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INSIDE CHANNELWEB

Dell's Channel Chief: 10 Steps We're Taking To Avoid Disaster


By Craig Zarley, ChannelWeb

5:07 PM EST Tue. Nov. 27, 2007
Page 2 of 2
6. Hold partner summits.

In progress. Davis said Dell has actively sought input from its existing partners in designing the new channel program and has plans to hold meetings with partners to get more input once the program rolls out.

7. Deal registration is a must.

"I hope we nailed that one," Davis said. Deal registration will be an integral part of Dell's new partner program. The registration program has account size threshold barriers that will start at a specific dollar level and gradually be lowered over time to include smaller SMB transactions. The registration program has specific strategies for accounts where Dell is currently doing no business, where it is already active in an account, and the vast gray area where it has sporadically sold systems to the customer.

Davis said he likely won't fire direct sales reps that don't honor partner-registered deals or that attempt other aberrant behavior designed to switch partner-led business to direct. Rather, he said he'll sit down with the offender and try to understand what went wrong. If the behavior becomes habitual, disciplinary action will likely be taken. "The goal is to build trust," he said. "And to do it in a professional way with the [direct] team and with partners."

8. Partners need to make money too.

"We are focused on that in terms of leveraging our operational efficiency," he said. "And we are going to work hard over the coming quarters to deliver all of our enabled services to and through channels, which will be a great opportunity for our partners." Davis stressed that compensation for Dell's salespeople is the same whether the sale goes direct or through a partner, giving no reason for direct people to undercut partner pricing. Still, watch out here. Many customers don't care about deal registration. Dell needs to make sure large partners that may receive bigger discounts, don't pouch accounts from smaller solution providers.

9. Do all of the above as quickly as possible.

What can Davis say except, after six months, the wait is over. It's coming next week.

10.Top management needs to take the lead role in building and enforcing channel strategy.

Yes. We are being redundant. But unless Dell's top management is committed to this channel push, it will fail. Davis reiterated that top Dell management is on board. We hope Dell is serious about making this channel push work. If it is, good luck rookie and welcome to the major league.

 
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