Part 3: Aligning, Third Discipline of Channel Value Systems

Today's harsh economic climate and quick advancement in technology and business strategies has led to the increasingly cutthroat competition in the various industries in the global market. Channel-dependent companies are at risk of shutting down if they do not act quickly and employ effective methods in their operations and processes. In order for a channel value system to grow and thrive in the present scenario, companies must practice channel stewardship in combination with the proper execution of channel management solutions, strategies and techniques.

The use of partner portals is similarly critical for a successful channel distribution network and effective channel stewardship. Partner portals ensure effective communication and collaboration because they create a common language that all members can comprehend. Having this common language is the foundation of excellent stewardship. This language must be used together with increased transparency across a channel for maximum optimization. It is important that information and other significant resources and programs shared within these portals are accessible. Upstream partners should have a direct and clear view of sales performance for the best possible execution of management activities. This transparency encourages alignment and increase agreements.

Stewardship calls for the administration of three channel value systems disciplines which are mapping, building and aligning. These disciplines create a monitoring system that allows the channel to become a functional body that is capable of self-correction and -improvement. The first two articles of this series discussed the first two disciplines which are mapping and building. This article centers on the final discipline.

The Third Discipline of Channel Value Systems: Aligning

Although shown as the third, Aligning should actually not be saved for the very last. The fact of the matter is that strengthening alignment must be an opportunity in every exercise, discussion and process by presenting new information and screening the dissonance from verbal communication. The channels steward's job is generally to build interpersonal trust and organizational transparency. Stewardship involves engendering the "3 T's" namely truth, transparency and trust. These should be natural and positive end result of mapping and building discussions and exercises.

A core requirement for majority of organizations today is the stewardship of multiple channels. The resolution of channel conflicts and the reconciliation of differences between competing channels must take place near the end of the process of Building and as it approaches the process of Aligning. It is ideally better to address these once there is enough grasp of existing channel structures and an emerging sense of priority channel-specific gaps and improvement opportunities. The ultimate goal is to optimize the best levels of integration, coordination and competitiveness.

In closing, the three disciplines of Channel Value Systems are useless without channel stewardship. It is important to remember that these stewards must be leaders of an industry and possess the will to think outside of the box and break free from old paradigms. They should be open to fresh and new paths for wider differentiation and gain. By amalgamating stewardship with the best channel management solutions and strategies, a company can ensure its survival in the tough economic situation the global market is experiencing today and potentially emerge as a dominant industry leader.