Practical Partnering

[Article placed on website: October 2003]

There are signs that business activity in the telecoms sector is picking up. Exhibitions are beginning to 'buzz' again. Those involved in the Enterprise sector say corporates have money to spend on information and communication technologies (ICT). Many people are busy. After cutting costs and paring back staff, vendors are chasing opportunities. Individuals are stretched. Some tell me they are 'maxed out' – no time for anything new, no luxury to be able to sit and think.

If this mood of optimism continues it will be good news for our economy. We may at last be making tentative steps towards the long-awaited '3G world'. The predictions about what life will be like in the New ICT Economy may begin to be realised. There will be an increasing amount of co-operation between telecoms and IT. Those companies that plan for this evolution and ready themselves to exploit it will be successful. Those that don't make the time to "sit and think" will lose out.

So it was encouraging when, at the end of September 2003, a group of ICT businesses did turn out to learn about the issues and challenges they face in the new economy. A half-day workshop organised for the newly-formed West Midlands IT Association addressed the topic in three segments:

1. A summary of what the new ICT economy will be like and implications for partnering.
2. Presentations by two major ICT companies with bases in the Midlands, explaining what they are looking for from smaller firms – firms that these larger companies want to collaborate with in order to address the major new business opportunities that the new economy brings.
3. An exercise in which the workshop attendees discussed what are the most important activities and actions that firms should be paying attention to now, so as to prepare themselves to take maximum advantage of these opportunities.

As workshop attendees learned, the demands of the new ICT economy will change the way that organisations co-operate. No longer will there be a simple, easy-to-understand value chain. Instead, the delivery of product and service to the end customer will engage a variety of players working together in a 'value web'. Working out where your firm wants to engage in the value web, and in what markets, is a key challenge facing all businesses.

So this group of firms, who had taken time out to "sit and think", came up with some valuable learning points. Having listened to the presentations and asked questions in open forum, they had the chance to debate the issues with their fellow workshop attendees, compare experiences and decide what they need to do next. This is what I would call 'practical partnering' – the output of individuals who will now go back to their workplaces and attempt to put these key activities and actions into practice.

So what were these key activities and actions? Well, some of them are fairly obvious. Others you may already be doing. There may be one or two in the list that leap out at you as something that your company is not paying enough attention to. Perhaps in some cases your organisation is just paying 'lip service', saying in its literature and company statements that these things are important, but in practice not giving managers and staff the time or incentives to properly address them.

Finding the right partners in the New Economy …

What are the key activities that firms should be doing?

• Understand your unique selling propositions (USPs)
• Identify your core competencies, find your niche
• Be clear about your capabilities and define customer needs
• Improve marketing – develop a communications strategy, raise profile
• Develop contacts in niche markets – networking
• Build relationships with other suppliers in the market you operate in
• Identify skills required by partners
• Set partnering objectives, agree them and measure them
• Develop a product/services portfolio suitable for a range of relevant partners

Making your company "partnership ready" …

What are the most important steps firms should be taking?

• Improve understanding of your own markets and the end customer proposition
• Be precise about what you bring to a relationship (your "uniqueness") and how it would fit with a partner – e.g. develop a template Heads of Agreement/MoU
• Determine what you want out of a partnership (your objectives) and define this clearly
• Set a timeframe and framework for partnering, to achieve the vision of the business through goal setting and measurements
• Invest in working with other organisations, learning how to work together
• Build an infrastructure for delivery – people, ownership, sponsorship, decision-making – flexible and responsive

For a detailed summary of the West Midlands IT Association (WMita) workshop click here. The WMita website is at www.wmita.co.uk.

Partnering Points on Practical Partnering

• The activities and actions listed above are in priority order. Do one or two at a time. Address the most important items first.
• Before you embark on a plan to improve your organisation's partnering skills, ensure you know how you are going to measure progress, and that senior management endorses your approach.
• Set yourself targets that are stretching, but achievable. Don't raise expectations too high. Accept that sustained improvement will take longer than you think.
• Seek out other individuals or organisations that do not directly compete with you but are operating in the same market(s). Share information and experience. Learn from each other.
• Consider bringing in outside help, to critically review your plans, recommend changes and assist in their implementation.

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