Embed Size (px)
Citation preview
2/19/2018 Hunger Or Experience What Matters More -Rahul Gupta - BW Businessworld
http://businessworld.in/article/Hunger-Or-Experience-What-Matters-More-/18-02-2018-140873/ 1/4
# Business News # StartUp-&-Entrepreneur # Hospitality-Industry # Smartcities # Technology-Leaders # Advertising-&-Event-Industry # Sustainability
18 February, 2018by Rahul Gupta
Print this article Font size - 16 +
Hunger Or Experience… What Matters More?
Clients look out mostly for the experience and expertise one brings in a specific area but sometimes the hunger to achieve excellence scoresmuch above the expertise dimension
Support Business and finance news Analysis The News 15 Year Advisory Advocacy
Photo Credit : Masaru Goto / World Bank.,
InsureGenNEXT is one of the Insurance major and is looking for a service provider to help them run social media campaigns ontheir recent product launches. Last year while working on their 5-year Strategy plan, InsureGenNEXT has realized that the scopeof selling policies through agent network is reducing and social channels are picking up. Hence, selling through social channelsis now an important part of their Go-To-Market strategy. Understanding the same, last year they got into a Strategic Partnershipwith a well-known Marketing company MarMajor. The news of this partnership generated a lot of buzz in the marketplace.MarMajor has been in the business for a while and is well known for expertise in a wide range of marketing services. One yearinto execution, the relationship outcome has been underwhelming for both companies and due to multiple reasons.InsureGenNext has decided to come out of this contract and hire a new service provider. As part of the vendor selection process,InsureGenNEXT has now engaged a deal advisory firm to help them shortlist Marketing companies that meet theirrequirements.
This is a very typical scenario in most industries today. Replace InsureGenNEXT with "client", social media campaign with"service offerings" and MarMajor with "service provider" and you will end up finding such examples in your respective industry.
In the pecking order, credibility is the most sort after quality by clients InsureGenNEXT hired MarMajor because of latter's undisputed credibility in Marketing services. MarMajor has the reputation to
Custom Search
Like
Socialize
Get Social! Follow us on yoursocial networking website.
Quick Bytes
5 'Best oApps AnGoogle P read mo
All You NKnow AbJeep WraUnveiledShow read mo
5 ThingsNot KnowBitcoin
HOME COLUMNS COMMUNITIES EVENTS BW TV SUBSCRIBE TO PRINT COUPONS BW CONNECT
February 19, 2018 Magazine Issue Advertise With Us Careers RSS F
Cat
egor
y Ju
mpt
list
More information about analysisGet search results for analysis
www.infolinks.com Click here
2/19/2018 Hunger Or Experience What Matters More -Rahul Gupta - BW Businessworld
http://businessworld.in/article/Hunger-Or-Experience-What-Matters-More-/18-02-2018-140873/ 2/4
have successfully delivered many social media campaigns across industries. It was able to provide multiple customer casestudies and references to InsureGenNext. This not only boosted the confidence in the selection process but also sounded like afailsafe bet.
Often clients follow this route to select service providers as it is the easiest way to do so especially when the client doesn't havemuch experience in those areas. Yet this process does not account for:
1. Cultural differences between the two organizations: Governance and transparency are important dimensions and how eachcompany weigh them is critical 2. Strategic importance of the deal: Each side may hold a different view about the deal based on their relative positioning toleverage the deal outcome 3. Relationship over Solution: Relationship to drive deal closures may take precedence over getting the right solution. This canhappen at Deal Sponsor level to the Board of Director level and can lead to under optimal selection 4. Letter and Spirit of Contract: A mismatch on what takes precedence drives conversation tone and ensures long termsuccess or failure of the client-service provider relationship
The Chicken and Egg problem Often service providers are faced with this situation when developing new offerings. While they want to penetrate into a newmarket segment, they don't have the credibility to support their case. On the other hand, clients are looking for experience andcredibility of having delivered such services. This is required to even shortlist the service provider in their initial consideration set. While there is hunger to win such deals, the lack of experience creates a major roadblock.
Service providers need to exploit both Organic and Inorganic ways It is important that the service provider organization makes substantial investments in developing new offerings that will helpthem stay competitive in the future marketplace. It is often easier said than done as there are upfront investments needed.Typically, it is very difficult to convince the Executive Management team on the business case of new offerings as there are a lotof unknowns involved. Hence, the culture of the organization is an extremely important factor to make this happen.Furthermore, other than pitching for deals and continuously making an attempt to win them, the service provider also needs toscan the marketplace for viable targets for acquisitions. This will help in breaking the Chicken and Egg problem as the acquiredcompany may bring some credible references and case studies with them. A few important aspects during the sales process thatthe service provider should try to do:
1. Build relationship with someone in the client organization who can provide advocacy 2. Show your hunger and clarify why the deal is strategic for them 3. Ensure the solution provided meets all requirements and is competitively priced 4. Show your investments in building capabilities and that you are in for the long term
Clients too need to see beyond experience and credibility While every firm has their own philosophy or process to select service provider, experience and credibility are just one keydimension. They need to ask:
1. Are we culturally aligned? 2. Are they serious about us as priority? 3. Are they going to make investments to strengthen capability or is it a flash in the pan deal? 4. Will contract dictate relationship or they will partner with us even if not obligated contractually? Benigno Aquino III summarizes it succinctly "Strategic partnership is based on a shared set of values". While InsureGenNEXTtook the easy way out to hire MarMajor, it didn't turn out to be the best deal for them and neither MarMajor was able to get acredible reference for the future.
Whichever side you stand; next time look for shared set of values going beyond the credibility dimension for a fruitful and longstanding relationship.
*Names of companies mentioned are fictitious and is provided for the easy of story-telling.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of thispublishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thoughtto represent official ideas, attitudes, or policies of any agency or institution.
Tags assigned to this article:
hunger
read mo
8th GlobEntrepreSummit:TakeawaIvanka TPM ModSpeeche read mo
5 ThingsAbout GlEntrepreSummit read mo
Five WayProtect YOrganisaCyber SeAttack read mo
BW TV
If not ApSamsungwhat? read mo
OnePlusthe best user exp read mo
Emails athe mostto a thre read mo
We haveIndia moto Mexicsays MexAmbassa read mo
Recently Published
2018 FoState Of EconomyOutlook read mo
TVS ApaLaunch ODecembeOfficially
2/19/2018 Hunger Or Experience What Matters More -Rahul Gupta - BW Businessworld
http://businessworld.in/article/Hunger-Or-Experience-What-Matters-More-/18-02-2018-140873/ 3/4
BW COMMUNITIESBW Communities is an array of business news websites targeted towards niche communities and readers across various industries
More From The Author >>
Advertisement
Rahul GuptaRahul is passionate about Strategy and Change Management. He has around 15 years of experiencein Management Consulting, Business Transformation and driving Strategy and M&A across multipleindustries, business domains, technologies & geographies. Rahul holds an MBA from XLRI and is aGold Medalist in Engineering from Jadavpur University
Login
0 Comment
1 hr agoAjay Singh Is EY Indian Entrepreneur Of The Year For BusinessTransformation (3 Comments) 7 hrs ago
CBI Conducts Searches In Widening Probe In PNB Fraud Case(21 Comments)
9 hrs agoHPMF Announces the Launch of Middle East Chapter - BWHotelier (1 Comment) 15 hrs ago
Developing India s Human Capital Through Sports-Anirban RBanerjee - BW Businessworld (14 Comments)
Write your opinion..
Latest Commented Articles
read mo
GST WillHigher AEconomiCargill In read mo
A TreasuHandicraEuropea read mo
Around The World
Recommended by
Axis Bank
Key DifferBetween PPF
My Antivirus R
Top 10 An(2018) - W#1 For Ma
Magic Crate
Get Your KFrom TV a
nerolac.com
Paint youstunning healthy h
Next Previous
View More Articles
Subscribe To Our Newsletter
Your e-mail
Subscribe Now
2/19/2018 Hunger Or Experience What Matters More -Rahul Gupta - BW Businessworld
http://businessworld.in/article/Hunger-Or-Experience-What-Matters-More-/18-02-2018-140873/ 4/4
Read More »
☞ Satyam Sikarwar MD, SAPInfra TechnologiesReceives “Entrepreneurial Excellence Award – ICTSector”
☞ Mahindra Invests up to Rs 176Cr in Zoomcar inPush to Promote Shared Mobility and ElectricVehicles
☞ Microsoft Rebrands Startup Program with $500Mto Promote Azure Cloud Services Read More »
☞ Puri announces annual assessment of LivabilityIndex for 116 Indian cities
☞ Service Oriented Organizational Structure ForMunicipalities
☞ ‘India loses about 3% of GDP due to road crashesper year’
R
☞ HPMF Announces the Launch of MiddlChapter
☞ New DoSM Appointed at JW Marriott MWalnut Grove Resort and Spa
☞ Bangalore Welcomes Courtyard by MaHebbal
© Copyright BW BUSINESSWORLD 2016. All Rights Reserved. Magazine Issue Advertise With Us/ Careers/ RSS Feeds/
