Email this article   Print article 


HP's Whitman: Sales Reps That Scoop Channel Deals Will Be Fired

By Kevin McLaughlin
January 30, 2013    8:00 AM ET

Page 1 of 2

Hewlett-Packard is in the process of rolling out revised rules of engagement for its salespeople that spell out what behavior is acceptable -- and what's not -- when it comes to working with channel partners.

The revised rules, to be formally announced next month at HP's Global Partner Conference in Las Vegas, are part of HP's broader campaign to rebuild trust in the channel. They're necessary because some HP salespeople, perhaps emboldened by the leadership vacuum that comes from having three different CEOs in three years, have been working around partners in deals -- or cutting them out entirely by taking deals direct.

Under the revised rules, "HP will not move a customer from an indirect sales model to a direct model on specific registered opportunities without express engagement with the channel partner, and it must be based on customer choice only," an HP spokesperson told CRN in an email Tuesday.

[Related: HP: We Need To 'Rebuild' Channel Partner Relationships]

One interesting aspect of the revised rules is that partners that run into channel conflict will be able to escalate issues to HP executives, which hasn't been part of HP's previous policy. Dean Cappellazzo, CEO of Bedrock Technology Partners, a San Mateo, Calif.-based HP partner, says this is an important point that shows the level of HP's commitment to the channel cause.

"Now HP's executive management is going to be seriously involved in driving sales and profitability to partners," Cappellazzo told CRN.

HP CEO Meg Whitman, who is now intimately aware of the problems channel conflict can cause, has made it a priority to reign in aggressive salespeople. What happens if they don't follow the rules?

"They won't be working here anymore," Whitman told CRN in an interview earlier this month. "We don't have a lot of tolerance for this. If you are scooping a partner deal that you have no business having your fingers in, at all, then we will take care of that. It's not appropriate."

NEXT: HP Getting The Message Out Internally

1 | 2 | Next >>

To continue reading this article, please download the free CRN Tech News app for your iPad or Windows 8 device.
Related: Videos | Slide Shows | Comments

SHARE THIS ARTICLE

More Channel Programs

Recent Articles

Privacy Please: 5 Efforts To Take IT Companies Private

Going private is a hot topic these days, with Websense's $1 billion deal this week and Dell's ongoing effort to become a private company. Here's a look at five "going private" cases -- some that succeeded and some that didn't get off the ground.

50 Cool Tools For Solution Providers

Here is CRN's list of 50 breakthrough tools - software platforms, applications and cloud services - that partners can use to run their own business and more effectively manage their customers' business.

One In Three VARs Says Has Fired A Vendor This Year

A recent partner survey conducted by Enterasys Networks finds that solution providers are calling it quits with vendor partners for a variety of reasons -- with a lack of trust being one of them.

  More Slide Shows




Related Videos
Loading...