Building Symbiotic Partnerships
April 8, 2022 was a special day, possibly for many reasons, but certainly for one reason in particular. That was the date that BPMA presented its 108th Product Executive Forum on the ninth anniversary of the founding of the PEF. BPMA began the PEF program in April of 2013 and the program has been going strong ever since, offering important topics, informative presentations, and engaging conversation.
This month’s presenter was Neil Baron, Managing Director at Baron Strategic Partners, and the topic was “Going to Market with Partners”. As with previous PEF sessions, the ultimate goal was to offer practical and actionable information that would enable attendees to be more successful in their careers. As such, Neil began his presentation by offering the following characterization of a successful partnership:
Mutually beneficial relationship focused on cooperative efforts to accelerate complementary goals.
Many partnerships begin with a connection that might grow into a productive alliance. At the same time, a more planned approach based on a program strategy can be equally effective. Alliances can exist across a spectrum, one end of which might be characterized as opportunistic or transactional, with the other end represented by tightly integrated and highly dependent alliances. An example of the first that was offered was that of McDonald’s and Pepsi’ joint foray into the Chinese market. While each partner stood to benefit substantially from a successful effort, the level of integration between the partners was limited, and each could continue operations as before should the effort not succeed.
An example of the second that was offered was that of Apple and Corning Glass in their joint initiative to develop the iPhone. In this instance, the new business that was envisioned was entirely dependent upon the successful integration, organizationally and technically, of the two partners. Should this joint venture fail, there would be no business.
In the end, the hallmark of a successful alliance is the delivery of, or an increase in customer value. Three impact areas were identified, including the offering, marketing, and sales, and it was noted that a partnership that addresses these impact areas in meaningful ways ensures that current and new customers will realize the value they seek.
After the presentation came the usual break-out sessions. Each break-out group was asked to consider questions about their organization’s partnership programs. The breakout I in which I participated considered programs that charge participation fees. One member of our group suggested that charging participant fees seemed contrary to the spirit and objectives of a mutually beneficial partner program. On the assumption that both parties decide to participate for mutual benefit, participation fees would benefit one party over the other. This would be particularly true at the outset of the partnership, as it typically takes time for such programs to get off the ground and become productive. It was then pointed out that the party offering the program incurs upfront and ongoing costs to do so, and it would not be unreasonable for that party to seek to offset those costs.
It was noted that there should be alignment among the partners. Each partner must first determine where the alliance lands on the relationship continuum, from purely transactional to both partners succeed or fail together, and then all parties must agree on the nature of the relationship.
Finally, a series of questions was presented, the answers to which can provide guidance and inform the process of planning for and implementing a successful partnership program, Some of those questions are:
What are alliance objectives?
Are participant’s value propositions aligned?
How to account for and manage competition among participants?
What is the right level of investment?
