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Huawei’s Strategy for Partnering Success (Part One): Tapping into the ASAP Community’s Best Practices, Professional Development, and Tools

Posted By Genevieve Fraser, Monday, March 5, 2018
Updated: Saturday, March 3, 2018

Decades before Greg Fox, CSAP, assumed his current position as vice president of strategic alliances at Huawei Technologies, headquartered in Shenzhen, Guangdong, China, he held senior strategy, channels, sales, alliance management, marketing, product management, and business development positions at Citrix, Cisco, Novell, and HPE. For the past two years, Fox has lead Huawei’s efforts to build information and communications technologies (ICT) industry-leading alliance management competencies and global partnering capabilities. Today, Huawei Technologies is the largest telecommunications equipment manufacturer in the world.


“Having a strategic alliance background has provided a competitive edge with prospective partners. In fact, strategic alliances are quickly becoming a core part of the Huawei culture and an embedded part of our business strategy,” Fox stated.


“And with Huawei’s global market leadership in key markets involving carrier, consumer, enterprise and now cloud, many companies want to do business with us for mutual business advantage. It is a nice problem to have, but that makes it ever more important that we do partnerships the right way, and we set them up for the long-term,” he explained.


Given the magnitude and scope of their current level of partnerships, Huawei has developed a tier-one companywide process called Manage Alliance Relationship (MAR) that focuses exclusively on managing the alliance relationship process. This includes traditional 1:1 alliances, as well as managing one to many and many to many partnerships.


As Huawei has adopted many of ASAP’s best practices and tools for partner evaluation, recruitment, and on-boarding, the alliance management organization has created many templates within the MAR process. These templates and tools are actively used in every current or prospective strategic partnership and have afforded Huawei a competitive edge in cultivating its growing portfolio of partnerships.


“We have a straightforward approach outlined by a five-step process to executing mutually profitable partnerships and as we follow this, we feel that we can improve the odds of success and ensure that all parties profit,” Fox said.


“The first step involves partners agreeing on a common set of objectives and a strategy for achieving them and being clear on what all sides get from the alliance. Next, partners must write out a business plan, including determining who is our customer, why will they buy from us, and what is our expected ROI [return on investment]. Third, partners must install governance structures that assign key responsibilities, clarifying who is responsible for what, and which has an identified sponsor who is senior enough to mobilize resources and change course if things go off track,” he said.


“Step four involves creating proper incentives for both the direct sales force and indirect channel, with compensation designed to get all parties to make the alliance a priority. And finally, every partnership should be flexible, and alliances must be reviewed quarterly to help leaders respond to changing business conditions,” Fox explained.


The five steps are not performed once and then set aside. Instead they are done in an iterative loop, where processes are refined, and targets regularly adjusted as needed, based on every changing competitive environment.


To learn more about Huawei’s partnering efforts, see Part Two of this blog as well as Genevieve Fraser’s Member Spotlight in the Q4 2017 issue of Strategic Alliance Magazine. Greg Fox also co-presented, with Andrew Yeomans, CSAP, of Merck Serono, the January 18, 2018 ASAP Netcast webinar “Building the Engines of Collaboration Inside and Beyond the Borders of Mainland China.”

Tags:  alliance management  business development  channels  Cisco  Citrix  cloud  governance structures  Greg Fox  HPE  Huawei Technologies  manage alliance relationship  marketing  Novell  partnerships  product management  sales  strategic alliances  strategy 

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