Hartford Business Journal

www.HartfordBusiness.com April 18, 2016 • Hartford Business Journal 21 THE RAINMAKER Key considerations for strategic partnerships By Ken Cook F or many smaller businesses, the allure of partnering with another complementary service provider is compelling. Small companies want to become bigger companies. When you identify someone who serves the same market as you and offers services that complement what you offer, there is a natural inclination to think about combining resourc- es and efforts, at least to some degree. Why? Better ser- vices for customers; more revenue oppor- tunities by cross- selling to each firm's respective base of customers; stronger market position and messaging; a larger number of competi- tive advantages. While the allure may be great, let me offer some guidelines to consider before you say yes. Clearly answer two questions: What is the purpose for getting together? What is it that each partner wants out of the relationship? There are many potential answers to these questions, some good and some not so good. A few good answers include: Satisfying previously unmet customer needs through the partnership arrangement. Creating mutually beneficial revenue growth for each partner. Allowing each partner to expand their mar- kets; in essence, 1 + 1 = 3. Always bear in mind the customer's perspective. Customers, when first introduced to a part- nership arrangement, are naturally asking a very simple question: "What do I get out of this?" A strategic partnership makes sense if the parties provide products, services or support that enhances the offerings to the customer. The cus- tomer is almost always operating in a "what's in it for me" mode. Define the value of the partnership from that perspective, because frankly the cus- tomer doesn't care what the partners get out of it. Test the partnership with customers and prospects. Don't assume. Validate. Talk to customers whom you trust, and ask them their perspective on the partnership. What value would they expect to receive from the partnership's offerings? Talk to prospective customers. Ask them if the partnership enhances the offerings and makes them more inclined to do business. Take your time. As in any good relationship, trust is the most important factor to establish. Trust takes time to develop. Consider working in a trial period with clear- ly defined parameters. For example, carve out some test customers who would be willing to be "beta" sites for the partnership. Offer the test customers considerations in exchange for their honest and open feedback on their experiences. What value do they receive from the part- nership that they would not have realized oth- erwise? Is that value worth it? What would they change about the partnership in order to enhance the experience and the results? Communicate and learn. Establish clarity and methodology around how the partners communicate, both with each other and with the customer. Partner- ships directly impact the customer's expe- rience. If the partners are not clear in how they work together and communicate with each other, the inevitable result is a negative impact for the customer. Don't let the cus- tomer get caught in the miscommunications and disagreements of the partners. Also, partners need to learn everything they can about each other. Great partner- ships evolve to the point where each partner can talk about their partner's business as well as they can talk about their own. Bottom line: The customers are the ultimate determinants of whether a partnership makes sense. Don't let the allure of an internal perspec- tive on the benefits of a partnership overshadow the realities of the marketplace, and the custom- er experience. After all, partnerships are meant to improve things for everyone. Constantly test to make sure that is happening. n Ken Cook is the co-founder of How to Who and co-author of How to WHO: Selling Personi- fied, a book and program on building busi- ness through relationships. Learn more at www.howtowho.com. Ken Cook BIZ BOOKS Simple strategies to increase efficiency "T he Daily Edge: Simple Strat- egies to Increase Efficiency" by David Horsager (Berrett- Koehler Publishers, $24.95). Our lives reflect our choices — many of which result from our routine, which puts responses on a Pavlovian autopilot. At work, autopilot doesn't always work well because so many things interrupt routine and thereby reduce productivity. Horsag- er's 35 tips focus on forming better habits within our rou- tines so that interruptions minimize the damage done to output and outcomes. Here are some highlights: Tip 2. "Difference-Making Actions (DMAs)" — Before you head to work, write down your day's most important goal and the five prioritized DMAs needed to make it happen. Your DMAs should rely only on what you must do, because you have no control over when and how others will respond. During your commute, think about how you'll accomplish your DMAs given the context of your day's sched- ule. This helps you prioritize your workday. During the day, keep your list visible to remind you of what must be done. After completing a DMA, cross it off your list. Tip 9. "Excellence, not perfection." — Because too many outside factors affect execu- tion, there's no such thing as perfection. Trying to identify and deal with "what-ifs" plays into the law of diminishing returns. This drives paralysis analysis, which delays decisions and execution — and takes time away from other tasks. Excellence, on the other hand, deals with the "what is." It requires concentration without interruption. Also, you have to distinguish between changes that make things better ver- sus different. When you reach the better-versus-different tipping point, the project is finished. Tip 22. "Mind mapping" — A picture rather than a list makes it easier to envision a project's elements. Take a sheet of paper and write down what needs to be accomplished in the center; circle it. Draw and label some major branches (i.e. thoughts on steps and potential obstacles). Add action and idea "eaves" to the branches. Add "vines" to connect actions and ideas to complementa- ry branches. Your completed, compartmental- ized mind map allows you to visualize tasks and their priorities within the project. Key takeaway: "Whatever you think about the most, you're bound to do the most." • • • "Workplace Poker — Are You Play- ing the Game or Just Getting Played" by Dan Rust (Harper Business, $25.99). Hard work and talent aren't enough to get ahead. You have to learn how to play office politics (OP), the "game within the game." To many, OP means backstabbing, gossip- ing and playing the "blame game." To Rust, it means staying true to your values while cre- ating interdependent relationships through an understanding of the company's business model — and the ability to toot your own horn without blowing it. Those who successfully climb a career ladder view their job descriptions as the foundation of a make-it-happen plan. It details the "what," but not the "how." They understand that it's the how that sets them apart from others just as talented. As I read the many sto- ries of how, I recalled mine: I was in the Ford Motor's college graduate train- ing program along with several newly-minted MBAs. My first man- ager asked for a volunteer from his group of five newbies to write departmental proce- dures. Writing procedures wasn't the glam- orous job a new MBA envisioned. Only one hand went up, mine. Why? I understood the game within the game. Writing procedures would allow me to interact with staff, man- agers and executives in other departments whose operations were affected. I would learn the business model from various per- spectives and people would get to know me. As I rotated through other areas, I was given front-burner projects because I knew how things worked and the people who made them work. Over time, part of my brand became "dot connector." You won't find that in a job description. The Bottom Line: "Those who claim to hate office poli- tics are really just frustrated because they suck at it." n Jim Pawlak is a nationally syndicated book reviewer. Jim Pawlak ▶ ▶ Because too many outside factors affect execution, there's no such thing as perfection. Trying to identify and deal with 'what-ifs' plays into the law of diminishing returns. ▶ ▶ Don't let the allure of an internal perspective on the benefits of a partnership overshadow the realities of the marketplace, and the customer experience.

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