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Dell's Channel Chief: 10 Steps We're Taking To Avoid Disaster
5:07 PM EST Tue. Nov. 27, 2007
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1. Top management needs to take the lead role in building and enforcing channel strategy.
"Not only am I'm very engaged and leading the charge, Michael [Dell] is in great support, and my boss, Paul Bell, [senior vice president and president Americas] is a great support in helping to garner the resources and change the process and help us to evolve the culture so we can be successful with the channel," Davis said.
2. Hire a top-level channel executive from outside the company to run the show.
Not in the cards. We weren't holding our breath on this one, although if Michael Dell wanted to score a major coup, he'd lure former Compaq channel exec and Texas native Ross Cooley out of retirement. Davis emphasized that he's become the leading channel advocate within the company and his previous experience with Dell direct sales gives him an edge where he said the fight will be toughest: Transforming the direct culture within Dell to one that allies itself with the channel.
3. Listen to solution providers.
Davis said the new channel program wasn't designed in a vacuum. Dell currently has 15,000 U.S. channel partners, Davis said. The company sought input from solution providers and will continue to do so in the future. We should add a footnote here. The key is not just listening; it's listen, learn and act.
4. Compensate your sales people more for channel sales than for direct business.
Not going to happen. But Davis said that he's done the next best thing. Direct sales people will receive the same compensation for a channel sale as they will for a direct sale. Still, Davis may have to rethink this one. Neutral compensation is great when you're already a channel player. But Dell has a lot of catching up to do and a bonus for using channel partners would be the best way to transform the direct sales culture. Davis did note, however, that within days of announcing the new compensation formula, Dell direct sales people came forward with about 1,000 accounts that they want solution providers to help them go after.
5. Put feet on the street.
Done. Dell currently has about 350 people dedicated to its new channel organization, about 25 percent of which are field sales reps calling on solution providers. "We will see significant growth [in field channel reps] in the coming quarters," Davis said.
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