Agile Alliances: Core Principles

In a recent conversation with an executive at Avalara , the market leader in tax software and automation, we began to discuss one of their core values; Adaptability. She had worked at IBM while they were acquiring us at 红帽 and was curious about what that sea change looked like from our perspective

I was characteristically direct and forthcoming with my response. Day one there were a lot of tears and day two most long term Red Hatters started to entrench themselves against the coming integration. "They'll never turn Red Hat blue" was the order of the day. But, day three an interesting thing happened.

To fully understand what happened next, you need to understand that Red Hat perfected the open source way of not only iterating on crowd sourced code, but actually managing the entire company and all divisions within it in the Open Source way. Jim Whitehurst , our CEO at the time, coined the term "The Open Organization" and authored the NY Times best seller of the same title (recommended brain food). As a Red Hatter, it was important to:

1. Share all data and opinions openly
2. Make rapid decisions and buy in completely even if your idea wasn't selected
3. Execute quickly, fail fast and iterate

So it wasn't all that surprising that's what my team started doing on day 3. We forgot about the doom and gloom and the industry FUD predicting the downfall of Red Hat, and lean into the opportunities this change was going to present for our partner ecosystem. The team jumped into brainstorm mode and developed a set of initiatives jointly with IBM to focus on top revenue generating partners at each company which were not currently working with the other. Sign them, train them and get them transacting business ASAP. Sure, we had a few failures at the outset, but because of the aggressive head start we took those became quick learning that guided our improvement. Soon we were growing new partner logos and new partner sales before the acquisition had even been completed.

I share this with you to demonstrate the value of adopting the core principles of Agile in your alliance and trusting the process, even if it feels a bit unplanned and chaotic at the start. There are four key principles you should focus on as you begin this transformation:

1. Individuals and Interactions Over Processes and Tools
2. Working Software Over Comprehensive Documentation
3. Customer Collaboration Over Contract Negotiation
4. Responding to Change Over Following a Plan

Individuals and Interactions Over Processes and Tools:

• Focus on People:??While processes and tools can be helpful,?strong alliances are built on the relationships between the teams involved.
• Open Communication:?Regularly share information,?concerns,?and ideas to avoid misunderstandings and foster trust.
• Trust-Building:??Invest time in activities that help team members from both sides get to know each other and build rapport.
• Collaboration is Key:??Encourage teamwork and a shared sense of purpose to achieve common goals.

Working Software Over Comprehensive Documentation:

• Move Quickly:?Don't waste time on overly detailed plans or lengthy documentation that might become outdated.
• Focus on Outcomes:??Break down goals into smaller,?achievable projects with clear deliverables that demonstrate progress.
• Iterative Approach:??Work in cycles,?delivering functional results frequently.?This allows for adjustments based on feedback and learnings.
• Adapt and Improve:??Use what you learn from each iteration to improve the alliance's overall effectiveness.

Customer Collaboration Over Contract Negotiation:

• Shared Vision:??View the alliance as a joint venture with a shared goal of serving your target market.
• Customer Focus:??Regularly gather feedback from both sides of the alliance to ensure initiatives are aligned with what your customers truly need.
• Flexibility in Agreements:??Contracts are important,?but leave room for adaptation based on changing customer needs and market conditions.
• Win-Win Mentality:??Negotiations should focus on mutual benefit and long-term success,?not just short-term gains.

Responding to Change Over Following a Plan:

• Embrace Change:??The business world is dynamic.?Be prepared to adjust your alliance strategy as market conditions,?customer needs,?or priorities shift.
• Learn and Adapt:??Use challenges and unforeseen circumstances as opportunities to learn and improve your approach.
• Open to New Ideas:??Encourage a culture of experimentation and be willing to try new things based on real-world results.
• Agile Mindset:??Maintain a flexible and responsive approach that allows the alliance to thrive in a changing environment.

Adopt that Agile mindset and start implementing these principles immediately. You'll fail fast, but you'll quickly get the hang of it and be leading your alliance with a pace and adaptability you never imagined to behemoths could achieve.