In May of 2014 I will be marking my 30th anniversary in the IT industry. While I’m proud to say that I’ve survived this long and have enjoyed myself tremendously, I know that this admission dates me quite a bit. The reason I bring this up is that over the span of three decades there is one term that I have seen frustratingly abused more times than I care to remember. It is a designation shared by two companies that connotes cooperation and unity but fails more times than it succeeds. That term is business partner. Too often I’ve seen this description used between organizations where the relationship was overwhelmingly lopsided and advantageous to one party more so than the other. Where one side used the other as an arm for lead generation but did little to earn the leads they acquired. Where agreements were entered into with little thought given to the strategic benefits such a union would foster for both sides equally. As a result, a great deal of time and resources were misspent on a collaboration that should have never been entered into in the first place. Most were hastily cobbled couplings to which no measurable increase in business growth or market penetration could be attributed. Creating a set of circumstances that were completely avoidable if certain criteria had been met before either side considered signing on the dotted line.
Now, lets fast-forward to February 2012 and the birth of Blue Agility and our premier business partner relationship with IBM Rational Software. While most things in my life didn’t take 30 years to reveal their value, in this particular case it has done just that. It’s taken the better part of my professional career to witness first hand a business partnership that actually works the way both parties imagined it would. Having experienced its benefits directly I now feel compelled to share 4 key elements that define why it has been so successful and how to duplicate similar success for any organization evaluating potential comrades in commerce.
1) Make sure your missions are aligned.
From it’s inception and every day since, Blue Agility has taken great pains to define and hone what we do best, the markets we thrive in and customers who benefit most from our core capabilities. Without a thorough understanding of this it is almost impossible to decide who would make the best business partner. If you don’t have a firm handle on your own goals as a company how can you ever truly know which business partner aligns closest to your vision statement? Our vision statement guides us everyday. It keeps us honest and laser beam focused on where we are headed.
Blue Agility’s Vision Statement:
To make it commonplace for enterprises to deliver solutions focused on business value that defines market-leading performance.
Understanding our mission was critical in selecting IBM Rational as the company with whom we would most fittingly go into battle. When stripped down to its barest components our two organizations adhere strongly to the principle that software development excellence provides a competitive differentiator in our customer’s markets, and the key to that success is rooted in the integration of people, process and tools. Blue Agility and IBM Rational go to market committed to this ideal and seek to help our customers realize their true potential. The people, are, of course our customers resources, the process we evangelize is Agile and the tools we rely on to make all of this work are the Rational JAZZ suite of collaborative life cycle management products. This combined commitment to the problems we aim to solve and the markets we serve best is the baseline of the partnership’s continued success. I firmly believe that a similar commitment to closely aligned missions will serve your organization’s present and future partnerships as well as it has served ours.
2) Have clearly defined rules of engagement.
Another critical element of a strong business partnership is a clearly defined road map on how to engage. Knowing without hesitation when it makes business sense for the companies to collaborate on an opportunity that allows both parties’ core competencies to flourish. It’s also very important to know exactly how to involve the appropriate resources to make this happen. I know this sounds obvious and fundamental however it is too often overlooked in these relationships and often clouds the engagement from the very start. When IBM Rational and Blue Agility work on a project together we immediately involve the best resources to advance the opportunity. You rarely get a second chance to make a first impression. One of the best ways to avoid making a bad first impression with your customers is to be in lock step with your business partner. Knowing when and how to engage goes a long way toward creating the best possible circumstance for that first call and those to come as the deal matures to closure.
3) Have clearly defined roles and rewards.
This essential ties in closely with #2 above. Knowing who will do what and what the reward for that participation will be when the deal closes is known as beginning with the end in mind. Which is a best practice in any endeavor but especially when it comes to business. At the end of the day we are all in this to make customers successful and as a direct result grow our respective companies. When business partners engage on any call it is vital to know up front where and how the revenue for each organization will be awarded. Without this understanding why would either party engage valuable resources. When IBM Rational and Blue Agility begin a conversation about an opportunity one of the first things that is understood is who will do what and what the revenue opportunity for that involvement will be. This best practice leads to a coordinated approach to the customer’s problem that allows both parties to deploy the full force of each of their skills and gets each party paid for what they do best. As deals mature things may look very different than they did on that first call. However, having a contractual bond that describes who gets what provides the fundamental framework for each party to stay focused on why they are there and what they can expect if everyone does their job well. Make sure when selecting any business partner that there is a well-defined compensation plan that will govern your joint engagements. Nothing can unhinge an otherwise powerful partnership faster than disputes on how each party will be paid after the deal has already closed. Blue-Agility’s partnership with IBM Rational is a perfect example of how this predefined framework can work to benefit of both companies and foster the level of commitment that is required to excel and advance these highly complex sales cycles.
4) Have executive sponsorship that fosters an environment of trust.
Once each party is comfortable with the contractual arrangement it serves both companies to know that these terms and conditions will be upheld and supported at every turn by the executive management on both sides. There are circumstances that will arise on any deal that will test the strength of the partnership and its governance. However, a well thought out contract, that is equally beneficial to both sides, serves as the constitution by which all issues are adjudicated. Will there be instances where addendums need to be drawn up or exceptions granted due to unforeseen challenges? Absolutely! That is the nature of business and life. Few things ever go exactly as planned. To keep these challenges from spiraling into greater issues they must be addressed in an environment of trust. As they rise up the chain of command to their ultimate resolution cooler heads must prevail. Having executive sponsorship that supports the agreement, understands why it exists and what it hopes to accomplish will usually result in an outcome to problems that satisfies everyone involved. So be certain when considering your next business partner that you have the executive sponsorship necessary to ensure swift and equitable problem resolution that adheres to the original intent, purpose and spirit of the engagement. The sooner issues are resolved to everyone’s benefit the faster every one gets back to work closing more business.
So there it is. The four key elements of why Blue Agility’s premier business partnership with IBM Rational continues to thrive and prosper to the benefit of both companies and most importantly our customers. I firmly believe that if these four elements are seriously considered and executed when choosing your next business partner, you will enjoy success and satisfaction for many years to come.
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