Three Things You Must Know To Build Successful Strategic Partnerships
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Three Things You Must Know To Build Successful Strategic Partnerships

Earl Holland

Earl Holland, CEO, Growth Strategy Consultants & GTSC Strategic Advisor

The climate for small business opportunities has changed drastically in the federal market. Despite sequestration and budget cuts small businesses are seeing the largest set asides and competitive procurements in the history of federal contracting. To maximize success, we have found three critical components to a successful long-term strategic partnership.

With opportunities of such magnitude small businesses are changing their thinking on how to enter into, and capitalize on strategic relationships that go far beyond traditional teaming and subcontracting.  Many companies are choosing to enter into mentor/protégé programs and joint venture relationships to maximize chances of success. After many decades of experience forming lasting, long-term relationships for clients, we have found 3 key factors that contribute significantly to their success:

1.  Chemistry – What you put in is what you get out.
Successful relationships require research, reflection and thought to produce the type of chemistry necessary to initiate, execute and continue a long-term strategic relationship.  To find that chemistry, small companies must evaluate their potential partners’ values, ethics, principals and goals to find share areas and commonalities.  Additionally, the chemistry between executive stakeholders and management is also critical.  A conscious look at the management will provide insight into the style of communication and level of trust that can be expected throughout the relationship.  The closer these areas match, the better the ultimate match.

2.  Culture 

How a future manages their people and processes as well as interfaces with their customers is also critical.   The culture of each of the partner’s corporate environment will determine the synergy that can develop throughout the workforce.   Understanding, assessing and evaluating the culture in your potential partners’ firm gives you a good understanding of how easy it will be to implement processes and follow procedures when working with customers and on projects.  With good synergy, your day to day work will run smoothly and challenges in your relationship or with clients will be resolved more quickly and to mutual satisfaction. 

3.  Governance  

Forging these relationships can become a very complex task when integrating companies, people and processes that support customers. A strong governance structure that anticipates challenges, changes and conflicts helps to avoid future problems and helps both parties understand expectations, limitations and responsibilities.  I recommend that companies form a formal governance board or committee with representation from the executive suite, senior and mid-level management to develop the structure, lines of responsibilities and oversight of the joint activities and client interactions.

Whether you are considering a mentor/protégé program or developing a strategic alliance or joint venture, these three factors add significantly to your firms success.

Earl S. Holland III is CEO and President of Growth Strategy Consultants LLC. Mr. serves as a Strategic Advisor to the Government Technology & Services Coalition.  He is also Vice President of the Association of Strategic Alliances Professionals, Washington DC Chapter. Growth Strategy Consultants is management consulting firms located in Fairfax VA. They provide business to business consulting services and training to small and medium size businesses with an emphasis on Strategic Alliance Development.   www.Gstrategyc.com

Tips for Success in the Federal Market
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Tips for Success in the Federal Market

Small-Business-jpgBy Kristina Tanasichuk, Founder & CEO

Government Technology & Services Coalition

This piece appeared in the June 2013 Security Systems News SIA Fiscal Year Informer.

It’s National Small Business Week June 16-22, 2013 and in honor of this important week, we’re launching the GTSC Blog! Small business is the backbone of this county, and small business contractors help sustain our Federal partners’ missions. Selling to the government is not for everyone. There are, however, some tried and true basics that can help you decide if it is right for you. Join us in celebrating the strengths of small business and consider these points.

Pull Up a Chair and Make Yourself Comfortable

In most cases, it takes a laser focus, significant marketing and an 18-24 month commitment to make traction and build the part- nerships necessary for success in the federal market. Although government opportunities are posted on FedBizOpps, companies savvy about the workings of the federal market know that by the time these opportunities are posted, a great deal of marketing, relationship-building and resource expenditure has already taken place. A company turning to the government for a quick contract to boost revenue may be very disappointed. The good news is that, if you stay the course, the rewards are well worth it.

Where do I start?

First, the Small Business Administration (SBA) has a series of free online courses to help you understand the basics of contracting at www.sba.gov/gcclassroom. Nearly all federal agencies have an Office of Small and Disadvantaged Business Utilization (OSDBU) and a procurement division. Getting to know these folks will help you navigate the agency and find the right people. A list of the federal OSDBUs and their roles is available at www.osdbu.gov.

Ensuring that your internal capacity is adequate to execute and operate in the federal market is also critical. Contracting requires adherence to the Federal Acquisition Regulation (FAR), which includes specific accounting and billing procedures from the Defense Contract Audit Agency (DCAA), as well as other agency-specific requirements, such as security clearances and facilities standards. Thorough research on what you must build internally is as critical to your success as your efforts externally.

Small Business Set-Asides and Other Programs

There are numerous programs designed to help small companies get started in the federal market: HUB Zone, 8(a), Women-Owned Small Business (WOSB) and Service Disabled Veteran-Owned (SDVO) are a few examples. Learn more about the requirements of each here. The Small Business Innovation Research (SBIR) program helps companies develop products through research grants. Finally, a number of agencies have mentor-protégé programs that pair large, experienced contractors with small companies in the pursuit of federal opportunities.

Why You?

The government market is extremely competitive – even more so with sequestration and budget cuts. Being able to articulate clearly your company’s core competencies and market differentiators is critical to making your case to potential federal clients and industry partners. Develop a capability statement that is succinct and demonstrates what you do and why your company is different from your competitors. This is your “elevator pitch” on paper.

Understand Your Customers and the Way They Buy

Government customers are pulled in numerous directions. Their priorities and purchases are influenced by budgets controlled by Congress, political considerations, the FAR, and other programs that may have nothing to do with whether the customer wants to buy or not. Understanding their environment, challenges and needs is critical to your success.

Where’s the Money?

Now that you know your customer, where does their money come from, and is it coming at all? You can have the best idea, technology or product, but if the solution is not funded, or is not a priority, it will be difficult to get traction. Following the congressional budget process and determining whether certain programs or priorities are funded is critical. No money, no sale.

Plan Strategically

Will you be the prime contractor or act as a subcontractor to a larger firm? Are you interested in further development of a product or technology? Is there the possibility of a sole source contract? (Are your competencies so unique that you are the only provider?) Weathering the federal market by yourself is tough; partners can help you create a comprehensive solution. Determine how your core competencies can contribute to a so- lution and whether your position is strongest alone or with a partner.

Network. Network. Network.

Good grief! Where do you start to know agency priorities, con- gressional budgets, potential partners and all the regulations to which you must adhere? Maximize your reach by working with organizations that help you understand the market and build your contacts. Numerous non-profit organizations exist to help navigate the complex federal arena, and they provide the best way to get up to speed quickly.

This article was published in the Security Systems News’ June 2013 SIA Fiscal Year Informer.

>>Read the article in Security Systems News’ June 2013 SIA Fiscal Year Informer or download it here.