Aligning Channel Program Goals to Overall Business Objectives

Like a good spring cleaning, an economic downturn presents an excellent opportunity to thoroughly reassess and, if necessary, retool existing channel programs. But be careful! Unlike sorting through items in your basement or garage and placing them in junk or "keeper" piles, judgment calls regarding channel programs and partnerships are more complex than the question "Should I Stay or Should I Go?" posed by The Clash in a popular 1980s tune.

Underperforming distribution channels are a major source of frustration, even though lagging sales during difficult times are slightly easier to understand (but not accept). Before grading your partners' performance, and certainly before you recklessly wield your red pen signifying their failure, take a deep breath and ask yourself the first of many questions: "What was I hoping to achieve through this channel program?"

While the answer(s) may be highly predictable,-such as, attaining steady incremental revenue, increasing geographic coverage, reaching new groups of end users, or simply achieving greater market coverage without hiring additional internal staff-these objective are essential elements to an effective assessment and possible retooling of your channel program.

Don't stop there. You may need to convene an all-inclusive meeting of the minds, encouraging open and frank discussion among the top executives and sales personnel from your own company and your channel partners. Just as importantly, you must poll a full spectrum of end-users, from your best, longest standing customers to fledgling buyers who require nurturing to grow.

Only after everybody weighs in will you be able to accurately and objectively assess original and existing business objectives and determine whether your channel program needs to change-and how. In addition to synergies with your overall business objectives, ask yourself and your partners the following:

o What is the justification for your existing channel program? Has it needlessly deviated from its original intention or goal? Or have changes in your business or the overall economy dictated change?

o Are effective yardsticks in place to gauge your program's success? What changes must you make to achieve more meaningful and accurate measurement?

o Apart from increased product and service sales, what behaviors are you trying to inspire among your channel partners? Are the carrots you provide enticing enough? Or are they snack-sized?

o Is your product and service suite updated and in demand?

o Do you have a channel program execution strategy firmly tied to your overall business objectives?

There's no question your channel program and your partners are the keys to your organization's success. Your encouragement of an open, all-partner dialogue will clear any misconceptions or misunderstandings, providing a level of satisfaction and mutual benefit that far outweigh the temporary good feelings evoked by an uncluttered garage or basement.