Partnering for Success at Steria

Partnering is a tough proposition. At many technology companies, it’s difficult enough to collaborate effectively across business units, departments, and regional boundaries without throwing external partners into the mix. And yet past ITSMA research has shown that partnerships can significantly increase service revenue.

According to Mike Harding, head of cross-industry marketing at Steria, a European IT services firm with over €1.1 billion in revenue, the key question for Steria when it’s debating entering into a strategic alliance is, Is there potential for the two companies to build a successful differentiated services offering together? If the answer to this question is yes, the next step is to identify where the companies can work together to develop new business opportunities by outlining the joint value propositions and targeted industry sectors.

After that, he says, it’s all about expectations: “It’s really important for organizations that want to work with Steria to understand what would be the most suitable relationship for us both. [The big technology companies] often want to have a discussion with us about how much business we will be doing by quarter, how we are going to train our salespeople in their technologies, how we could run joint seminars with them, and so on. The answer to all of these questions is: We’re not. We solve customers’ business problems; we don’t provide them with technology X or Y. So, while we do resell hardware and software as part of our solutions, we don’t fit the traditional reseller model.”

Harding saves time and effort up front by thoroughly briefing would-be partners on how Steria does business. “We talk to them about which markets we’re in, what sort of solutions areas we’re bidding on, and how we work with our partners,” he says. One of the benefits of this approach is that certain companies realize that a supplier relationship makes more sense for them than a partner relationship. In addition, “some quite significant names are now putting relationship managers in place who understand how a services company works and what is required. The relationships have improved greatly, and our suppliers know that it isn’t all about quarterly volumes!”

If the briefings go well and it still seems that a partnership makes sense, Harding thinks about cultural fit. Key questions to consider include:

• How are people measured and rewarded? (“If you’re measured quarterly and I’m measured annually,” he points out, “we’re going to have problems working together.”)
• How is the investment treated? Will both parties invest similar amounts of time, budget, and resources?
• Are the channel strategies of the two organizations complementary?

“None of these things has to be a showstopper,” says Harding, “but it’s important to explore them up front and start thinking about ways to manage potential issues that may arise.”

Companies that make the cut and enter into partnerships with Steria are carefully assigned to one of four different levels:

• Candidate Partner
• Associate Partner
• Country Strategic Partner
• International Strategic Partner

Each level is defined by what a partnership of that caliber looks like, how it works, and so on. As a partner becomes more trusted over time, it moves up the ladder, earning the right to take on both greater risk and greater reward.

“Good partnerships develop over time, based on understanding, trust, openness, and a common purpose,” concludes Harding. “Things won’t always go smoothly, but there are things you can do to help to ensure that things hold together through some of the tougher challenges.”

With its process for partnering firmly in place, Steria is reaping the benefits of successful collaboration with its partners and building a stronger business step by step.

Comments are closed.

ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.