6 Steps To Building Partner Relationships in a Disruptive Cloud Economy
It’s been a couple of months since I last posted and, admittedly…I needed a bit of a break to go into full sponge mode. I don’t know about you, but I am super excited about the amazing advances, services and sheer number of choices customers have when it comes to managing their business. The adoption of the cloud is changing everything…wicked fast. This can be really exciting…and butt-pucker scary. This is especially true when it comes to the business of traditional IT.
I am not saying anything new…the move to the cloud has given traditional IT Hardware and Software Vendors fits for some time. But it doesn’t stop at the vendor level…the issue compounds as it extends to the channel, which is experiencing major heartburn as it pivots to address one of “the most disruptive forces in computing history”, according to Gartner.
Companies that sell hardware and software to corporate customers are all threatened by this shift. They really can’t sustain this lifestyle business because companies large and small are opting for shared servers and pay as you go models. It also messes with their compensation plan — sales organizations that are used to a resell and maintenance model (with frequent hardware refresh cycles) are having a hard time converting to a recurring revenue model. The accounting is different, and there is no big check at the end of a long sales cycle. In fact…the end of the sales cycle is just the beginning. The good news is…that is not a bad thing. Once started down this path, the snowball can get bigger…very quickly.
Now is the time where old relationships will get tested, and new relationships will be created. The basic fundamentals of partnering really won’t change, but since sales cycles are different, and the overall act of selling becomes more consultative — addressing business challenges rather than IT challenges — now is the time to pivot. And many companies are doing just that. It all starts with building and maintaining trust. Below are some foundation pieces to focus on. By the way…these are also relevant to “born in the cloud” partners. Take a look and see for yourself…
Trust vs Performance
If you were to ask any channel professional to name their go-to partners, they’ll rattle a handful off the top of their heads. Ask them why…and they will cite trust as the foundation of their long term relationship. That makes sense…because over time, things have occurred to test that relationship and the culmination of many events has proven the strength of the bond. In this fast moving cloud economy, it is more important than ever to establish lasting trust. Trusted relationships translate to better performance. The question that you need to ask is, what comes first? Trust or Performance? As many businesses are making a pivot from a traditional selling model to the new cloud model, performance will likely suffer in the short term. As investment and initiatives start to roll out, Trust becomes the force that keeps the momentum going.
Competency
This is a must on both sides. However, it goes beyond simply having the skill…it requires that you deliver what you say you will deliver. Performance rarely comes first…trust is something that is given, therefore, the real effort lies in not LOSING trust. It starts with honesty — making people believe that not only CAN you do something, but that you will DO it. And yet…having the required competency alone isn’t enough to build long term trust.
Co-Operation
Looks weird spelled that way, but it illustrates the intent. Co — as in “together” — putting the operation in motion. How you interact with each other on a day to day basis is a major tell for the future of a partnership. How you treat your partners — especially during stressful times, or the inevitable friction, is what matters in the relationship. Pay attention to the way you handle the daily challenges — especially in the beginning of a new partnership — it sets the tone for the long term.
Have a Plan
Align your strategic and tactical plans. Take the time to work this out and spend time with each other. Build the plans together. This is not an easy task, but it is absolutely necessary. The more time spent sharing goals and objectives, the less time spent being confused. This takes patience, commitment and joint planning sessions to identify goals and tactics to execute strategies on both sides. This level of engagement leads to a more fulfilling relationship, crossing the chasm from a Transactional Relationship to a Full Partnership — where both parties are invested.
Set Great Expectations — Just Be Clear About Them
Raise the bar by setting clear expectations on what you both want to accomplish. Identify gaps in skills or process, and put an action plan together to tap into resources, training and procedures that will get you over the bar. This level of communication is great for identifying the real priorities driving behavior, both good and bad. Frank discussions about how differing priorities negatively impact the overall goal does wonders to bring the partnership back on track. Refer back to the plan…focus on the strategy, and commit to doing what is necessary to achieve the overall goal…or pivot.
Track Progress
Probably the easiest ask…and the hardest task. Measuring activity is absolutely crucial to proving success early in the relationship. It requires discipline with both parties — and considering the tools at our disposal, it should be simple. It’s not. There are tons of reasons why deals don’t get entered, but none of those reasons matter when you are scrambling to close a deal or find information to respond to an urgent request. Reasons don’t pay bills. Make it simple…if it isn’t in your CRM — it didn’t happen. Action can’t be taken on it, and asks don’t get responded to. Apply discipline each week, keeping pressure on to turn that big gear. Just remember that it is hardest in the beginning, but once it starts to roll, momentum takes over. Don’t give up on this!
There is so much happening in our industry today…and so much more to unlock. And yes…I take my own advice. I am focused on building and maintaining trust and as I put my team together, and we will be focused on exactly these foundation pieces. There is much to do, but I can’t wait until next year…to look back on everything we accomplished this year…together!
Shift your view.
m-
