Managing the channel in the SME market

In small to medium channel-centric companies, the MD is required to be his own channel manager. Julian Field, MD of CenterField Software, provides some key recommendations for SME MDs who must manage their own channels.

As MD of a small to medium channel-centric company, you depend to a great extent on the capabilities of your channel of partners. But identifying and managing a channel is not a trivial issue. You`re probably not in a position to appoint a full-time channel manager, but need the same level of dedication and excellence as if you had one. So herewith a set of guidelines for you, as MD, to drive excellence in and through your channel.

First of all, partners must share the same ethics as you, have similar objectives at heart, and should operate in the same industries you want to target. Just as you take a while to find the right spouse, so take time to find the right partners to represent you - they are your face in the market. Partners need to maintain a minimum set of requirements:

* Training is a critical issue. The more competent the partner, the more self-sufficient they become.

* The partner is an extended arm of your organisation, so find someone that has the correct support infrastructure.

* Partners must commit to revenue targets. Unless both partners are prepared to commit to meaningful, realisable targets, the partnership will flounder.

* The partner should not have competing products in its stable. This is vital: when it comes to the crunch, a partner might earn a higher margin for its own competing products, and so favour them in a shootout situation.

* There must be quality forecasting and lead generation, with a good chance of closure. The partner needs to understand that the principal has to report, typically by the quarter, on anticipated sales.

* A channel strategy is all about trust. A partner must understand what a company`s motivation and strategy is, from a product and business perspective.

* If the partner closes a big deal, it is important to give it its due. By the same token, the partner must engage the principal in the sales cycle. Too often a partner will keep a principal at arm`s length in the sales cycle, when its presence could make all the difference in shortening the cycle and clinching the deal. Consistency is part of trust. When the vendor commits to something, it must stick with it. Training must also be consistent among all partners. Quite often, there may be a few partners going for the same business. Don`t favour one, as that will destroy the trust of the others.

These guidelines will help you acquire, deploy and maintain excellent channel relationships, without consuming huge amounts of time.