Business Partner Management: Successfully Managing External and Internal Business Relationships

221 Pages·2022·7.444 MB·English

by  Klaus Krause, Tobias Schnitzler

Business Partner Management
Klaus Krause • Tobias Schnitzler
Business Partner
Management
Successfully Managing External
and Internal Business Relationships
Klaus Krause Tobias Schnitzler
Krause3PM Partner Management in Business Vienna University of Economics and Business
Berlin, Deutschland Vienna, Austria
ISBN 978-3-658-37474-7 ISBN 978-3-658-37475-4 (eBook)
https://doi.org/10.1007/978-3-658-37475-4
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden
GmbH, part of Springer Nature 2022
This book is a translation of the original German edition „Business Partner Management“ by Krause, Klaus,
published by Springer Fachmedien Wiesbaden GmbH in 2021. The translation was done with the help of artificial
intelligence (machine translation by the service DeepL.com). A subsequent human revision was done primarily
in terms of content, so that the book will read stylistically differently from a conventional translation. Springer
Nature works continuously to further the development of tools for the production of books and on the related
technologies to support the authors.
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the
whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or informa-
tion storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does
not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective
laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this book are
believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give
a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that
may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.
This Springer imprint is published by the registered company Springer Fachmedien Wiesbaden GmbH part of
Springer Nature.
The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany
Preface
In the age of digitalization and globalization … no, this is the hook for many events where
it is debated with media attention that business needs partnerships. SMEs need start-ups,
research needs industry, and industry needs partners for export, but this is not the reason
for this book.
One thing is certain: no company can provide all services by itself and independently
of third parties. This has always been the case and would also be foolish, because “cobbler,
stick to your last” always applies. One needs material suppliers, service providers, perhaps
also cooperation partners, but of course also suitable employees, all of whom represent the
partners and the partner eco-system of the company.
That is why this book is also written in two parts and by two authors. In the first part we
deal with the external partnerships and in the second part with the internal partnerships,
i.e., the personnel.
While personnel are sought and found via advertisements, job exchanges, and person-
nel service providers, the search for business partners today is still rather “archaic.”
People exchange business cards at evening events, trade fairs, and conferences or look
for suitable business partners on the Internet. Hope and fortune are the companions. This
is not efficient and costs a lot of time and money.
A further obstacle is formed by all kinds of resentments between the seekers. Start-ups
and young companies are afraid of the established because they fear losing their indepen-
dence and being robbed of their ideas. The established, on the other hand, shy away from
the “young wild ones” because they accuse them of being unreliable. When it comes to
partnering, many managers think “That’s what our purchasing department does” and then
immediately think of contracts and expensive lawyers who would have to be commissi-
oned. So they prefer to leave it alone and order material by e-mail without checking the
terms and conditions, i.e., the small print, more closely.
But how can these hurdles be overcome? How does one conduct the search for the right
partner systematically and thus efficiently and effectively? How does one choose the
appropriate business model, agree, implement, live, and then maintain it? What do you
have to pay attention to when a partnership is to be terminated?
v
vI Preface
Questions upon questions is what young entrepreneurs feel overwhelmed by or are not
even aware of, which is why they shy away from partnerships or rely on try-and-error.
On the other hand, established companies already have a so-called partner eco-system.
It has grown historically and is often neglected to be nurtured and cared for. But if the
know-how is missing, then it is even more missing if you want to look for a suitable inno-
vation partner among the “young wild ones.”
Clearly structured, industry-independent, and transferable, this practical handbook th-
erefore provides a practical guide that leads through all stages of a partnership and at the
same time delves into important individual topics. For example, information security, ty-
pical business contracts, as well as the handling of claims (claim management) are descri-
bed simply and clearly from the experience of many years of practice. Finally, this guide
is supplemented and rounded off by presenting important aspects of strategic partner ma-
nagement and so-called interest management.
In the second part of this book, we again take up the parallels to private relationships
between people, but now map these to the internal partnerships in a company, to the rela-
tionships between employer and employee, and between the employees themselves.
Parts of the doctoral thesis of the author Dr. Tobias Schnitzler, which he recently com-
pleted with Dr. Gerald Hüther, are included in the book and can be used to approach this
topic from the perspective of brain research.
This states that we experience different moments in the course of our life. There are
nice, positive moments and there are less nice moments. We would like to always experi-
ence only the beautiful moments. However, brain research shows that a less beautiful
moment does not necessarily have a negative effect on a child or an adult. It has further
been shown that a child only needs one person – this can be someone from the family, a
neighbor, or even a stranger with whom the child has contact – who believes in the child,
who accepts them as they are, who makes them feel that they are good, just as they are. In
fact, the less beautiful moments are part of life, because it is through them that we appre-
ciate the beautiful moments and they become a frame of reference.
Relationship means not only a partnership relationship but also an exchange between
two or more people. This can be between friends, work colleagues, in the family, or simply
with a stranger.
In our time, humanity is very much lost. Many only look at themselves, their ego, and
that it is doing well, no matter if it is at the expense of others. People today relate less and
less to each other but treat each other as objects and attribute this or that to others. In fact,
every person can decide every second of their life: Do I want to relate to another per-
son or not?
A key is the claim that we need more communities whose members invite, encourage,
and inspire each other to go beyond themselves. The idea behind this is that team members
who meet each other as subjects and do not make themselves the object of individual goals
together develop a power that allows the team as a whole to grow beyond itself. The IQ of
the group is significantly higher than the sum of the individual potentials and performance
capabilities. This practical manual presents the WeQ test.
Preface vII
Furthermore, an internal picture of the start-ups and NGOs is drawn and their internal
partnering is illuminated. Are start-ups more creative than established companies? Are
medium-sized companies lagging behind innovation? What is the secret of the “young
wild ones” and what can the established companies learn from them?
These are many questions, and there may be many answers, but one observation should
make us pay attention and think! A large majority of start-ups are multicultural. The foun-
ders come from many countries, belong to many cultures, and very often have completely
different mentalities. How do they manage not to have to overcome this as hurdles, but
rather to harness it as a strength for themselves and develop a common force?
The team members of such colorfully mixed start-ups meet each other as a matter of
course on an equal footing, appreciatively and amicably, i.e., in subject relationships.
Teams in established companies with hierarchical structures and predefined target and
performance requirements have often forgotten this ability and are trapped in object rela-
tionships.
Reading the book in its two parts should stimulate reflection, adaptation, and transfer
of what is presented to one’s own business and environment. It should encourage partne-
ring and at the same time prepare you for working with partners (and, if necessary, with
lawyers).
It is deliberately kept neutral and abstract. The generally applicable presentation and
clear outline take precedence over focusing on a single target group, a specific market
segment, an industry, or a special sales type. A relaxed style of writing, many practical
tips, and vivid examples are intended to make reading easier, but also to help with under-
standing and “keeping in mind.”
But before you dive into the reading, here’s a note that’s very close to our hearts.
This book is also a clear vote for fairness and humanity in working with partners. Part-
ner management does not mean that you should learn how to “manage” a partner, i.e., lead
them through the ring and make them the object of your own interests and goals.
Partner Management, both internally and externally, means building up and main-
taining a subject-related relationship between the partners – i.e., always people – in the
same way as one would wish and should strive for in a private relationship: respecting the
dignity of the partner, with tolerance, fairness, and integrity. This is how one becomes
happy in a partnership, and this is the goal.
So have fun reading and success after the implementation!
Berlin, Germany Klaus Krause
Vienna, Austria Tobias Schnitzler
Contents
Part I External Partner Management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1
1 Private and Business Matters� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3
1.1 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 Operational Partner Management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7
2.1 Objectives of Business Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2 Smart Partnering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2.1 Close Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2.2 The Right Business Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2.3 The Partner Eco-System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2.4 Maintenance of the Partner Eco-System . . . . . . . . . . . . . . . . . . 11
2.2.5 Partner Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2.6 Partner Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.2.7 The Tasks of Partner Management . . . . . . . . . . . . . . . . . . . . . . . 20
2.3 The Five Stages of Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.3.1 Stage 1 – Partner Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.3.2 Stage 2 – Contract Negotiation and Conclusion . . . . . . . . . . . . . 38
2.3.3 Stage 3 – Implementation of the Contract . . . . . . . . . . . . . . . . . 49
2.3.4 Stage 4 – Application of the Contract . . . . . . . . . . . . . . . . . . . . . 55
2.3.5 Stage 5 – Termination of a Partnership . . . . . . . . . . . . . . . . . . . . 62
3 Digging Deeper � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 71
3.1 Partner Selection and Operational Assessment . . . . . . . . . . . . . . . . . . . . . 72
3.1.1 Why Is Care So Important When Choosing a Partner? . . . . . . . 72
3.1.2 Selection Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
3.1.3 Operational Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
3.1.4 OSQ Examples (Tables 3.1, 3.2, 3.3, and 3.4) . . . . . . . . . . . . . . 75
3.1.5 Partner Selection? Didn’t We Already Cover This in Detail? . . 75
3.2 The Partner Eco-System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
3.2.1 Structure and Elements of a Partner Eco-System . . . . . . . . . . . . 79
3.2.2 Value-Adding and Value-Damaging Factors . . . . . . . . . . . . . . . 82
Ix
x Contents
3.2.3 M aintenance, Clean-Up and Detachment . . . . . . . . . . . . . . . . . . . 84
3.2.4 T rump Card or Ballast? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
3.3 T he Quotation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
3.3.1 R fX: Offering in Three Phases . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
3.3.2 A cceptance of Offers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
3.3.3 P urchased as Viewed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
3.4 E ngagement Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
3.4.1 D irect or Indirect Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
3.4.2 P rocurement-Oriented Business Models . . . . . . . . . . . . . . . . . . . . 93
3.4.3 I n Love, Engaged, Married! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
3.5 T ypical Business Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
3.5.1 N on-Disclosure Agreements NDA . . . . . . . . . . . . . . . . . . . . . . . . 97
3.5.2 Letter of Intent, Memorandum of Understanding . . . . . . . . . . . . . 98
3.5.3 F ramework Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
3.5.4 F ramework Agreement – Annexes . . . . . . . . . . . . . . . . . . . . . . . . 98
3.5.5 T ypical Statement-of-Work SoW . . . . . . . . . . . . . . . . . . . . . . . . . 98
3.5.6 Typical Maintenance and Support Agreement MSA. . . . . . . . . . . 100
3.5.7 W hat Is Typical, You Asked Yourself? . . . . . . . . . . . . . . . . . . . . . 110
3.6 I nformation Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
3.6.1 O bjectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
3.6.2 Information Security – My Personal Responsibility! . . . . . . . . . . 117
3.6.3 R easons for Security Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
3.6.4 C onsequences of Non-compliance . . . . . . . . . . . . . . . . . . . . . . . . 120
3.6.5 W hat Must Be Observed! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
3.6.6 IPR Protection (Intellectual Property Rights) . . . . . . . . . . . . . . . . 121
3.6.7 S ummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
3.6.8 I nformation Security Between Partners . . . . . . . . . . . . . . . . . . . . 122
3.6.9 Information Security for Business Partners . . . . . . . . . . . . . . . . . 125
3.6.10 For Little Knows My Royal Dame That Rumpelstiltskin Is My
Name! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
3.7 C laim Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
3.7.1 D efinitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
3.7.2 B efore RfS/TAcc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
3.7.3 A ccording to RfS/TAcc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
3.7.4 C ontractual Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
3.7.5 P rocess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
3.7.6 T hings Can Go Wrong Sometimes! . . . . . . . . . . . . . . . . . . . . . . . 132
3.8 A rchiving of Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
3.8.1 I ntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
3.8.2 G eneral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
3.8.3 R equirements for Company Processes . . . . . . . . . . . . . . . . . . . . . 135
3.8.4 R equirements for the Contract Archive . . . . . . . . . . . . . . . . . . . . . 136
Contents xI
3.8.5 For What One Has in Black and White, One Can Carry Home in
Comfort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
3.9 Organisation – RACI and MoO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
3.9.1 MoO for the “Supplier” Use Case . . . . . . . . . . . . . . . . . . . . . . . 139
3.9.2 Order is Half of Life, Rearrangement the Other Half! . . . . . . . . 141
3.10 Kaizen – Change for the Better . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
3.10.1 The 5S of Kaizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
3.10.2 Take a Muda Walk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
3.10.3 What Is Muda? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
3.10.4 Genba: The Place of Reporting or the Scene of the Crime . . . . 147
4 Strategic Partner Management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 149
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
4.2 Strategic Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
4.2.1 Chess Versus Poker? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
5 Interest Management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 155
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
5.2 Competition, Our Archaic Pattern of Action . . . . . . . . . . . . . . . . . . . . . . . 156
5.3 Cooperation as a Means of Competition . . . . . . . . . . . . . . . . . . . . . . . . . . 157
5.4 Cooperation as a Means of Shared Success . . . . . . . . . . . . . . . . . . . . . . . 158
5.5 Co-creativity, Because It Gets You Somewhere! . . . . . . . . . . . . . . . . . . . . 159
5.6 Interest Management as a Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
5.6.1 “Chief Interest Manager”? What Is This? . . . . . . . . . . . . . . . . . 162
Part II Internal Partner Management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 163
6 Challenges Arising from Rapid Technological Change � � � � � � � � � � � � � � � � � � 165
7 The Holistic Value Creation of Work � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 167
7.1 Trends and Problems in the Current World of Work . . . . . . . . . . . . . . . . . 168
7.2 The Role of Environment, Relationships and Empathy . . . . . . . . . . . . . . 169
7.2.1 Where Does Change Have to Start? . . . . . . . . . . . . . . . . . . . . . . 170
Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
8 The Conditions and Consequences of Internal Partnering � � � � � � � � � � � � � � � 171
8.1 What Forms Exist? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8.2 Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
9 A New Tool: The WeQ Test � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 175
9.1 The Capacity for Team Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
9.2 The Contents of the WeQ-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
9.3 The Application of the WeQ Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
9.4 Evaluation of the WeQ Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182