Partnerships NOW: Positioning Partner Ecosystems

In this edition of Partnerships NOW , we're diving into a topic that's pivotal for the future of business—positioning partner ecosystems to leadership. As ecosystems are projected to generate $100 trillion of value, representing one-third of the global economy by 2030, the potential impact is immense. Despite this, many CXOs remain unaware of the significance of ecosystems, the crucial role that partners play, and the necessary investments to maximize their benefits.

Partner managers are uniquely positioned to guide their companies through this transformative business model, fostering growth, innovation, and resilience. This edition aims to equip you with some knowledge and strategies to effectively communicate the value of partner ecosystems to executives, upper leadership, and board members. Through actionable strategies and real-life examples, we hope to empower you to advocate for the strategic importance of partner ecosystems within your organizations.

Join us as we explore how to champion the value of ecosystems, ensuring that your organization is ready to leverage this powerful approach for future success.

What are key ways partner ecosystems can be positioned as a strategic advantage to CXO's?

"Some salespeople consider partners a nuisance that are hard to manage, get too much margin, and are a barrier to the customer. However, across the technology industry partnerships are an executive-level concern and are embraced as a strategic weapon. An effectively engaged, empowered, and managed partner ecosystem:

• is a prime vehicle for revenue growth as partners have deep relationships with customers
• extends market reach where you don't have resources
• provides a full product solution of hardware, software, and services to the customer
• is considered a competitive advantage as you lock competing products out of these routes to market" - Diane Krakora , PartnerPath

"In today's interconnected business environment, partner ecosystems are becoming a crucial strategic advantage, and it is important to have complete buy-in at the C-suite level.

Here are key ways to position partner ecosystems to them as a strategic advantage:

1. Co-innovation for a Better Client Experience Joint R&D Projects: Collaborating on research and development initiatives can lead to groundbreaking products and services that neither company could develop alone. Shared Technology Platforms: Integrating technologies from different partners can create more comprehensive and powerful solutions for customers. Innovation Labs: Establishing co-innovation labs with partners fosters an environment where creative ideas can flourish and be quickly prototyped.

2. Engaging with Partners in Your Client's World Industry-Specific Expertise: Partnering with companies deeply embedded in specific industries can provide insights and solutions tailored to those markets. Referrals and Joint Go-to-Market Strategies: Encouraging partners to refer clients to your business and collaborating on market strategies and specific campaigns can drive growth.

3. Access to Previously Unobtainable Markets New Revenue Streams and Market Expansion: Partners with an established presence in markets previously out of reach can open new revenue opportunities.

4. Focus on Core Competencies Streamlined Operations and Increased Efficiency: Managing your ecosystem strategy properly allows your company to concentrate on foundational strengths while partners handle complementary pieces of the customer solution. Invest capital in your own IP and team.

5. Positive Brand Exposure Through Ecosystem Partners Brand Association: Associating with reputable partners can enhance your brand’s credibility and attract new customers. Co-branded Marketing Campaigns: Joint marketing efforts with partners can reach wider audiences and create a stronger market presence.

Positioning partner ecosystems as a strategic advantage involves leveraging co-innovation, complementary services, industry-specific partnerships, market expansion, focused core competencies, competitive differentiation, and positive brand associations. For the C-suite, understanding and investing in these partnerships can lead to significant business growth, enhanced innovation, and a stronger competitive position." - Kristine Stewart , Spur Reply

What metrics or KPIs should be highlighted to demonstrate the impact of partner ecosystems on company growth?

"It is every channel professional’s job to elevate the impact of partnering in their organization. That means partnering must have an impact on the organization and others need to be aware of the effect partnering is having on the organization.

Here are 5 key (less useful) metrics most organizations are measuring:

1) Number of partners in the ecosystem

2) Revenue through partners (resold)

3) Partner sourced revenue

4) Number of partner people trained

5) Partner satisfaction

These are 5 trending KPIs to measure partner impact:

1) Partner enablement

2) Customer satisfaction with partners

3) Partner contribution

4) Partner engagement

5) Partner profitability

To be truly successful in partnering, not only do you have to generate an impact, but you also have to communicate that impact internally and externally – to executives, shareholders, partners and analysts. We believe the infrastructure and systems to measure performance is critically important to any partnering success. You need data to show the impact your partnering efforts are having on the organization." - Diane Krakora , PartnerPath

What are common pitfalls to avoid when pitching a partner ecosystem to executive team?

"Communicating the value of the partner ecosystem to the C-suite is a challenge that many partner leaders face especially in suboptimal economic conditions. Here are a few pitfalls to avoid when pitching the value of your ecosystem to the executive team:

1) Don’t make assumptions – As ecosystem leaders, we live partnerships day in and day out which makes it easy for us to assume that others have a similar frame of reference. Do not make that assumption, often our executive teams are not familiar with the terminology we use or the value an ecosystem drives. It is likely that there will be a level of education that will need to happen to ensure everyone in the room has an ecosystem frame of reference.

2) Unclear of alignment – Executives need to quickly understand the alignment that the ecosystem has with company goals, vision, and strategy. Ensure that your talk track has a concise storyline as to how your ecosystem aligns with and can optimize the company priorities.

3) Vague measurement and accountability – Nothing speaks louder than the numbers. Be prepared with a clear narrative for defining and tracking key performance indicators (KPIs) if you can bring historical data and projects that is even better. Consider leveraging case studies or other examples from successful ecosystems in similar organizations as additional data points.

4) Ignoring potential challenges – Ecosystems are complex and can bring a unique set of challenges that require resourcing and operational support. Be upfront about what is needed to mitigate risk and to support your asks.

Taking your ecosystem value and asking your executive team can feel daunting, but proper preparation will ensure you walk in with confidence. Remember that most people do not have your robust partnering knowledge so a level of education will be needed to create a solid foundation for your conversations. A compelling ecosystem narrative aligned with your company objectives will aid in gaining the commitment you need. Addressing challenges proactively and presenting a well-thought-out plan will improve the likelihood of gaining executive buy-in for your ecosystem initiatives." - Raegan Wilson, MBA , Spur Reply

How can partner ecosystems help penetrate new markets or regions?

"The advantages of partners in new regions is far bigger than scale alone when considering the trusted connections those partnerships can extend to their closest vendor partners. Partner ecosystems are an age-old solution to geographical expansion (think ancient travelling traders) due to their extended reach, local knowledge, and ability to offer a speedy entry into new markets. A benefit often overlooked is the trust they have long earned with customers. The investment made by a vendor in a close and connected globally dispersed ecosystem harnesses an army of trusted people within the potential customer base. Whilst you are still on the outside of the city walls, the partner is receiving a hero's welcome at the market inside." - Amy Roberts , PartnerPath

What strategies can be used to leverage partner ecosystems to strengthen the company's brand?

"Leveraging partner ecosystems will strengthen your company's brand and gain a competitive edge.

Here are some ideas to begin benefitting from your ecosystem:

? Strategic collaboration, co-branding, and innovation will enhance the visibility and reach of your brand.

? Integrating products and services will lead to greater product efficiencies and ensure seamless customer experiences, fostering loyalty.

? Engaging in joint research and development will establish your company as a technology leader, while unified support and customized solutions will improve customer satisfaction and brand reputation.

? Participation in industry events and collaborative publications will solidify your position as a thought leader.

? Offering partner training, sharing success stories, and showcasing testimonials will build credibility.

? Implement revenue-sharing and incentive programs to motivate partners to promote your products and drive growth.

? Lastly, focus on community-building and strategic alliances to enhance the value proposition." - Jessica Baker , AchieveUnite

How can competitive benchmarking be used to demonstrate the advantages of a robust partner ecosystem to C-level executives?

"We all know that a robust partner ecosystem accelerates innovation, enhances efficiency, expands market reach, and generates revenue. It's utter madness that gaining the budget required to accelerate or transform the partner engagement program can be tough to secure. Competitive benchmarking can help! We’ve all peeked over the fence, haven’t we? Admit it—those lush, emerald lawn partner programs next door beckon like forbidden fruit. Is their grass greener? Smarter? Or, heaven forbid, synthetic? This age-old curiosity can help you to secure C-level support and investments when you provide an objective view of your performance versus the competition." - Amy Roberts , PartnerPath

"Competitive benchmarking is a crucial tool for showing the benefits of a strong partner network to C-level executives. By identifying key performance indicators (KPIs) such as revenue growth and market share, along with information about go-to-market (GTM) models, organizations can compare their performance against competitors and the top-performing companies. Using these insights, executives can make informed decisions about investing in and improving their partner ecosystems, ultimately driving business success and gaining a competitive advantage." - Jessica Baker , AchieveUnite