Channel Executives Take It On The Chin

Several major vendors have announced changes in channel management and, based on the calls I have been receiving from headhunters, many more are coming. In just the past few weeks we have seen top channel executives leave their posts at Avaya, BMC, Novell and Trend Micro. Just a few months ago, IBM's top channel chief opted to take an earlier than expected retirement, forcing Richard Hume to jump in sooner than planned. In July, Microsoft split the role of U.S. channel chief Robert Deshaies in half, leaving him with sales and giving another executive marketing responsibilities. While some folks were packing up, others were assuming new roles, such as Ted Bereswill, who takes over as Oracle's top channel chief, or Rob McKernan, U.S. channel chief of APC, who got the keys to the president's office but must now fill his old job.

Surely, job security is not something channel chiefs take for granted. A new CEO or head of sales can send them scrambling to find a new job, but there are signs the macroeconomic environment is driving some of these changes. No doubt the economy is making life especially miserable for second-tier vendors that are coping with a difficult market in North America. Pressure from upper management and often from the Japanese or Korean parent companies can be crushing. Ricoh, for instance, is Japanese-owned and run.

Departures or channel management changes are unsettling to partners who have made a substantial investment in a particular vendor and cannot afford disruption in programs. What these incoming executives have to resist is the temptation to make changes so their signature is on a particular program. Oftentimes I hear these executives say two things. The first is that they are going to review the program and change it. That is mistake No. 1. Most partners don't care about the program, particularly in this economy. They care about the product and growing sales. The second step they will take is a whirlwind or worldwide visit to key channel partners.

That is mistake No. 2. Yes, those partners want to be reassured but they are already engaged in actively selling the product. Collecting some data on those partners is good but what is better is time spent with the solution providers who support the rival's brand. They will probably be impressed enough with your call that they will grant you some access. For instance, Oracle's Bereswill, who is coming over from the direct side, should spend as much time with IBM and Microsoft database integrators as he does with Oracle's to get a real feel for the challenges he'll face.

What is your take on these changes? Everything Channel SVP and Editorial Director Robert C. DeMarzo is at [email protected].