Global Business Development 13-14 Final Quarter Report
OUR LIMITS Our Partners see us as Vendors q Partners don’t understand why we do what we do and the role that they play in codelivering leadership development experiences q Partnerships lack longterm direction and are decreasing or stagnant
Financial Pressure & Red Flag Partnerships q 30% growth in AI budget over the last 4 years, however BD team faced declining partnership revenue q Many red flag partnerships – risked losing a significant number of partners/ revenue
Untapped markets and lack of network collaboration q Lack of global market relevance – most partners are European q Unclear about how to best collaborate with the network for both sales and delivery q We depend on the network but don’t have the capacity to invest in its development
PLAN for Evolution THE NEEDED EVOLUTION… q MNCs (or organizations capable of multiple country GIP collaboration) are an under-leveraged market segment (in 12-13, 800 GIP realizations came from MNCs, of which Global Exchange Partnerships contributed to over 400) q GEP realizations have organically grown by 30% since 2011, meaning there is greater potential for GEP to contribute to GIP MoS goals if there is greater focus and capacity allocated towards the growth of current partnerships
THE GLOBAL PARTNERSHIPS LONG-TERM PLAN q
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GEP revenue has remained consistent since 2010 (with a GEP revenue increase in 10-11 followed by a 3 year decline until 13-14) despite an increase in the AI budget of 30%
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The AI BD team has not had a capacity scale up model to allow the team to both deliver and grow high quality partnerships while also maintaining a healthy new sales pipeline and engaging more new partners with AIESEC
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Our Global Partnership portfolio (consisting of programmes, activities, and channels) is European-centric in design and needs pricing and packaging customization before finding success in a new regional market
3-year roadmap to evolve the global partnership area to become a strategic function that can bring the most impact to the AIESEC network plan encompasses growth targets for Global Exchange Partnerships and MNC engagement through Global Youth to Business Forum initiatives. Through this we believe the greatest contribution can be made to AIESEC 2015 and beyond. As part of this plan, the global partnership office has set targets for market growth and penetration, capacity development and process improvements.
The PLAN – Strategic Moves, Goals, KPIs
Refresh Partnerships Team Bottom Line
Market Penetration Strategy & Checklist
GIS: GEP Process & Employer Branding Goals § § § § § §
Portfolio Development
B2B Marketing Strategy & Long-Term Brand Support
# of internships realized with Global Partners (per AI term) $ Revenue from Global Partners # en>>es that open and realize internships with Global Exchange Partners # en>>es that match and realize Exchange Par>cipants with Global Exchange Partners $ Revenue generated through Global Partnerss for the network Y2B Revenue
AI BD & Operations Synergy (Global Sales Force)
Scalable Global Internships Delivery Structure
Global Sales Education & Network Development
Partner Satisfaction System
Performance Indicators
Partner Growth
# of GEP from Tier 1 partners # of GEP from Tier 2 partners # of GEP from Tier 3 partners
Market Growth by revenue, TNs, Y2B
Partnership Development Partnerships 5+ Years
12/13
13/14 GEP
Y2B
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Pilot Partnership
Partnership Development
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RAISE DELIVERY STANDARD
PARTNERSHIPS WITH PURPOSE
CUSTOMER CENTRICITY
Development of new partnership activities and offerings Spend more time listening to our partners and understanding their needs – more physical visits and increase in communication with different stakeholders in the company Flexibility to work with high potential companies that are not MNCs Extensive research to prove the ROI of each partnership
FOCUS 3
FOCUS 2
FOCUS 1 §
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Change the language used with partners to better communicate AIESEC and why we do what we do Deliver Clarity of the Why in all partner interaction spaces (physical meetings, conferences, Partner Advisory Board) and reset expectations of partnership Started conversations to with partners to build 3-5 year strategic partnership plan
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Developed onboarding process for new partners to ensure sustainable and scalable partnerships Clarified roles and responsibilities of all stakeholders (company, GC, MC, AI) Delivered partnerships with professionalism and excellence – resulted in upscale and overdelivery of contracts Developed tools and analysis for BD HR/delivery capacity and added a new member to the BD team, creating a mindset of flexibility
Selling with the Network Market
AP!
USA!
UK!
Switzerland!
Approach
Highlights
Learning
§ Active co-sales strategy and approach with key entities" § Detailed market analysis and understanding" § Long-term plan for market expansion"
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Leveraged alumni network and created a buzz about AIESEC’s brand in business community"
NYC Youth to Business Dialogue event engaging prospects, partners, alumni and showcasing AIESEC’s thought leadership"
Challenging GEP market requires different approach, customized value proposition, and innovation around partnership offerings"
Leveraged alumni network and partner referrals"
§ Several new leads generated for next term"
§ Leveraging the alumni network and building a strong network in the business community is critical for market access"
Approached the market as one entity “AIESEC” vs. AIESEC in Switzerland, AIESEC International"
§ Logitech - New Global Partnership" § Several leads and prospects generated for next term"
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Deeper analysis & recommendations for next term translated into collateral material" 20+ companies active in sales pipeline" Bacardi - new Y2B Partner" 1415 entity commitment to AP BD strategy
§ Cracking a new market requires proper planning, careful approach, active entity support, and long-term determination"
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Belgium/ Netherlands!
Educated MCs about global partnership portfolio and took responsive market approach"
§ New Global Partnership: Wings on Board" § Several leads and prospects generated for next term"
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Positioning of AIESEC and relevance of AIESEC partnership portfolio in CH (good value proposition and pricing) " Efficiency of co-sales approach (leads, referrals, etc.) Co-selling with entities works, especially when what is best for the company is prioritized
Q3 - Financial Overview & Pipeline Overview" 13/14 Target
Revenue to Date
§ Total AI Budget updated at IC 2013 for 13/14 term: § Additional budget increase for 5th BD Manager: § BD Target Contribution - 49% of AI 13/14 Budget:
€ 1,181,416.50 €18,000.00 (13/14) € 596,894.09
AI BD Revenue, 49%
Membershi p Fees, 51%
€ 663,325.00
(111% of adjusted target)
§ BD Revenue confirmed for the 14/15 term (to date): € 259,692.00
(75% of the 1415 BD target)
§ BD Revenue secured for the 13/14 term (to date):
*Each year, the current BD team aims to cover 60% of the next term’s financial target
§ Surplus for 13-14 term: €66,431.00 The 13-14 BD team finally reversed the three-year trend of decreasing revenue
Financial Budgeted
Achieved
€ 883,848.00 € 740,672.00 € 702,600.00
€ 769,672.00 € 671,854.00 € 546,411.00
€ 551,372.00
€ 473,200.00
€ 661,208.00 € 658,625.00 € 604,000.00 € 596,894.00 € 565,638.00 € 483,000.00
2013-2014
2014-2015
Secured
€ 663,325 (111%)
€ 191,521 (32%)
Confirmed
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€ 259,692 (75%)
Projected
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€ 492,880 (82%)
Surplus
€ 66,431