Need for Fundamental Channel Change

1
Need for Fundamental Channel Change

• Focusing Resources in 2009 for Channel
  Effectiveness

2
Pain of the channel (and the chief)

• Few channel organizations have ability to
  demonstrate their value add to the organization.
• They dont know whats working and what isnt
• It is unacceptable at any time, but particularly
  now to have /- 50 of gross revenue at risk and
  unpredictable
• This places vendor stability, budgets, programs
  and channel jobs at risk

3
Hypothesis Too Focused on Efficiency

• Characteristics of Internal Efficiency Focus
• Focused on automation and removing costs
• Not revenue focused
• Doesnt require exec team buy-in or review
  because
• Typically little or no enterprise visibility or
  impact
• The default focus of most channel organizations
• Typical Internal Efficiency Focused Programs
• Recruiting more partners
• Updating partner portal
• Delivering a partner satisfaction survey
• Rebuilding partner database
• Creating an MDF program
• Building a chat room
• Adding a new level to your partner program
• Rebuilding your partner training program

4
The Survey

• Targeted Top Channel Executive
• Average Channel 1,000 Resellers
• Channel contribution - over 50
• Across six industries

Source SiriusDecisions
5
Channels more important than ever to revenue
Partners bring more revenue to the table
Combined Increased 61.1
Partners get more spend from vendors
Combined Increased 69.5
6
Channel Executives Want Change

• Growth engine
• Competitive asset
• Strategic asset
• Revenue generating machine
• Driving incremental deals
• Mission critical to the business

7
But Dont Always Know How to Make That Actionable

• Are stuck in operational efficiency investments
• 4 of the top 5 planned technology investments for
  2009 are infrastructure, administration and
  operational
• Training/Learning Management Systems
• Partner Communications / Blogging
• Partner Content Portals
• MDF/Co-Op Management
• And think adding more partners to the mix is the
  answer
• 23 said that Recruiting more partners in
  existing markets is their number 1 goal for their
  channel organization during the next 12 to 24
  months
• Could you imagine the VP of Direct Sales saying
  that this was his plan for 2009?

8
Two Clusters of Respondents
9
Its (also) About The Partner

• Partners (generally) dont benefit from vendor
  investments in recruitment
• The path to revenue from new partners is too long
  to influence 2009 Revenues
• Better enabling existing partners is a much more
  effective approach
• Partners dont benefit from vendor efficiency
• Hold partners accountable while investing in them

10
Conclusions

• Clear groupings with Effectiveness or Efficiency
  focus
• Too many channel chiefs engaged in the same (old)
  low-risk, low-return internal efficiency
  activities
• Too few channel chiefs are ready to drive
  fundamental changes that
• enable greater impact and equality with direct
  sales
• increase visibility
• increase empowerment and
• increase accountability in the channel
• If the goal is to increase revenue, then peers
  are spending the majority of time on
• Lead Management
• Deal Registration
• Reporting and accountability
• Its not too late to make a difference in 2009

11
Recommendations for 2009 Impact

• Measure every Partner, Lead and Opportunity KPI
• Improve Lead Management
• Generate high quality leads
• Ensure leads are delivered rapidly
• Ensure leads get to the right partner every time
• Increase CAM effectiveness
• Protect partners from channel conflict
• Help partners accelerate sales cycles and close
  deals
• Selling guidance and coaching
• Contextual product information

12
Appendix
13
Appendix A - Selected Survey Data Elements
Survey Execution Dates September 15 26,
2008
14
Demographic Data
15
Demographic Data
16
Planned Future (12 month) Investments
17
Priorities for the coming 12 months
18
Vendor / Partner Reporting Interactions
19
Resource Allocations
20
Partner Contribution () of Total Vendor Revenue