Partnering Just Ain't That Easy

by OnTarget

So you have a product or service. You've identified your target markets. You know what you're going to deliver to those markets. Now comes the big question: how are you going to bring that product or service to market?

If you're like most organizations today, the answer to that question is short and sweet: with partners. Since the requirements of today's global businesses are so complex and far-reaching, we rarely find a sales organization who can effectively "go it alone." Big or small...global, national or regional...most organizations find themselves driven -- through intense competition, increased cost of going to market and end-user demands for complete solutions -- to develop partnerships and alliances.

While there's no question about the necessity of partnering, an age-old question remains: how to choose the right partner? Read on.

Analyze the partner's product and services portfolio and capabilities
What does the partner bring to the party? That's the first step you should take: what are their product offerings, core competencies and market position? Then you'll be on your way toward understanding if this partnership can possibly bring value to both of you.

• Will this party provide value through its existing products, expertise and/or marketing penetration? Is there synergy between both party's products or services?
• Are they financially stable?
• Is there synergy between both party's organization and channel structure?
• What is this potential partner's base of business?
• What is this organization's current and future market direction?
• Does it align with ours?
• Do we share the same goals?

Define Expertise and Attributes
You're searching for a partner for a reason -- you want to increase revenue and marketshare. A valuable partner helps you do that -- through expertise and other attributes that complement your product offerings. You ideally want a partner that has a solid base of industry experts with access to and an understanding of the complexities of your target market. Together, the two companies should allow a branching into new market segments because of your complementary offerings.

• Do they add to your product or service within their existing market segment?
• Do they understand your market?
• Do they know who the players are and what competitive advantages each offers?
• Is your company lacking in expertise that this potential partner can provide?
• Do they extend your geographic presence?

Value-Added Resellers or Consulting-Oriented Partners
Do you need knowledge that your organization doesn't have to provide a total customer solution? Or are you trying to penetrate a new market? That's when partnerships with value-added resellers or consultants can really help out -- they can help expand your product's marketability and market reach.

When selecting a reseller or consulting partner, ask yourself:

• How does this organization add value to our product, market and/or sales strategy?
• Does their market position allow us entry into new markets?
• How is their reputation?
• Do they deliver on their promises?
• Do we share similar objectives?

What's Next?
Well, you've done your homework. You've chosen your partner. What now? "The ultimate value of entering into a partnership is to leverage your partner's core competencies, expertise and market penetration -- all while generating revenue for both parties," says Wendy Lea, OnTarget's Managing Partner for Channels and Alliances. "But it's not as easy as just choosing a partner. To move forward effectively, you must have a structured process for managing this partnership." Part of this process is the development of a joint go-to-market plan to facilitate partner performance that clearly outlines the roles and responsibilities of each partner. This will provide the necessary detailed insight for going to market with and through your new partner.

For more information about CHAMP, the Channels and Alliances Management Process, call (404) 965-1611 or visit our website at www.ontarget.com.