the secret sauce for successful collaborations

The Secret Sauce for Successful

Collaboration

Norma WatenpaughPrincipal, Phoenix Consulting Group

Global Board, ASAP

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Dutch Tulip Growers who collaborated the most – were the most successful

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WINNERS COLLABORATE

70% CEO’s intend to partner more extensively -

Out performers out partner by 28%

IBM Survey 2012 1700 CEO’s in 64 countries

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COLLABORATION IN THE SKILLS GAP

#1 trait CEOS look for in employees; 70% citing it as crucial

#2 fatal flaw in CEOSHbr.com2014

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04/07/2023The Secret Sauce for Successful Collaboration

Reasons to Partner

New Product DevelopmentIn-Source InnovationAccess to IP/ExpertiseTransform IndustriesDisruptive Business Models

Expand into new MarketsIncrease Customer SatisfactionCompetitive AdvantageGeographic ExpansionCo-Branding

Logistic EfficienciesReduce Time to MarketLeverage Shared ResourcesCost ReductionRisk Mitigation

Innovation Growth Efficiency

What is a Partner?

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Trans-action Out-sourcing ChannelOEM or

LicensingContract Alliances

Virtual Joint

Venture

Joint Venture M & A

Degree of Collaboration

A collaborative business relationship between two or more entities that share assets, expertise, risks, rewards, and control to create greater value for their customers and for their own organizations than could be efficiently accomplished independently.

Crucial Ingredients

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Champion

Culture

CompetencyCapability

SUCCESS BEGINS AT THE TOP

STRONG EXECUTIVE SPONSORSHIP IS CRUCIAL

• Sets the Strategic Vision

• Advocates the Value

• Fosters a Culture for Collaboration

• Last Stop in Escalation

• Organizational Navigator

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Partner Lifecycle FrameworkBuilds Enabling Business Processes

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Partner Life Cycle

Alliance-Specific Strategy

Analysis & Selection

Building Trust & Value

Operational Planning

Alliance Structuring & Governance

Launching & Managing

TransformInnovate

Exit

Source: ASAP Handbook of Alliance Management


Strategies and Techniques for Alignment

Sta

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All

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Ch

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Exe

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Corporate Strategy

Alliance Strategy

Alliance Value Prop

Operational Plan

Individual - Roles, Responsibilities, Motivations, Rewards


Innovative Business Model Lilly Partnership for MDR - Tuberculosis Defining the Challenge: Patient Compliance and Prevention Creates a different ecosystem than just ‘cheap drugs”

Treatment, Training &

Surveillance

Community Support

Patient Advocacy

Workplace Awareness & Prevention

Transfer of Technology & Drug Supply

Int’l Council of Nurses, WHO, World Medical Assoc. US Disease Control and Prevention

Red Cross, Red Crescent

TB Alert, TB Survival Project

World Economic Forum, Business Alliance to Stop TB

Aspen Pharmacare, SIA Int’l, Purdue University

Patient

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WIN/WIN/WIN PartnershipsPartner Math: 1 + 1 > 3 How do you benefit from the partnership?

How does your partner benefit?

How does the partnership create greater customer value?

What is the likely result if one of the value propositions is weak?

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Best Practice Guidance:Three-way value propositions are the foundation of sustainable partnerships


PARTNER BUSINESS MODEL DRIVES FINANCIAL VALUE – SOLUTION PROVIDER EXAMPLE

Revenue Source Basis Revenue Recognized

Product Resale Margin or Referral Fee

10% of ASP* $50,000 $5,000

Cross Sell Opportunities 10% of ASP $5,000

Customer Training 20% of ASP $10,000

Implementation Services 100% of ASP $50,000

Consulting Services 300% of ASP $150,000

TOTAL $220,000

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* Average Selling Price

Alliance Team Charter When everyone is on the same page -

This is the page

Sets up the common vision for the alliance/initiative

Joint team activity- People support what they create

Sets expectations and builds trust

Sets standards for behavior through operating principles


Alliance Core Values/Operating Principles Govern How the Team Works Together and Shapes the Alliance Culture

1. Focus: On the customer and creating superior added-value 2. Commitments: Meet commitments and milestones on time 3. Communications: Open, honest, proactive and timely 4. Changes: Notify quickly & honestly 5. Decision Making: Quickly, team ownership, based on rational risks 6. Champions: Stay ahead of things, sustain momentum 7. Relationships: Build solid, long-term relationships based on trust 8. Problems: Address problems before escalation, fix quickly 9. Ethics: Promote Environmental Responsibility and Business Ethics 10. Support: Help each other out when necessary 11. Spirit: Create opportunities for growth & breakthroughs 12. Flexibility: Change with the times and new pressures

Source: Rolls-Royce Starfish Alliance


Stakeholder AlignmentHow does behavior change with commitment and accountability?


Competency for Collaboration

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- Conflict Resolution- Cross Function

Team Management- Influencing Others- Leading without

Authority-- Problem Solving &

Critical Thinking-Cultural Sensitivity

- Strategic Alignment

- Selection & Qualification- Governance

- Metrics- Alliance

Negotiations- Co-opetition

- Fostering Collaboration

- Industry Trends- Business Strategy

-Marketing Processes

-Sales Processes-Change

Management

-Lead & Influence -Take Initiative

w/Little Supervision-Strategic/Global

Thinkers-Network across Org Boundaries

-Flexible-Innovative/ Resourceful

People Oriented

Soft Skills Business Knowledge

Core Skills Aptitudes


Influences on Culture

Culture

Leadership

Processes

Norms & Values

Behaviors

Control Structures

Influencers

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WHAT IS A CULTURE FOR COLLABORATION

Win-Win Attitude Empathy Diversity is the source of

Innovation Confrontation is the starting

point for Collaboration Flexibility Commitment Lead with Trust

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“In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”

Charles Darwin

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Go Forth and Partner

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and Prosper!

We specialize in best practice partner strategies, programs, and marketing. We help companies transform their partnering practices to drive corporate growth, innovation and build shareholder value.

Companies we have served:

www.phoenixcg.com ph:1 408 848 9514 email: [email protected]

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