Tuesday, December 09, 2003

ISSUE: Objectively Review Program's Continued Fitness

Like government programs, some channel programs continue long after their usefulness has expired. While almost all companies have a blind spot when it come to the utility of cherished programs, companies with near monopolies or protected channels frequently are the last to notice. Sales may not have peaked for the channel as a whole, but ominous signals begin to appear. In fact, in the outward, CRN interview or press release, the program may still appear to be performing.

Channels, like people have distinct personalities and failure scripts. Paraphrasing Hedges Capers, a principal at behavioral consultants Spencer, Shenk, Capers and Associates, “Don’t worry if you miss the early warnings people display when their needs are not being met. You will get more obvious signals soon.”

However, upon closer observation, early warning signs are not hard to notice.

Some of the most obvious are when 1) the fundamental purpose for the program no longer exist, 2) the technology life cycle advances, 3) channel providers expectations differ sharply from the vendor party line, 4) channel morale sags, 5) promotional dollars are considered entitlements by the channel providers, and 6) responsibility for the program is delegated to junior-level personnel.

As the economy starts to heat up and promotional budgets again start to appear, it would be a breach of fiduciary responsibility to fund past programs without first evaluating the market conditions, channel requirements and corporate objectives that are the program’s strategic underpinning.

Scott Karren, The Channel Pro

COMMENT: Dec 16, 3:14 PM

I think your comments are right on. I had the opportunity to revamp some of the key channel programs for a large networking software company. The programs had been in place for many years, but the environment had completely shifted. As I presented my preliminary findings to my boss, who by the way was one of the original architects of the programs, I was a little negative. His only comment was, "It was a good idea when we originally created it" - And he was right. At the time the programs were created they were state of the art, innovative and vital. Unfortunately, overtime the objectives, the competitive landscape, and the key players had all evolved and the programs were no longer adding any value.

Bryan Johanson
Vice President, Channel Ventures 


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