Thursday, March 04, 2004
Issue: Channels Often Not Viewed as Strategic
I keep asking myself why channels are not more strategic. Even in companies that have the preponderance of sales from channels, the Channel VPs often are not part of the executive committee. Worse yet, they are seen as less valuable than direct sales. This leads to populating the channel organization with direct sales rejects, junior account managers and 2nd tier marcom personnel.
It is not unusual for junior people to be given responsibility for channels despite their lack of experience with that channel. Worse than their lack of experience, is their lack of standing within the corporate management chain. Think about it. If you delegated the job to a peon, it must be because nothing they do can have a real impact on business. This is the start of a vicious cycle. They then develop lackluster programs and “me too” value propositions that fail to impact partner behavior, sales performance occurs in spite of the program and proves that the job is not important.
The real tragedy is that it dies not have to be this way. Sales force management and productivity are key to a company’s growth and profitability. Channels, when professionally managed can create barriers to competition, market coverage and consistent sales volumes.
The key to breaking out of the “channel reject cycle” is to demand accountability from the channel organizations. Set the bar higher and staff the organization to hit the mark.
Scott Karren, The Channel Pro
I keep asking myself why channels are not more strategic. Even in companies that have the preponderance of sales from channels, the Channel VPs often are not part of the executive committee. Worse yet, they are seen as less valuable than direct sales. This leads to populating the channel organization with direct sales rejects, junior account managers and 2nd tier marcom personnel.
It is not unusual for junior people to be given responsibility for channels despite their lack of experience with that channel. Worse than their lack of experience, is their lack of standing within the corporate management chain. Think about it. If you delegated the job to a peon, it must be because nothing they do can have a real impact on business. This is the start of a vicious cycle. They then develop lackluster programs and “me too” value propositions that fail to impact partner behavior, sales performance occurs in spite of the program and proves that the job is not important.
The real tragedy is that it dies not have to be this way. Sales force management and productivity are key to a company’s growth and profitability. Channels, when professionally managed can create barriers to competition, market coverage and consistent sales volumes.
The key to breaking out of the “channel reject cycle” is to demand accountability from the channel organizations. Set the bar higher and staff the organization to hit the mark.
Scott Karren, The Channel Pro
