal that only you control and are privy to its management and outcome. By establishing, communicating, and managing the goals of your partnership, both parties are able to track success on a continual basis.

  I am a sucker for great motivational quotes. The great business leader J.C. Penney was a strong proponent for personal development within his massive organization. Many claim his support of personal development was a key reason that his department store chain became such a huge success. Mr. Penney offered many quotes that have been well cited over the decades. Below is my favorite J.C. Penney quote that speaks to the power of goal setting:

  “Give me a stock clerk with a goal and I will show you a man [or woman] who can make history; give me a stock clerk without a goal and I will give you a stock clerk.”

  Another quote that I like is one offered by Jim Rohn, author of seventeen business books. Rohn said, “Finding is reserved for the searchers, not the wishers or hopers.” He addresses the power of goal setting in several of his personal development books. He argues that if we do not set goals and work toward accomplishing our milestones (search), we are simply wishing and hoping that success finds us, and more often than not, it won’t.

  “SMART” Approach to Goal Setting

  Over the decades, it seems that researchers have studied the art and science of goal setting and accomplishment from every angle. Whether we are looking at personal performance initiatives or large corporate strategies, both include goal setting and goal tracking as a best practice. In a 1981 issue of Management Review, George Doran was the first to introduce the “SMART” approach to goal setting to the management world.

  In the acronym SMART, each letter represents an imperative to setting a meaningful goal. Over the years, people have taken the liberty to substitute some of their own recommended changes by identifying a new replacement word or two that still results in spelling SMART. The most widely used set of attributes of SMART that I have found, and the ones I prefer most, are specific, measurable, attainable, relevant, and timely.

  Specific: Goals that are well defined have a much greater chance of being achieved. When a goal is sufficiently specific, it conveys the “who,” “what,” “where,” “when,” and “why.” By this time, our leaders have already communicated the “why” to the organization and it is up to the PDL (“who”) to identify specific goals and articulate a plan as to “how” the goals will be accomplished. We call this ownership and avoidance of micro-management, AKA Leadership 101. Whenever possible, we want to tie numbers to our goals, ensuring that our goals are specific and clear.

  Goal descriptions, just like research methods, fall into one of two categories: quantitative or qualitative. Quantitative goal descriptions require that we assign a number to an intended outcome. Whereas, qualitative outcomes are much more generalized. When setting goals, be as specific as possible. Therefore, we will always use quantitative measures over qualitative whenever possible.

  For example, which of the following three goal descriptions would be the most specific and, therefore, offer the clearest picture of what is to be accomplished?

  Get into better physical shape by running more miles per week

  Complete a half-marathon with my friend by the end of next year

  Complete the Orlando half-marathon in less than two hours before age 40

  Yes, you picked it. #3. This goal defines the who, what, where, and when so that we can easily envision the image of success. If we were to choose a description such as #1, we leave much open to interpretation. Perhaps your definition of “better physical shape” means decreasing your per mile run time by two minutes while my definition is more like 30 seconds. Identifying goals that are specific will help eliminate any ambiguity and greatly improve alignment across people, teams, and companies.

  Measurable: As we look to identify specific goals to act as our pavestones toward long-term success, select goals that can be measured. Many qualitative characteristics such as beauty, success, innovation, likability, loyalty, etc. can be difficult if not impossible to measure because they are subjective. In order for a goal to be meaningful, we must have a method to measure success.

  We can determine if a goal is measureable by asking ourselves if a specific number can be used to define the target. For example, reach $10 million in gross revenue, close 100 new deals, or reduce customer care calls by 30%. Each of these goal-setting examples illustrates ways we can use a quantitative approach to define a target. At the end of the specified time period, we can easily tell if we accomplished the goal or not.

  Attainable: This attribute speaks to having the scientific possibility, qualifications, and wherewithal to achieve the goal. We have heard “anything is possible if you just put your mind to it.” Well, I hate to spoil the party, but some science experiments fail and they always will. No matter how many times you put a concrete block into a lake, it will sink. We must ensure that we have the qualifications and credentials to achieve specific goals. It will be hard for us to launch a legal firm without a law degree or a dental practice without becoming a board certified dentist. I know these are goofy examples, but hopefully they get the point across.

  When setting goals, it is a good idea to set ones that force us to stretch our minds. A solid goal requires that we explore new means to accomplish an envisioned achievement. If we constantly settle for incremental gains, we will have only incremental thoughts. Goals should motivate employees, unite teams, and spark a competitive spirit. Great goals will foster rallying cries among teams. Our goals, however, must be within the realm of possibility. Otherwise, they have the opposite effect. Outlandish goals will kill morale, demotivate employees, and cause conflict among co-workers.

  Relevant: The primary intent behind goal setting is to provide our organization with a logical pathway to meaningful growth. By selecting goals and milestones that are relevant to our company’s vision and mission, we ensure alignment throughout every step of the journey. After your company goals are initially created, be sure to give a final test of relevancy by describing each goal’s strategic alignment to your company’s vision and mission statements.

  Although we want to have grand, audacious goals, it is important that we realize all of the competing pressures that exist. Jim Collins and Jerry Porrus teach us the great power that a “big hairy audacious goal” can have on an organization in Built to Last. But their example of a goal is a vision goal. They are describing the big summit goal that our company is aiming to accomplish in ten or more years. What we are looking for here are annual goals. We want targets that we will achieve within the next twelve months that are perfectly aligned with our mission and our long-term company vision.

  We want to sel
ect goals that force us to reach beyond our present performance levels while being realistic about the resources that are currently at our disposal. As with most elements in developing a plan, less is more. Rather than create a mountain of goals that nobody remembers a week after they are solidified, select as few goals as possible so they remain memorable, but enough goals to accomplish critical parts needed to grow your business.

  Remember, you executed a strategic partnership agreement because your partner has capabilities that your company does not. Be sure you assign goals or milestones (sub-goals) that support your company’s deficiencies. After all, your deficiencies are what made your partnership attractive in the first place. Relevant goals ensure that every step taken is productive.

  Timely: Goals serve many purposes, but one of the most important is accountability. Goals force us to prioritize our resources and align our daily activities to ensure that our collective efforts will build value for our customers. It is imperative to set a deadline for every goal that we set. Deadlines act as a measuring stick to help us prioritize our competing initiatives and due dates organically foster collaboration to facilitate progress.

  Having deadlines tied to each goal gives our teams a clear picture of the puzzle pieces that are in play. By following the due dates, every team member can see the interdependencies of individual work efforts and understand the sequence for accomplishing the big yearly wins. Most major goals have a deadline of December 31st—year-end. It is easier for our brains to associate the “scoreboard clock” to the calendar, so it seems many executive teams like to focus on having major goals be year-end goals.

  Inevitably, the general sense of urgency kicks into full swing around Thanksgiving as teams turn up the dial to finalize the year-end projects. Hopefully the month of December is not a perennial Chinese fire drill at your company. If it is, ask yourself why. Honestly, for most companies that I have worked with, December 31st is the only marker of accountability for goals that are enforced. If you find that your company falls into this same trap, consider breaking the annual goals into quarterly goals, or, at a minimum, make the goals tie back to a quarterly or monthly benchmark with accountability. The key is having some measure to drive real accountability.

  Goals in Partnerships

  It is important to realize that strategic partnerships, by their very nature, contain many unknowns. Remember, we are partnering with another organization that has an expertise or capability so that we may leverage it and achieve a competitive advantage. By definition, this new, innovative approach means that we understand only in general terms what the possibilities are and what our general approach should be. As we solidify goals for our strategic partnership, remain mindful that some of our goals may be fluid and new goals will become clearer as our relationship evolves.

  The following table offers a simple yet effective illustration of a goal sheet. Most strategic partnering agreements have specific duties that have been addressed. Obviously those goals will need to be incorporated into your goals sheet. It is critical that each goal be defined for clarity’s sake. For example, in the case below, we would want to clearly define what “live” means for each goal. Be sure to specify only one owner and ensure you include a deadline. This goal sheet should be updated on a regular basis and be communicated to all interested parties. The goals sheet will be the subject of regular communications meetings where it will be updated. As a general practice, I use the colors green (on target), yellow (at risk), and red (behind schedule) in the “Goal” cell to denote current progress.

  #

  Goal

  Internal / Partnership

  Who (owner)

  When (deadline)

  1

  Have systems A & B live

  Partnership

  Dan Smith

  11-1-17

  2

  Training videos live

  Partnership

  Sally Hill

  11-15-17

  3

  Achieve 1 million downloads of “X”

  Partnership

  Tim Kelly

  12-31-17

  *Intentionally Left Blank

  CHAPTER 8

  PARTNERNOMICS.com/C8

  Metrics Element

  NOTES:

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  Metrics Element

  The metrics element of the SPLM focuses on performance data to help us lead our partnering initiative to success. Have you ever wondered why your car has so many gauges
? It seems the modern day vehicle actually has its own brain. I love the new technology: remote start from your phone, Bluetooth music, hands-free calling—love it. Most cars manufactured nowadays have a gauge or digital display for everything: fuel level, oil pressure, engine temperature, speedometer, tachometer, tire pressure, battery voltage, washer fluid level and several others. Not only do we have these gauges that illustrate actual levels, but we also have warning lights and sounds to ensure that we know when a particular gauge reaches a critical level.

  Several years ago I had a fuse that went bad in my car. This mishap caused several of my gauges, including fuel, to stop working. Wow, what a pain that was. For the three days that it took me to diagnose the issue and get it fixed, I felt lost. My choices were to refuel every day or track miles and hope that I didn’t run out of gas. Unfortunately, that is how most companies manage their strategic partnerships—on hope, not gauges.

  By identifying specific metrics or key performance indicators (KPIs), we are able to more effectively manage our operations and partner’s performance. By identifying, tracking, and communicating critical metrics, we can ensure that all pertinent people know current performance levels and if we are on track to accomplish our stated partnership goals. Managing partnership performance metrics is simply an extension of the industry best practice of managing operational performance metrics within our own company, which I hope you are already doing.