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Why ARM

ALLIANCE RELATIONSHIP MANAGEMENT

5 FOUNDATIONAL CONCEPTS

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#1

Alliances are Businesses

New alliances are start-ups. Start-ups require investors. Investors demand a clear pathway to achieving an acceptable rate of return: How much, when and with what risks.

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Before committing resources in a new business venture an investor requires a compelling, credible and thorough business case. A business case developed using an ARM application delivers what an investor wants to know.

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#2

Planning Matters

  • “Plans are worthless…but planning is everything.” – Dwight D. Eisenhower. Eisenhower isn’t saying “don’t bother to plan.” He is saying that the process of planning is more important than simply creating a document. An ARM led planning process:

    • Challenges problem solving techniques and tolerance for conflict

    • Tests the partners’ trust in the “alliance first” principle

    • Pays dividends, before things go wrong.

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#3

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Nothing Happens Till
Someone Sells Something

#3

  • A shared vision driven by expensive talent that operate in a highly collaborative and trusting environment means nothing…without results.

  • So, the first order of a new alliance business, as with any start-up operation, is to close key accounts with urgency.

  • Guided by an ARM developed  tactical plan this is an all hands on deck pursuit led by the sales team with unconditional support from key executives.

No Alliance is Without Risk

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  • As with other businesses, an alliance is subject to the same categories of risk: Internal and External, but with the additional category of PARTNER.

  • Joint business-case planning exposes alliance vulnerabilities alongside new opportunities.

  • New alliances require frequent and compulsory joint operational reviews and vigilant executive oversight from both partners.

  • An ARM led plan review teases out weaknesses and means to repair them.

#4

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21st Century Alliances
Require 21st Century Tools

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  • An ARM system is purpose-built for alliances and enables fact-based decision making to better manage alliance partnerships. Key business capabilities:

    • Insight into alliance ROI and breakeven of investment decisions

    • Forecast and track resource requirements

    • Predict and track revenue and profitability of alliance initiatives

  • Attempts to use features/functions of CRM and PRM systems to manage alliance partnerships fall far short of what an ARM system requires.

#5

ARM vs. CRM vs. PRM

THE DIFFERENCES AND BENEFITS ARE NOT SUBTLE

In the absence of a purpose-built ARM (Alliance Relationship Management) system businesses are using some of the features/functions of CRM (Customer Relationship Management) and PRM (Partner Relationship Management) systems to manage aspects of their alliance partnerships such as sales tracking and product certification. But those systems fall short of what an ARM system is designed to perform and deliver.

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For comparison purposes the key features and capabilities of ARM are positioned along side CRM and PRM.

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