The Art of Channel Management

The Art of CHANNEL MANAGEMENT Effective channel management results in faster growth, higher profit margins, more predictability and greater capital efficiency. But managing distributors (and their sales reps) is very different from managing your own sales team for one simple reason: you cannot directly control and oversee them. This leads to the two fundamental challenges of channel management, and six principles to solve them: Performance Management How do you get distributors to continuously put forth their best effort and finest skill on your behalf, regardless of market ups and downs? Measure Input, not Schedule Reward with status, collaboration, not just accountability. just outputs. not just margin. Build a scorecard with KPIS Commit to a transparent Give distributors higher that put a spotlight on improving high-priority capability gaps, not just commercial outcomes. partnership levels to strive for (and lower ones to fear) with commensurate calendar of interactions with your partners across the year that includes various forms of partner support and interaction, not just quarterly performance reviews. privileges (and consequences), not just deeper rebates or bonuses. Transition Management How do you decide when it is time to leave a partner and switch to an alternative, and how can you transition smoothly with a minimum of pain? Plan months ahead, Evaluate how Treat outgoing candidates act, not just what they say. partners graciously, not just efficiently. not just weeks. Avoid turning a former ally into an enemy by taking Prepare for transitions Examine the detail with well in advance based on which potential partners a forward-looking timeline, tailor their proposals to not just as a response to their concerns into account your needs, not just the lip-service they pay to your abiding by contractual goals. even during an exit, not just crisis. rights. Learn more Contact [email protected] to discover what we can do for your multinational business. FRONTIER STRATEGY GROUP www.frontierstrategygroup.com | @FrontierStrtGrp | [email protected]