PDM Readiness Strategy and Structure

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Myron Hunt
6 years ago
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2 PDM Readiness Strategy and Structure Onboard the PDM role with the necessary business development skillset and capability to drive deep engagement with Partners to enable short term and long term success Engage Develop Sustain Establish practice and business development fundamentals Build knowledge skills, and develop strategic capability Continuous learning and support to accelerate talent development Online Learning and Pre-Work Applied Learning & In-Person Workshop Knowledge & Skills Evaluation Next Steps & Ongoing Learning (pull-through)

3 Business Development Methodoloy Recruit Identify new cloud opportunities, assess a partner, and build a business plan Develop Identify roles to hire/train and how to design, price & package offers Launch Implement industry & GTM strategy, and optimize sales process Grow Retain & grow customers and develop opportunities to extend cloud services Recruit Getting Started Understand the priorities, your role, and how to engage with Partners and OCP roles Assess your partner s capability to develop a business plan Understand the importance of building IP and Industry focus Drive new partner growth opportunities Learn the fundamentals of financial assessment, and P&L impact Learn the fundamentals of offer design & pricing strategy Create a partner business plan Develop Develop talent and offer design strategy Design, price, and package offers Build digital marketing & optimize sales channels Enable partner to detect, build and drive demand, build P2P strategy Hire, onboard, and develop Cloud professionals Understand the roles required to expand business model (resource plan) Move to the develop phase Launch and Grow Move to the Launch and Grow phase Implement Industry GTM strategy and partner with GTM resources Operationalize leads and optimize sales processes and P2P Retaining & grow customers and markets (CLV) Identify and leverage cross-sell and upsell opportunities Ongoing learning Workshops, community engagement, and ongoing coaching to develop PDM capability

4 Building PDM Business Development Skills Online Learning Paths & Workshop Approach Establish business development fundamentals through online curriculum Practice advanced concepts learned through online learning paths with peers DAY 1 Assessing Partner Business Model Economic Model Assessment Develop Industry Solution Offers Workshop Agenda DAY 2 Drive demand thru Digital Marketing Optimize Sales Process Build a business growth plan

5 Vision Alignment Partner s Goals + Strategies = Their Vision & Outcome Microsoft s Goals + Strategies = Our Vision & Outcome Overlap the Outcomes and Create a Set of Durable Vision Statement Actions that guide the ongoing business value to working together

7 Our Focus. Improving Partner Win Rates Interpreting the Partner Profile Assessment Impacting the Partner P&L Assessing Partner Marketing & Messaging

8 Industry Partner Win Rates 80% >3 Industries (service) 20% 1-3 Industries (teach) 50% 1 Industry (disrupt)

9 Strategic Tipping Point STP STP Qualify Develop Solution Proof Close Emotional Discovery BDM Whiteboard BVA Workshop Solution Demo Proposal Presentation

Partner Engagement Process 1 Partner Assessment Identify focus and P&L Impact 2 growth 3

Business Plan, what do you expect your revenue composition and margin structure to look

Existing Revenue Streams Gross Revenue Gross Margin (%) ($) Professional Services,

0% Reselling - Microsoft Software (one-time) $665,500 15.

0% n/a $0 0.0% n/a $0 0.0% n/a $0 0.0% sub totals/averages $6,122,600 33.

0% Own IP Licenses - Cloud Subscriptions (recurring) $200,000 70.

11 Partner Engagement Process 1 Partner Assessment Identify focus and P&L Impact 2 growth 3 priorities 4 Joint solutioning exercise 5 Business planning Tomorrow Based on your Business Plan, what do you expect your revenue composition and margin structure to look like in 3 year's time? Existing Revenue Streams Gross Revenue Gross Margin (%) ($) Professional Services, Project Based (one-time) $5,324, % Reselling - Microsoft Software (one-time) $665, % Managed Services - Contracted Support (recurring) $133, % n/a $0 0.0% n/a $0 0.0% n/a $0 0.0% n/a $0 0.0% sub totals/averages $6,122, % New Revenue Streams Reselling - Microsoft Subscriptions (recurring) $300, % Own IP Licenses - Cloud Subscriptions (recurring) $200, % Managed Services - Contracted Support (recurring) $100, % sub totals/averages $600, % Total Revenue $6,722, % COGS $4,454,480 Operating Expenses $ Sales $450,000 Marketing $350,000 R&D $150,000 G&A $690,000 Total Operating Expenses $1,640,000 EBITDA ($) $628,120 EBITDA (%) 9.3%

13 SI Partner Profile - Customer Acquisition Capability

14 SI Partner Profile - Solution Maturity

Partner Segmentation Low Solution Maturity/Low Customer Acquisition New to MPL, high potential Low customer adds, low industry focus Low Solution Maturity /High Customer Acquisition Early

15 Partner Segmentation Low Solution Maturity/Low Customer Acquisition New to MPL, high potential Low customer adds, low industry focus Low Solution Maturity /High Customer Acquisition Early movers/bitc, high growth Low customer adds, low revenue (cloud) High Solution Maturity/Low Customer Acquisition Large transactions, slow growth Low customer adds, high revenue (OP) High Solution Maturity/High Customer Acquisition Established partners, limited influence High customer adds, high revenue

16 Exercise Team Exercise Partner Profile Assessment Adjustment Team Creation: Organize into teams of three (maximum) based on partner focus: ISV, SI, MSP, LSP, Disti Adjust the Partner Assessment to reflect the realities of your local market and typical partner profiles.

23 Partner Value Delivery/Differentiation Differentiated Relevant to Advisory Competitive position Services Needs of customer Solutions Undifferentiated Irrelevant to Commodities Market Pricing Premium The Experience Economy Pine & Gilmore (2011)

25 SI Partner Profile

26 Starting P&L

27 Revenue Stream Options

28 Considerations. Will margins on existing revenue streams decline? What new revenue streams will they develop? What are their new cloud offerings? What margins will the new offerings command? How much will need to be invested in sales, marketing & R&D? What should an MPL look like after three years? Revenue? Gross margin? Solution mix? G&A?

29 Exercise Team Exercise Partner P&L Transition Adjust existing Revenue Streams and Gross Margin % to reflect local realities Adjust Operating Expenses to align with existing partner profiles Discuss & debate changes that drive an improved P&L in three years time. What NEW cloud services are required? Teams have 30 minutes to complete the task. One team from each partner profile will have the opportunity to present their recommendations. Volunteer early.

30 Exercise Team Exercise P&L Model Reviews One team from each profile reviews: End state partner P&L Core assumptions Anticipated challenges & risks 5 7 minutes/team

31 Cloud Business Model Transition Source is JB Wood, Technology Services Industry Association

32 Want More.

38 Take Aways Exercise Key Learning Elements What landed today?

Vision Alignment. Partner s Goals + Strategies = Their Vision & Outcome. Microsoft s Goals + Strategies = Our Vision & Outcome

Vision Alignment. Partner s Goals + Strategies = Their Vision & Outcome. Microsoft s Goals + Strategies = Our Vision & Outcome Vision Alignment Partner s Goals + Strategies = Their Vision & Outcome Microsoft s Goals + Strategies = Our Vision & Outcome Overlap the Outcomes and Create a Set of Durable Vision Statement Actions that