Channel Leadership - What You Said

First, I wanted to thank everyone for replying to my previous post. I received a good deal of input via LinkedIn groups, email, and conversations so I wanted to summarize what you said about the qualities of a great channel leader. Instead of a laundry list of responses, here is a summary with some added commentary:

VISION & THOUGHT LEADERSHIP
This was interesting to me not because I was surprised to see so many responses regarding vision and thought leadership, but because of the lack of responses related to tactical execution. You identified the more strategic qualities of a channel leader much more frequently than the qualities related to the ability to deliver on the vision.

CREDIBILITY
I was pleased to see this quality mentioned a few times. It is not uncommon for companies to have a rotating door of channel leadership. It seems, especially in larger organizations, that there is a fair amount of churn in the channel leadership ranks. Solution Providers typically adapt pretty well to the changes, but they want credible leadership – someone that truly understands the channel model and how to best partner with their channels.

CURIOSITY
This is perhaps related to “credibility”. You want a leader that has a natural curiosity to the business. I have often used the phrase, “relentless discomfort with the status quo” as a quality of a great channel leader. Curiosity is just that; a desire to learn and implement innovative solutions to the channel challenge.

COLLABORATIVE
I wanted to highlight this quality because nobody mentioned it in their responses. I believe that a great channel leader must be collaborative with both their internal and external constituencies. As we all know, executing and delivering on a channel vision requires the active participation of virtually every functional team. If the channel leader cannot or will not collaborate with sales, marketing, customer service, operations, engineering, finance, etc… they will find themselves with a poorly developed channel initiative. I believe this is a critical quality and I was surprised this wasn’t mentioned…am I missing the boat on this one?

INTEGRITY, TRANSPARENCY & AUTHENTICITY
These are absolutely the most critical qualities of a great channel leader in your eyes. Almost every single response had at least one of these mentioned. Interestingly, the cover story of the latest issue of Business Week is dedicated to Trust. I am sure that the recent corporate bailouts, unethical business behavior, and irresponsible compensation practices have contributed to integrity, transparency, and authenticity being the most important qualities of leadership. This is clearly not reserved for channel leadership, but rather for leadership in general. I also believe that with the increasing power of consumers and their ability to organize and communicate quickly and effectively, companies and leaders must engage in open conversations. If they are transparent and authentic, then trust can become a great asset and improve for their brand. Interesting article…you should check it out.

Thanks again…keep the ideas coming!

Your Next Channel Leader

If you were hiring for a channel leadership position (Director or VP level) what professional and personal qualities would you look for?

I am interested in the adjectives that best describe a channel leader, not the "generic" candidate requirements from a job description; for example:

· X number of years of industry specific experience
· X number of years of channel program management and development
· Proven ability to work across functional organizations
· Experience with content development (brochures, whitepapers, communiqués)
· Coordination and collaboration with sales organization
· Excellent presentation skills
· Proven ability to build new relationships at CXO levels

All of the requirements above relate to specific experiences and past performance. Don’t get me wrong…these are extremely important considerations and should absolutely be part of the selection criteria. What I am interested in, however, are the individual qualities that make a great channel leader.

What are the adjectives or descriptive phrases that best sum up the qualities of a great channel leader?

Let me know your thoughts and I will post the results in a subsequent post. I think we can all benefit…whether you are looking for new gig, looking to hire, or in the business of helping companies build their channel.

Lessons From The WSOP

I am not a poker player. Sure, I have played a few neighborhood games here and there…won some, lost some, but I certainly do not consider myself even an amateur player. When you are playing for nickels, dimes, and quarters it really doesn’t matter. I do like to watch the World Series of Poker, however. I am fascinated by the ability of the top players to assess and act on each situation so quickly. There is some luck, to be sure, but over the course of a tournament the best players usually win. It got me thinking about why they are so good at taking advantage of “lesser” players. Here is what I have come up with:

Data: The best players know the odds of winning every hand, all the time. It is very rare that you will see a poker professional make a mistake based on the data at their disposal. The information is available to everyone, but the best know what to do with the data and usually act accordingly.

Know Their Competition: There is a lot of talk about being able to “read” another player, but it is more than seeing a facial expression, tick, or change in behavior. The professionals look at betting patterns and changes in those patterns. They realize that the data available to them goes way beyond the calculated odds of winning a hand. They look at both the quantitative and qualitative information accumulated over a period of time and use it to beat their competition. These “tells” give them a distinct advantage over their competition.

Exploit & Mitigate: Kenny Rogers got it right when he sang, “You’ve got to know when to hold ‘em and when to fold ‘em.” With the accumulation of data (quantitative and qualitative), the best players will exploit their competition when the timing is right, but they will also mitigate their losses by getting out of a hand. It is as much fun to watch a player fold his/her hand just when it looks like they are heading for a big loss, as it is to watch them take advantage of a lesser opponent and take the pot.

They Have a System: The best players use a system. Some are very aggressive, while others are more conservative. Some will play a hand, while others decide to fold with identical cards. Some are very vocal, while others are quiet. Some are emotional, while others remain cool. There is not a right or wrong, but the top players all have a system that works for them. It is very rare that a good player will let his/her emotions dictate their play. When players “meltdown”, it is usually because they have abandoned their system.

They Manage Their Resources: Amateur players will very often lose sight of their resources, inevitable leading to a “bad beat” or a “bust”. Pro’s will very rarely make the same mistake. They lose hands. That is the nature of the game. They will not typically, however, overplay a hand. The result is that their resources last longer, offering them more opportunities…additional hands to play.

Ebbs & Flows: The previous point about managing resources is important because the top players understand the natural ebbs and flows of the game. Some players get hot, while others get cold. This is true for even the best players. By managing their resources, the professionals get to works through these patterns, accumulate more data, and act when the timing is right.

They Eliminate Biases: Because they are so adept at analyzing each situation, the professionals eliminate biases from their thought processes. Inevitably, each player will have to deal with someone they don’t like, or where there is some history. The best players will remove the historical bias and only focus on the present situation. They will absolutely use historical knowledge, but they will remove the “noise” from their analysis.

Now consider those companies that are great at managing channel relationships. Every one of them shares the same qualities of the best players. By the way, you can apply these same points to any superior sports team, company, charity, non-profit, or politician. I didn’t include “passion” in my list because I think that even amateurs can have passion. Certainly all of the best companies, sports teams, politicians, etc. all have passion for what they do.

Would love to hear your thoughts on this list and any other qualities that you would like to contribute.

E + A = P

Every once in a while we find ourselves surprised by a small nugget of wisdom that comes from the least expected sources. It might be an observation from a child, a suggestion from a new hire, or inspiration from a middle school soccer coach. The later is what happened to me just this past week. One of my kids plays soccer on his middle school team. This is a relatively small school (only 100 kids per grade) and the soccer team only has twelve players. Basically that means that most of the kids play the entire game, usually against much larger competitors in terms of physical size and number of players. Our boys are not particularly skilled and there is not a single standout player; you know, the kid that can take over a game singlehandedly. Our team is 5-3 half way through the season. Not bad.

After every game, our coach sends out a game recap. Usually these are fun, because each of the boys typically gets a mention about something they did well during the course of the game. After their most lopsided loss (7-3), the coach sent an email that took a decidedly different tone. He wanted to share with the team and us parents his E + A = P philosophy. He believes that regardless of how big or strong the opponent, our kids can win through a combination of Energy and Attitude.

Energy + Attitude = Performance

The team has not lost a single game since that email was sent. The boys are first to the ball, they play physical, and they can be relentless when the game is tight. Most impressive is the positive attitude and unselfish play of the entire team. There are no hidden agendas, if you will. High energy and a positive attitude have translated into an elevated level of performance.

I think that E + A = P translates nicely to relationship management. Without effort and the right attitude, it is extremely difficult (if not impossible) to maximize the benefit of a great relationship. Have you ever been part of a relationship that was so good that it seemed effortless, only to see them turn over time? Unfortunately, even the best relationships require effort…you have to continue to foster and grow the partnership. I have also seen great relationships turn sour when a new party is introduced into the association. Maybe this individual has their own agenda, a chip on their shoulder, or something to prove. Regardless of the reason, the attitude takes a different tone and the relationship suffers.

Here is the lesson. Even the smallest of companies can build strong relationships within their channel. The product, however, is not enough. It takes energy and attitude. Sometimes…not always, but sometimes…larger companies can get complacent with their channel relationships. I had one executive once tell me that he expected the channel to deliver “unaided” business. This is complacency and a perfect opportunity for another vendor to win the heart, mind, and soul of that partner simply by using this basic equation…E + A = P.

We have another game tonight…GO CHARGERS!!! With a some energy and attitude we should do just fine.

Belief, Truth, and the Power of Observation

Observation is what separates belief from truth.

It is unclear who invented the Scientific Method, although much of the credit is given to John Stuart Mill, a social, political, and scientific pioneer of the 1800’s. It is likely that the method had roots as far back as the year 1,000, but Mill is credited with formalizing the structure. Regardless of its origin, the Scientific Method has withstood the test of time, because its premise is based on the power of observation.

I am fortunate to have a seventh grader that has reintroduced me to the Scientific Method, but for those less fortunate to share in the joys of middle school homework, here is a brief re-introduction:

There are basically six steps to the method:

1. Ask a question about a phenomenon
2. Make observations about the phenomenon
3. Hypothesize an explanation
4. Predict a consequence of the phenomenon
5. Test the prediction (usually in some controlled environment)
6. Make a conclusion using data acquired

The beauty of the Scientific Method is that, if done properly, biases can removed from the process. Too often in the workplace, many of our actions are based on biases that could alter our decisions. If committed to the Scientific Method, we are able to base our actions on “truths” instead of “beliefs”. This can be extremely difficult to do, especially when our belief systems can be so profound. Have you ever had a “discussion” with someone whose political beliefs are different than your own? These are usually debates where the Scientific Method is missing. The result is typically an “agreement to disagree”…not the result you want when a business decision is on the line.

The relationships we have with our channel partners are often based on beliefs. Sometimes the relationships change and our judgment can be clouded because of an historical bias. This is often the case when a good relationship turns sour, or when a poor relationship becomes solid. We need some methodology to see through the bias so that we can we can make decisions based on current observations and data.

Channel management requires the investment of resources to build a more effective and profitable channel ecosystem. Every investment is critical, especially in today’s economic environment. Using analytics to measure relationship trends will provide data (observations) that will help guide those investment decisions. Do you have a method to identify and observe a phenomenon, question it, hypothesize an explanation, and test the theory? If not, then are you making biased channel investment decisions?

"Our Business Is Different!"

I wish I had a nickel for every time I heard someone proclaim, “Our business is different.” While my response is usually something like, “That’s great! How is it different?” my inner voice is thinking, “God, I hope so!” I hope so because the only way to survive is to be different. Hopefully that means that you are better in some way and not just different to be different. It used to be that businesses had to be different, but in a big way. What I mean is that if you were too small…too much of a niche…it was difficult to reach a large enough community of customers that shared your passion. This is no longer the case. The internet has created a very long tail, one in which even the most unique ideas and products have an opportunity to reach their audience. The result is that it is not better to be huge, it is better to be “different”.

Try this. Google “pool clothes made from towels” and you will find Splash Funwear. Great product that is able to reach a big customer base. This is an example of how the long tail has made “different” vogue.

So, we have established that different is good. My pet peeve, however, is when I ask, “How is it different?” the response is, “Our business is based on relationships.” EVERY business is based on relationships. Let me repeat…EVERY business is based on relationships. This is not different and it is not a niche that you can market. Even the long tail of the internet will not make it so.

When you search the internet for “businesses based on relationships” you will get links to numerous books, articles, and consulting services, but not one unique company whose difference is that their business model is based on relationships.

Business relationships are fundamental…not unique. As such, you have to invest in the relationships that matter most. If you don’t, then you may find yourself in the unique position of being the company whose business is not based on relationships.

Every employee in your company is a Relationship Manager. The receptionist, the customer service technician, the CFO, the channel operations manager, and the Board of Directors…everyone is a Relationship Manager. In everyone’s job description there should be a goal of improving the relationships with the people in which you interact. There should be no exception.

Be unique. Be different. Your business depends on it. Realize, however, that relationships are fundamental and invest in ensuring that the relationships you foster will allow you to continue to be different.

When Relationships Change

Relationships ebb and flow. They are never static and, as such, need to be monitored and managed. The “highs” will inevitably give way to “lows”…and back to highs. Most of the swings are small and don’t necessarily mean that the relationship is changed forever. But even with the small shifts, opportunities present themselves to either mitigate the lows or exploit the highs. Frankly, I think that is what makes channel management fun. It is the opportunities to gain channel loyalty and strengthen relationships through the ebbs and flows that create the potential to grow the business.

Sometimes the shifts are more profound.

Remember last summer when Cisco was sued by Infra-Comm (a Silver designated Cisco VAR) for poaching a customer and giving the business to another reseller (AT&T Business). This was big shift…a fundamental change in the relationship between Cisco and Infra-Comm. Irreparable.

Then there are the waves of change that indicate a big relationship shift, but one in which the relationship can be salvaged with some savvy marketing and relationship management.

Over the past year, Red Hat has made investments in their channel. They have hired experienced channel leadership and started to roll out new channel programs that are creative and well conceived. Just today, they announced their Catalyst Program which is designed to provide the channel with an integrated open source solution. So instead of sourcing the individual piece parts of an open source solution, VARs can potentially use the Catalyst Program to provide a single, integrated solution to their customers. The program is designed to compete directly with Microsoft and Oracle. Cool.

The VAR Guy pointed out that right in the middle of the announcement today sit Tech Data and Synnex. Two Red Hat channel partners, both vying for a big chunk of the open source pie. Tech Data has partnered with HP, IBM, Fujitsu, Dell, and others to bring an open source ecosystem solution to the channel. Conspicuously absent from the discussion is Red Hat. Perhaps that is because Red Hat has partnered with Synnex to launch the Open Source Channel Alliance.

There is a lot of jockeying and it is certainly possible that a collaborative solution to the open source channel opportunity can be reached. It does, however, look like the relationship between Red Hat and Tech Data is in one of those relationship “lows”. The questions are, “Can the relationship survive?” “If not, what are the residual effects to the channel?” “What has happened to the balance of power in the Synnex/Red Hat relationship?”

This should be fun to watch…