Channel Partner Planning

Putting together a comprehensive plan is critical for the success of your channel partner planning program. Unfortunately many companies don't plan effectively if they plan at all. You're probably falling victim to your competition's plan, if you don't construct a plan for your channel partners.

In addition, you need to put together a plan, and execute it properly or you're teaching your channel partner, and your sales support team, that you are not serious. The unwritten message is that it is OK to ignore you.

In putting together your channel partner plan, begin by putting together the best plan possible without having your partners in the room with you. This allows you to go to your channel partner with a professional plan that shows you have put in the effort and have done your homework. Also, you can use the draft plan to direct the discussions around a logical Channel Partner Planning format. Having your channel partner in the room with you too early when you're doing your initial planning, often just leads to a gab fest and a directionless event.

The first thing you want to do when putting a Channel Plan together is to assess your strengths and weaknesses in relation to your current business situation and relationship with the partner. The assessment should include the following questions:

Assessment of Current Business State

• Your product's fit with their expertise and business model?
• Does the partner address the correct market and customers that are appropriate for your products or services?
• Is the partner financially secure and profitable so they can pay their bills and will be there for you year after year?
• Are their customers satisfied with their performance and business practices?
• Is there a corporate cultural match so that you and your partner will conduct business in a manner that each of you respects?
• Will there be any unintended consequences or risks from working with this channel partner that could have a negative impact on your business or their business?
• Can the partner grow at the rate you want them to grow or are other factors that will get in the way and prevent the growth you're looking for?
• Do they have the technical competency required to sell your whole product and are they willing to be trained to enhance their product knowledge and technical competency?
• Does the partner market effectively to the appropriate market for vertical industries and geography?
• Are they sales ready, capable, and willing to sell your product?
• Are their operations professional and functioning efficiently?
• Do they have a management staff that is competent, motivated and committed to working together?
• Do you have the right degree of relationships at all levels within the partner's organization?
• Are your two companies linked appropriately in all business functions so communications and business operations perform effectively?
• Are other parties needed to create a whole product solution to the customer?

Planning Considerations

After you have done a proper assessment of your channel partner's strengths and weaknesses, start to determine areas for improvement and issues to address. Analyze their business goals and objectives, and match that with your "go to market" goals and objectives.

Next, look for areas that are common to both companies. These should be the areas that you focus on for joint revenue objectives that will increase your current run rate.

The partner plan that you create should pay attention to areas like:

• Identifying the key stakeholders within your channel partner's organization
• Documenting the current situation in terms of:
  • Business capabilities
  • Sales and go to market readiness
  • Relationships at all appropriate levels
• Partner growth strategies for developing their business
• Joint revenue growth objectives in areas where both companies have a focused interest
• Non revenue growth objectives like marketing and relationship enhancement
• Action plan for the next 90 days
• Resources that are critical to your success
• Meetings, communications, metrics, and governance of the plan you create
• Reviewing appropriate aspects of your plan with your channel partner to get confirmation and buy-in

Conclusion

Channel partner planning and having a comprehensive plan for your key channel partners is imperative for growing your business. If you don't have a plan that is agreeable to your channel partners, they will conduct business for their own best interests which may or may not benefit you. By creating a plan and reviewing it with your channel partner to get their involvement, ownership, and commitment, you will align both companies to get the business results that you are both looking to achieve.

If you have any questions regarding channel partner planning, please contact us at info@sales-management-insight.com or call Lynn Shively or Barry Shamis at 206 395 4388. We are always happy to answer your questions.

Related Articles

• Channel Management
• Recruiting Partners
• Channel Marketing
• Channel Sales

Related Articles

• Channel Management
• Recruiting Channel Partners
• Channel Marketing
• Channel Sales

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