This post is #2 in the series, Starting in Partnering: What most Tech CEOs get wrong. Click here to read #1 “Not Recognizing the Partnering Journey – What most Tech CEOs get wrong when starting in partnering”
After working directly with 100s of tech companies starting their partner programs, I’ve tried to summarise some regular wrong assumptions and gaps.
Not Aligning Partnering Strategy and Business Strategy
Leadership teams spend much time deciding on their business growth plans, target customers, sectors, application areas, regions and customer acquisition plans.
With Direct Sales being the priority focus, the company’s Partnering Strategy is too often directed into greenfield regions; Regions with no experience for the company or in how the Customer needs may differ, into a market with many unknowns. Partnering is already a new learning journey for the company, now they must navigate the unknowns of a new market also. Why are partnering teams thrown into the deep end on the path of most unknowns?
Misaligned Growth by Acquisition Strategy with Partnering Strategy
If the business is growing by acquisition, then Partner Recruitment plans & Company Acquisition plans need to be aligned and not siloed. What type of company are they seeking to partner with as opposed to acquire? If they’re the same, then the company will end up competing directly with partners, causing problems for the partnering team. OR will acquisition target company types add value to partners as opposed to competing with them?
Disconnected Exit Strategy, Shareholder Value Growth and Partnering Strategy
If the company’s shareholders are planning a trade sale, then this has implications for the Partnering Strategy.
Firstly, with over 50% of company acquisitions having prior partnerships, shouldn’t the company be seeking to partner with potential acquirers?
Secondly, having a presence, with partners, in a greater number of markets demonstrates a greater platform for growth and boosts shareholder value.
Many leadership teams don’t see the connections between these things and set out different teams to solve these seemingly unrelated challenges, causing problems and disrupting each other’s success. For example,
The best teams align the partnering strategy to their business objectives; aligning Direct Sales, Acquisition Strategy, Exit Strategy and Partnering Strategy from the start and not avoid these issues. They find how partners can accelerate their current plans, and not a tagged-on plan with little thought or expertise applied. Partnering is about working with other companies to boost your capabilities to meet your objectives. Alignment is key to success.
NOW, read on with the next in the series: Culture: Direct Sales Mindset Fighting a Partnering Mindset – What most Tech CEOs get wrong when starting in partnering #3