Partnernomics Read online

  PARTNERNOMICS

  The Art, Science, and Processes of

  Developing Successful Strategic Partnerships

  [pahrt-ner-nom-iks]: is the combination of the English word “partner,” which means “a person associated with another or others as a contributor of resources in a business venture sharing risks and profits” and the Greek word “nomos,” which means “the law,” or “the system of operation.”

  Mark Brigman, Ph.D.

  Founder & CEO of FIDELIS ONE

  LinkedIn.com/in/MarkBrigman

  FidelisOne.com

  PARTNERNOMICS Contributors

  BenPetersonDesign.com

  Ben Peterson

  Art & Design

  Stone Creek Consulting, Marketing

  Preston Bowman

  Melanie Bowman

  Ashleigh Bertrand

  Copy Editing

  Nigel Woodbury

  Videography

  Carol Knight

  Videography

  Michael Moore

  Photography

  Trademarks

  The marks SPLM™, Strategic Partner Leadership Model™,

  The Six Key Elements™, Vision Element™, Teams Element™,

  Goals Element™, Metrics Element™, Processes Element™, and

  Results Element™ are trademarks of Mark Brigman.

  Copyright © 2017 – Mark Brigman, Ph.D.

  All Rights Reserved

  ISBN-13: 978-1543176742

  ISBN-10: 1543176747

  ENDORSEMENTS

  “In today's business world, strategic partnerships are the fuel for exponential growth for companies large and small. Brigman not only brilliantly illustrates the unique benefits these business relationships bring to bear, but also provides a clear framework for establishing and nurturing successful partnerships.”

  — Stephen Whiteing, VP CenturyLink

  “Forging successful partnerships is transformative for any business. PARTNERNOMICS offers a first-of-its-kind, thoroughly researched and practical toolkit for developing and nurturing synergistic partnerships. Mark Brigman’s exhaustive study and life-long dedication to the subject inform this essential field guide to partnering. With this tactical and strategic advice, readers can realize the full potential of partnership, defying conventional sum-of-parts math to bringing extraordinary value to all constituents.”

  — Paul Scanlan, CEO Legion M / Co-Founder MobiTV

  “In PARTNERNOMICS, Dr. Mark Brigman challenges everything you thought you knew about starting, maturing, and maximizing business partnerships. Mark encourages us to replace transactional partnership thinking (like RFPs, POs, etc.) with strategic concepts like trust, esprit de corps, and the partnership pyramid. This fast-and-fresh book is packed with ideas for re-calibrating our traditional approach to business relationships. Read it before you continue to use old-school approaches in our rapidly evolving business environment.”

  — Dr. Lee Stuart, Leadership Programs – University of Kansas

  INTERACTIVE BOOK

  PARTNERNOMICS is a first-of-its-kind book in many ways. Not just because of its unique content and approach, but also the mechanisms for which content is delivered. You will notice a series of QR Codes and URLs printed in the Table of Contents and at the beginning of each chapter.

  The QR Codes look like:

  URLs look like:

  PARTNERNOMICS.com/intro

  Each code and URL will direct you to a landing page that contains video, audio, and other resources to support your use of the materials. I hope this new approach to consume content is engaging and adds value to your experience. If you would like to share comments, please feel free to contact us at http://www.fidelisone.com/contact-us

  You may download a free QR Code reader for your Apple or Android device from an app store. Or you can use your computer’s webcam to read the codes if you prefer to use a laptop or desktop computer.

  I invite you to visit www.FidelisOne.com to sign up to receive free tools and other helpful content as you look to grow your company and improve the success of your business partnerships.

  CONTENTS

  How To Use PARTNERNOMICS

  vii

  Acknowledgements

  viii

  Partnership Surveys and Statistics

  ix

  PARTNERNOMICS.com/intro

  Introduction

  x

  Part I

  Strategic Partnership Best Practices

  Chapter 1

  PARTNERNOMICS.com/C1

  Getting Your Mind Right

  Defining a Strategic Partnership

  Types of Business Partnerships

  Business Growth Continuum

  Procurement & Sales vs. Strategic Partnerships

  Traits of a Great Strategic Partner

  1

  Chapter 2

  PARTNERNOMICS.com/C2

  Partnership Success Pyramid

  Why Partnerships Fail

  Trust

  Alignment

  Transparency

  Esprit de Corps / Commitment

  Results

  23

  Chapter 3

  PARTNERNOMICS.com/C3

  Company Growth Evaluation

  Business Growth Opportunities

  Business Growth Options

  Thinking Strategically

  The Journey of Innovative

  Best Opportunities for Growth

  49

  Chapter 4

  PARTNERNOMICS.com/C4

  Strategic Partnership Approach

  Strategic Partnership Plan (SPP)

  Challenges and Roadblocks

  Non-Disclosure Agreement

  Finding the Right Partner

  How to Evaluate Potential Partners

  Traits of a Great Partner Company

  Negotiating a Win-Win Agreement

  77

  Part II

  PARTNERNOMICS.com/SPLM

  Strategic Partner Leadership Model™

  Vision Element

  Teams Element

  Goals Element

  Metrics Element

  Processes Element

  Results Element

  105

  Chapter 5

  PARTNERNOMICS.com/C5

  Vision Element

  Your Company Vision

  Your Company Mission

  Your Company Core Values

  111

  Chapter 6

  PARTNERNOMICS.com/C6

  Teams Element

  Partner Development Leaders (PDLs)

  Personality Profiles

  PDL – Team Approach

  123

  Chapter 7

  PARTNERNOMICS.com/C7

  Goals Element

  SMART Goal Approach

  Goals in Partnerships

  143

  Chapter 8

  PARTNERNOMICS.com/C8

  Metrics Element

  Types of Metrics

  Selecting Performance Metrics

  Designing the Scorecard

  Managing Your Scorecard

  153

  Chapter 9

  PARTNERNOMICS.com/C9

  Processes Element

  The McDonald’s Story

  Internal Change Process

  Identify Partnership Processes

  Process Design

  Implement Partnership Processes

  163

  Chapter 10

  PARTNERNOMICS.com/C10

  Results Element

  Management versus Leadership

  Partnership Success Pyramid Refresh

  The Executive’s Leadership Role

  179

  Part III

  Strategic Partnerships — The Full Outline

  187
<
br />   About the Author – Mark Brigman

  189

  About Fidelis One

  192

  Fidelis One – SPLM Program

  193

  Fidelis One – Workshops

  194

  HOW TO USE PARTNERNOMICS

  To the Strategic Partnership Executive:

  As the ultimate vision setter for your organization, I strongly encourage you to start your read of PARTNERNOMICS in PART II, the Strategic Partner Leadership Model (SPLM). After understanding the general makeup of the SPLM framework turn to Chapter 5, the Vision Element, and then read in order until you complete Chapter 10. It is important that you understand the 6 elements of the SPLM framework prior to your read of PART I.

  After you become oriented with the SPLM framework, skip to Chapter 2—Partnership Success Pyramid. Here, you will be exposed to the five imperatives for partnership success: trust, alignment, transparency, esprit de corps, and results. Consider your company’s current level of performance with respect to the partnership pyramid. Does your team embody the five imperatives? How about your current strategic partners, do they exemplify the imperatives? If not, what changes need to be made?

  After Chapter 2, move to Chapter 3 where business growth strategies are shared. Almost every business leader claims he / she would like to “grow his / her business,” but many struggle to find the best avenue for growth. Chapter 3 offers a business growth evaluation process with three unique tools to triangulate your “growth engine.” After Chapter 3, tackle Chapter 1 to “get your mind right” and finish the book by reading Chapter 4, a more tactical process that describes how your team will find and evaluate prospective partners and negotiate an agreement that will become mutually beneficial and offer a high likelihood of delivering significant results for your company.

  To the Strategic Partnership Team Leader:

  As the team leader your position is the most dynamic and challenging. You must fully understand the tactical management side of the “science” of strategic partnerships, but also be a relationship ninja and set the example for the “art” of partner leaderships. As the seasoned veteran, you must set the example of partnership excellence for your team, company, and partners. You have ultimate responsible for delivering results for the partnerships that your team oversees.

  Dig into PARTNERNOMICS by starting with Chapter 2—Partnership Success Pyramid. This chapter will orient your mind to the magical formula for ultimate success in strategic partnerships. This chapter shares terms, best practices, and success stories that build a clear mental picture of what every strategic partnership must embody in order to achieve significant results.

  After Chapter 4, step through the partnering process of Chapter 4 to gain exposure to potential new approaches to architecting partnerships. Then, move to PART II—Strategic Partner Leadership Model (SPLM) and read each chapter in order. Be sure to pay special attention to Chapter 6 (teams element) to explore the key traits and attributes for highly successful partner development leaders. You should hire, manage, and lead your team(s) based upon these traits and principles.

  Finally, finish the book by reading Chapter 1. Be mindful to challenge your own thinking and approach to partnering as you read the various components of this chapter. Finish the book by considering Chapter 3 which is focused on finding your company’s “growth engine” strategy.

  To the Strategic Partnership Team Member:

  As the member to your company’s strategic partnership team, your primary role is to manage the day-to-day activities of your partnering initiatives to ensure your partnerships are “successful.” Although you are likely an individual contributor in your position, you can be a leader. Let me take that sentence a step further. If you want to be great in your position, you HAVE to be a leader.

  My hope is that PARTNERNOMICS becomes your new best friend. I imagine it sounds conceded to write this, but I wish I would have read this book twenty years ago when I started managing and negotiating business partnerships. This book is packed with deep insights that surfaced through hundreds of conversations and centuries of combined experiences from this very specialized business discipline.

  I recommend that you start by reading Chapter 1 and fully immerse yourself into the text. Know that you may have to read the chapter a couple times to capture the full essence of the messages. I encourage you to challenge your thinking to partnering in areas where your current approach differs from the teachings of PARTNERNOMICS. And, be sure to discuss thoughts and questions that you have with your team manager. The book should spark lively and beneficial conversations.

  After Chapter 1, read Chapter 4 to get exposed to the tactical partnering processes. In this chapter the book covers recommendations to find and evaluate fit with potential partnership candidates. The chapter concludes with best practices for negotiating agreements with partners that will endure and provide great to the parties involved benefit.

  After Chapter 4, dig into Chapter 2—Partnership Success Pyramid. Here, you learn the five imperatives for partnership success: trust, alignment, transparency, esprit de corps, and results. Challenge your current thinking and evaluate your current approach. Think of way you can change your approach to more fully support and embody the five imperatives.

  Next, move to PART II and read through the Strategic Partner Leadership Model (SPLM) in order (starting with Chapter 5). The model includes a combination of tactical (management level) as well as strategic (leadership level) concepts for you to employ. Become a student of this model and use the framework to bring clarity to your position. Be sure to review the elements of this model with your team manager as you implement it with your various partners.

  Finally, review the content offered in Chapter 3. This chapter highlights the topic of business growth strategies. Although the responsibility of setting the strategy for profit growth is more closely with your CEO and team manager, it is important for you to understand the content in this chapter and continue to position yourself for professional growth. I hope you find great value in PARTNERNOMICS!

  ACKNOWLEDGEMENTS

  First, I would like to thank God for the many blessings that I have received. I would like to thank my lovely and amazing wife Tiffany; without her support and positive encouragement this book would not have come to completion. Every day she makes me want to be a better person—thank you! I would like to thank our children, Jesse, Tyler, Isaac, and Kayla for all of their encouragement and my parents Bill and Wanda for starting and supporting my addiction to business.

  I would like to dedicate this book to all past and present members of the U.S. Armed Forces. Without your efforts and sacrifices to do a job that many people are unable or unwilling to do, our amazing country would not exist. Thank you! Semper Fidelis!

  I would like to extend a special thank you to the 100+ senior business executives that participated in my research interviews. Your time, insights, and recommendations were instrumental in the creation of PARTNERNOMICS and I am indebted to you.

  I would like to extend a sincere thank you to my graphic artist Ben Peterson (BenPetersonDesign.com). Ben, you have stuck with me for many years, at all times of the day and night, for countless projects. Your talent, friendship, and support cannot be matched by any monetary value. I appreciate your efforts and our partnership more that words can express. Thank you!

  Last but certainly not least; I would like to thank Dr. Chuck Ambrose and Dr. Laurel Hogue from the University of Central Missouri. I appreciate our partnership that brings valuable business growth content to business leaders across the US. Your leadership and actions to redefine practical education will continue to receive national attention as it sets the standard for other educational institutions to follow.

  PARTNERSHIP SURVEYS & STATS

  In a CMO Council report, 85% of C-level business leaders view partnerships and alliances as essential or important to their businesses, but only 33% report having a formal partnering strategy in place.

  At
the 2013 ARPAE Summit in Washington D.C., according to ARPAE’s research, 90% of CEOs are very interested in forming strategic partnerships in order to advance their businesses; however, only 65% stated they had experience in managing such relationships.

  When looking at all business sectors, the number of strategic partnerships has been growing 25% per year since 1985. These partnerships consistently produce a return on investment (ROI) of close to 17% among the top 2,000 companies in the world for more than a decade. That rate of return is 50% more than those same companies’ average ROI (Journal of Accountancy).

  A 2016 research article published by MIT’s Sloan Management Review and the Association of Strategic Alliance Professionals found business success to be positively correlated with partnering success.