Attention & Authenticity

Richard Heene, the father of the six year old “Balloon Boy”, got what he wanted…attention. This whole week we have heard about Heene and his antics, but at what cost? It is easy to get attention. Reality TV and the internet have created the ability for anyone to get attention. As a marketer, one of our responsibilities is to generate awareness for our company, products, and services. But that is not our sole responsibility. We all carry the responsibility of authenticity, as well.

I believe that marketers are really storytellers. We develop campaigns that tell a specific story to a specific audience. Our goal is ultimately to get the audience to purchase what we are selling, but it all starts with a story. We talk about being the fastest, smartest, biggest, smallest, or easiest. Whatever our “-est”, we build stories that demonstrate why it has value to our customers. The hard part is not telling a story, but telling an authentic story. This, to me, is branding.

Making unrealistic or inauthentic claims will ultimately damage your brand, your reputation, your sales, and your business. In the past few weeks we have seen a number of announcements from major IT vendors regarding their channel programs. Oracle and Avaya quickly come to mind. Both of these companies are telling a “channel friendly” story. The problem is that, in the past, neither of these companies has demonstrated the behaviors consistent with their claims. While the new programs appear to be positive from a channel perspective, the jury (in this case, solution providers) is still out. They want to see if the stories are authentic. I don’t want to be negative on either Oracle or Avaya, because I believe they are moving in the right direction and certainly companies can become outstanding channel champions after a period of less channel commitment. HP comes to mind.

One of my tenets to effective channel management is “mutual commitment”. This is not something that can be accomplished with a single initiative. Establishing mutual commitment takes time and consistency. That consistency spans your entire organization. It is not enough for the channel leader and channel managers to demonstrate their commitment to the channel. The executive team, sales organization, service and operations, marketing, and customer care teams all need to be part of the commitment, as well. When you achieve this level of commitment, you will have an authentic story.

Cisco, as an example, tells an authentic channel story. For years, Cisco has demonstrated commitment to the channel and greatly benefits from their consistency. Even when they mess up (yes…it is true…sometimes even Cisco makes mistakes), the channel is much more willing to give them the benefit of the doubt. Those that have not demonstrated the consistency in their channel strategy and commitment will likely find a much less forgiving channel.

Channel leaders…tell your stories, but make sure that you are not “Pulling a Heene” for some short term gratification at the expense of your long term relationships.

Kill the SWAG

It is time to get rid of the SWAG. I don’t mean how the Urban Dictionary defines SWAG (“the way one carries their self”) or the “Stuff We All Get”, sometimes called “chotchkies”. What I mean is let’s get rid of the…

Silly Wild Ass Guess

With all of the information available to us, why is it that the SWAG has become common business lingo? I can’t imagine what compels a person to proclaim, “I have a SWAG” or “It’s just a SWAG” in front of their peers, subordinates, superiors, or even their customers. Yet, as I am sure you can attest, we hear this all the time. It is time to kill the SWAG!

I was reading through the 2009 Fortune 400 and it occurred to me that in virtually every situation the wealth created was due to hard work, persistence, timing, and/or brilliance. I seriously doubt that any successful business person made their wealth by guessing. Naturally, some were lucky or born with the right last name, but the actual wealth created was not the result of a SWAG. Their “swag” did not come from a S.W.A.G.

Our job as marketing leaders and managers is to present and implement the best solutions possible. We assess and mitigate risk. There is no such thing as a guarantee, so we tap our resources and make decisions. We do not guess or leave the result up to chance. Channel leaders make these decisions every day. Luckily we have so much information at our disposal that the need (or temptation) to guess is unnecessary.

Perhaps this post should have preceded the last two that I wrote about intuition, experience, and the heuristic method. We use processes and methods to help us gather, organize, and assess opportunities and risk. These processes apply to absolute, quantitative data, as well as instinct, intuition, gut-feel, and historical bias. The result is that we can present an idea or solution without the SWAG.

Who is with me? Let’s kill the SWAG!!!

Managing Uncertainty

It is not about intuition. It is about what you do with it.

I fear that my last blog post about heuristics missed the mark. I received a few comments that made me realize that perhaps I suggested that having intuition or experience was a necessary part of relationship marketing. Of course it is…and many helped point that out.

What I was trying to convey was that while “art & science” is required to build effective relationship marketing campaigns, it is more than just making assumptions, having intuition, or knowledge from past experiences. You must have a process (some refer to it as the heuristic method) in which to take your historical, and sometimes qualitative, data and apply it into something meaningful and tangible. The Peyton Manning example was an attempt to highlight the method, not the intuition. My guess is that Manning uses some kind of checklist as he surveys the defensive scheme in front of him. Maybe something like:

• Is it a blitz package?
• Where is the Strong Safety?
• Are they playing zone or man-to-man?
• What have they done in this situation before?
• Etc…

Manning takes this information, adds in the “scientific” data (down, distance, score…), and gets the answer he is looking for. His intuition and knowledge is put through a process and aids in determining the right execution strategy.

We have all done this at one point or another. Think about buying a house or choosing a university. Every time that I have purchased a house, my wife and I have created a list of “must-haves” and “nice-to-haves”. We then weight their individual importance and grade each home on each of the selection criteria. There are certainly some things that are absolutes like the price range or number of bedrooms. But there are also more subjective criteria like location, traffic patterns, quality of schools, or number of kids in the neighborhood. Based on our intuition and past experiences we can make a reasonable assessment of each of these less tangible criteria. The results are not perfect, but close enough because we trust our heuristic method.

Anyone that has developed and reviewed an RFP has likely used some kind of heuristic method.

Let’s take a look at Relationship Marketing. In most cases we have absolute data (revenue, profitability, growth, rate of growth, share of wallet, etc). This is data that cannot be disputed. We also have less tangible information. Our intuition may tell us that the relationship is still strong, even though the absolute data indicates otherwise…or visa-versa. The challenge is then twofold:

• Can we trust or intuition?
• How do we apply those heuristics into a process that will help us with managing that relationship?

The art of relationship marketing (heuristics) is applied to the science (loyalty scoring, or whatever measurement you use) to get as close to perfect as possible. This is what I mean by saying that the art and science are not mutually exclusive…they have to go together.

So, experience and intuition matter, but not nearly as much as what you do with it.

Relationship Marketing Heuristics

Wouldn’t it be great to be presented with or provided perfect information…all the time. You would be able to use this information to build perfect programs, engage in perfect conversations, build perfect solutions, have perfect relationships, and hire perfect employees. Your company, products, services, partners and customers would all be perfect. We are all taught to strive for perfection, and we should. After all that is the perfect goal…perfection.

Reality, however, is that perfection is unattainable. It is unattainable because the information presented to you has two fundamental flaws:

1) The information reflects a single point in time, so no matter when you get it, it is already out of date. Undoubtedly the information has changed…it is no longer perfect.
2) Much of the information we receive is based heuristic knowledge…that is, it is based on some level of intuition, rule of thumb, or guesstimate. It is not perfect because of human interpretation that is based, at least at some level, on historical bias.

Don’t worry…this is not bad news. In fact, it is one of the reasons that we, as marketers and relationship managers, have careers. Our job, whether working directly with consumers or indirectly through channels, is to use our skills to gather and interpret all of the information available to build the best possible programs, campaigns, communiqués, and relationships possible. They may not be perfect, but we are asked to get as close to perfection as possible.

I have used this blog to discuss data analytics quite a bit over the past few months. Instead of rehashing the posts, you can check them out here:


Lessons from the WSOP
Belief, Truth and the Power of Observation
Ch…Ch…Changes
Pyramid vs. Diamond
Different Types of Channel Relationships
Strategic Targeting


Instead, I wanted to spend a little time discussing heuristics. Heuristics is an extremely important part of relationship marketing. Individuals with the ability to use their past experiences and intuition in conjunction with effective data analysis, are rare. But it is these qualities that are necessary to make insightful, creative, and unique decisions, especially in times of uncertainty. Heuristics is the ability to discover or learn through investigation. We use assumptions, intuition, past events, and “rules of thumb” to add to the quantitative data we have at our disposal. While we won’t have “perfect” information, we have enough to perform an informed analysis and execute.

We all use this process frequently. For example, I have posted a link to this blog on a number of LinkedIn Group sites. I joined many of these groups because of what I know about either the members of group or the purpose of the group. My decisions were not based on perfect information. In most cases, I have been pleased with the groups and the content they provide. In some cases, however, the groups have been “duds”. Likewise, those of you who clicked on the link and are now reading this, did so because of some assumption or intuition. Perhaps you enjoyed a previous post or maybe the topic was of particular interest. There was no guarantee that you would get what you wanted or expected, but you chose to check it out because of some historical context. This is how social media works, in general. We receive some content and use heuristics to decide to send it on within our trusted network. It is not perfect, but more times than not, those receiving the information will be pleased with what they receive. We do not wait for perfect information before we forward or retweet. Likewise, it is not random. We don’t send everything to everyone, because we know that not everyone would find the content interesting or of value.

Many people refer to marketing as a blend of art and science. I agree. The art is in one’s ability to apply their intuition, make accurate assumptions, and apply a methodology to build insightful and creative marketing solutions. The science is in the application of data analytics based on ALL of the information at our disposal. These two things (the art and the science) cannot be mutually exclusive. They are both required to build effective relationship marketing campaigns. Recently, someone asked whether channel data integrity is important. Naturally, my response was “absolutely”. But we have to make sure we see beyond the absolute numbers and apply a methodology for including the more qualitative information at our disposal. Remember, what we know may not be captured in a database somewhere. We need to be able to tap that knowledge and apply it to the quantitative data set to get as close to perfection as possible.

Warning: Sports analogy follows:

Peyton Manning is a master of heuristic methodology. Think about what he does on every play. First, he assimilates the facts…the indisputable facts presented to him. He knows the score, what down it is, how many yards he needs for a first down, and his personnel. He knows the weather, temperature, and wind direction. These are all facts. As he gets to the line of scrimmage, he starts his heuristic method. He knows the defensive tendencies, their formation, and the opposing teams coaching philosophies. While this is not absolute data, he can use it to make an informed decision. Based on what he knows and what he assumes from his intuition and historical knowledge, he can make a decision about what play to call. He processes all of this in a matter of seconds, makes a decision, calls the play, and executes. He is so adept at using all of the information that his team doesn’t even call plays in the huddle. Manning knows that he needs the data he gets by looking at the defensive alignment to be successful. You can’t get that information in the huddle. More times than not, Manning is correct and his execution is flawless. Is he perfect? No. Does he strive for perfection? Absolutely.

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.