Channel Operations Checklist

This checklist is a for documenting, usually in measurable terms, knowledge, skills, attitudes and beliefs.  In the context of sales operations the checklist is used to identify strengths and weaknesses in the structure and processes of a sales organization.

Each statement should be evaluated in terms of its perceived importance to the sales organization’s success as well as its perceived ability to execute.   An analysis of the results will focus action on those elements that are considered important but are poorly executed.

Contact us to have an assessment sent as online survey to your sales management team.

Channel Sales Organization Assessment

Channel Design

1) Setting Channel Strategy

We have a clear vision for the objectives we are aiming to achieve with our indirect channel. This vision aligns with our overall corporate strategy.

2) End-Customer Coverage Design

Our indirect channel design respects customers’ needs to buy at different access points. We design the indirect channel structure according to the intensity of distribution we need in the market.

3) Channel Partner Selection and De-selection

We use an iterative process for assessing channel partner capabilities against both end-customer and supplier needs. This process uncovers partners’ market reach, collaboration potential, financial strength, and skill level. We routinely use this information to select, de-select, and segment the best-fit partners.

4) Joint Planning

We engage in hypothesis-led discussions with partners’ senior contacts to identify both parties’ needs and expectations for the relationship and to collaboratively align strategies.

5) Partner Onboarding

We create an onboarding plan to engage new channel partners and educate them on our value proposition, product capabilities, and sales process.

Policy, Process, and Procedure

6) Partner Communication

Channel partners maintain a clear understanding of eligibility requirements, performance expectations, and available support resources. We capture this information in documented, published policies and contracts available to our partners.

7) Transactional Efficiency

We maintain compatible technology systems, including CRM software, to increase efficiency in our partner lead sharing and transaction tracking processes. This two-way information sharing advances the interests of both suppliers and channel partners.

8)  Partner Feedback Loop

We formalize our partner feedback processes (i.e., dealer councils, partner advisory boards) and leverage our partners help to inform our channel support and execution decisions.

Channel Support and Execution

9)  Lead Management

We employ a systematic opportunity sourcing, vetting, transfer, and tracking process that ensures high-quality leads are efficiently acted upon once passed between supplier and channel partner.

10) Delivery and Fulfillment

We have a process which provides best in class delivery and post-sales service to end customers through their preferred access point (e.g., web, channel partner, inside sales).

11) Marketing Support

We collaborate with channel partners to generate demand through co-marketing strategies and campaigns that focus on end-customers rather than products.

12) Sales Support Tools

We provide insights and tools to help channel partners more effectively sell broader solutions and capture greater market opportunity.

13) Channel Partner Development and Upskilling

We have an ongoing, job-embedded training and certification system that enables the development of channel partners. Our channel managers provide behaviour-focused coaching at multiple levels of the partner organization.

14) Channel Manager Development and Upskilling

We have a training and coaching system in place which develops the talent managing our channel partners. Development activities focus on managers’ leadership, coaching, selling, and business acumen skills.

Metrics and Rewards

15) Channel Partner Measurement/Performance Assessment

We have objective, uniform metrics for measuring the performance of both ourselves and our channel partners against previously agreed upon strategies and plans. Both suppliers and partners clearly understand the other side’s expectations of their performance.

16) Channel Partner Incentives

We tie our partners’ incentives (i.e., commissions, SPIFFs, co-marketing support, training resources) to long-term, relationship growth-focused behaviours in addition to short-term, pure volume-based metrics.

iPad in the Work Environment

A couple of months ago my brother-in-law brought an iPad to our home.  Being a technology fan and already an iPhone 3GS user I was immediately fascinated with the sleek new device.  Within a week I purchased one of my own.     While using the iPad over the last two months I have been evaluating its use in a work environment.  I’ve also looked at its potential as a laptop replacement for my son who is starting college this fall.

I bought a 3G model to ensure data access from virtually anywhere.  I also bought the optional Bluetooth keyboard and the RGB display adapter planning to use the iPad with a projector.  I’ve also ordered a USB/SD Card adapter. To access the 3G data network a SIM card from one of the three major service providers in Canada (Rogers, Bell or Telus) is required.  Although my family uses Telus for our smartphones I selected a Bell SIM card.  Bell has a $20 per month plan for 250mb which is the least costly plan from any of the three carriers.  Bell also offers a very extensive hot spot network through their partnership with Starbucks and at Canadian airports.  I counted on using Bell hotspots and my home WiFi to keep my data usage within the 250mb allowance.

Since I’m already an iPhone user it was very easy to start using the iPad.   Synching up with iTunes brought all my iPhone applications to the iPad.  A number, but not all, of the applications worked well.

I was disappointed that the iPad does not use the new OS4 operating system used on the iPhone.  The multi-tasking and folder capability of OS4 are a major improvement for running and organizing your apps.  Without folders it is very difficult to sort and categorize the applications.  You have to use the search function or flip through screen after screen to find the application you want to use.  Single tasking also means that, with few exceptions, one application terminates when you start another.

During several GoTrain commutes from Newmarket to Union Station the iPad proved to be a very handy device.  It was great for reading email and doing customer and opportunity research on the internet.  It made the hour long commute very productive.  One of the great advantages of the iPad is its long battery life.  Its virtually an instant-on device since you can leave it powered up without worrying about battery life.  It extend power it does make sense to power off WiFi, Bluetooth and Cellular access when not in use.

Using the iPad with a projector is a bit problematic.  Think again if you expect to project the Ipad screen and any application you run.  It just doesn’t work. Movies and Apple Keynote automatically output through the RGB adaptor.  Using a third party app like 2Screens will allow you to output files so long as you stay within the 2Screens application.

Other weak area include file transfer and printing.  The iPad relies on iTunes to move files back and forth.  There is no built in printing.  Third party apps do exist that allow you to move files over WiFi or applications like Dropbox work extremely well.  The same applies for printing over a WIFi network.

So bottom line on using the iPad for work?  Not quite ready.  It starts to be a contender once OS4 is available which allow better organization and multitasking.  Anyone using an iPad still needs a laptop or other base computer.  It does have a place along side a laptop but does not replace it.  My son is going to go with a laptop rather than the iPad.  Printing is a bit too problematic and since he is the only Blackberry user in the family needs a PC to dock and transfer music files.

Economies of Sale

Ever wondered how much a salesperson’s time is worth?  Or what kind of productivity is needed to support a sales expenditure?  Let’s do a little financial analysis to see.

A critical element in setting a sales budget and determining the required productivity level is the expense to revenue ratio, E/R.  The E/R number represents the proportion of each revenue dollar that is spent on sales.  The correct E/R is determined by the type of business and the financial construct of the business.

Financial Construct

Revenue	100%
Cost of Revenue	55%
Gross Margin	45%
R&D	10%
G&A	5%
Marketing	5%
Profit	10%
Sales Expense	15%

Let’s use the example to the left which represents a typical B2B financial construct.  This model assumes that each dollar of revenue will result in a gross margin of 45%.  The following costs are then taken from gross margin:  Research and development (R&D) 10%, General and Administrative (G&A) costs of 5%, Marketing expenses of 5% and Profit of 10%.  That leaves 15% of each revenue dollar to pay for all sales costs.

A sales department running on a 15% E/R needs to generate $6.67 dollars of revenue for each dollar it spends ($1.00/15%).    Planning to spend $150,000 on a sales person?  That expenditure should result in revenues of at least $1 million ($150,000/15%).  The E/R number represents, in financial terms, the level of revenue productivity expected for each dollar spent on sales.

An important point to remember is that there is more to a sales department than just the sales person.  Sales support such as systems engineers, inside sales personnel, sales management and sales operations need to be taken into account.  Functional requirements such as travel and entertainment, computing and communications, CRM and sales training also have to be paid from the sales E/R.  Depending on the type of business, sales support costs can be up to 2 times the costs of direct sales personnel.  That would raise the productivity requirement of a $150,000 sales person to $2 or $3 million dollars.

The average person works about 2000 hours per year. That assumes 365 days a year less weekends (104 days), less vacations (15), less stat holidays (12) leaving 234 working days.  An 8 hour day generates 1872 hours while a 10 hour day yields 2,340 hours.  We learned above that the $150,000 sales person needs to generate $2 million in revenue.  If working hours are 2,000 per year then a sales person’s time is worth $1,000 per hour ($2 million/2000).

It’s readily apparent that sales productivity is a key element of any business success.  At $1000 per hour there is a real need to ensure that time is spent doing the right things, the right way and at the right time.