CEOs: Pay Up Now Or Later

How much is your channel chief worth? That's a question every CEO and sales chief in this business should be asking in the wake of a wave of recent channel chief departures at Oracle, Avaya and Sage.

What gives? More often than not a channel chief departure reflects a change in channel commitment from the CEO or sales boss ranks or a blowout with regard to getting the entire organization behind a single channel arrow. The point is no one walks away or gets kicked out the door without a good reason. It often comes down to a disagreement in sales philosophies and strategies regarding translating channel rhetoric into reality. No channel chief wants to be left holding the bag as a vendor reduces its channel budget and winnows its channel in favor of a higher direct-sales quotient. You can't do the job without a budget or the support of the CEO or sales boss.That is Channel 101. That is why in the most savvy companies the channel chief reports directly to the CEO.

STEVEN BURKE Can be reached at (781) 839-1221 or via e-mail at sburke@cmp.com.

Sometimes a channel chief's departure comes down to an irrational arrogance in the CEO or sales chief offices as to the power of the vendor's brand vs. the power of the channel as the trusted IT adviser for small and medium business. That influence, by the way, is growing as businesses look to one solution provider to oversee any or all of their technology needs for a fixed fee. Sometimes it comes down to a belief that a channel chief is as replaceable as a car's oil filter. Not true—he or she is instead the spark plug that powers the sales engine in the field.

The channel chief drives sales just by the nature of his or her personal relationships with solution providers. It takes a long time to build those field relationships. And when the channel chief is gone, the vendor starts from ground zero building those relationships again. What's more, it opens the door for solution providers to look at an alternative vendor or brand. Solution providers aren't stupid. They know a channel chief departure usually means a change in commitment, and they are looking for a clear sign that is not going to happen.

At the end of the day, what all this turnover madness comes down to is a serious disregard for just how important a channel chief is in driving sales and brand influence among the channel sales force in the field. It requires the most gifted, passionate and influential executives to keep channel sales growing. The truth is, most channel chiefs aren't paid enough or valued in the organization. They should be on par with the sales chief, who often gets undue credit for success in the channel trenches, while the channel chief often eats dirt.

What channel commitment signs are you looking for?
Let me know at sburke@cmp.com.