One of the most important, but often overlooked parts of a business strategy is the selection,
development, nurturing, and management of channel partners. From a business acumen perspective, the channel partner could be the only way of getting products and services to the end customers.
Recently, I was conducting a business acumen training program for one of our clients in the chemicals industry. The audience was a group of Emerging Leaders being prepared to move from a functional role into an enterprise role and the primary learning objectives were to develop their strategic thinking and financial management skills to be able to lead a business unit.
I will share that I was surprised by the general lack of awareness of how important channel partners were to this group. Most of them had technical backgrounds and hadn’t had a lot of exposure to the commercial side of the business. However, several commercial leaders in the program were able to share some of the intense challenges they have been dealing with over the past several years when it comes to working with channel partners. As a result, we conducted an exercise listing the characteristics of a great channel partner so I thought it would be nice to share with our blog subscribers.
In order of preference, here are 10 characteristics our group came up with. They are taking this list and creating a “Playbook” for how to more effectively work with their channel partners.
- Business Acumen Competence and Expertise - The channel partner must be proficient in their industry and possess the knowledge and skills necessary to represent and sell your products or services effectively.
- Deep Customer Focus - Prioritizing customer satisfaction is a critical value. A partner who aggressively prepares, understands, and meets customer needs contributes to long-term success.
- Reliability - Trust and reliability are crucial. Dependable partners deliver on their promises, whether it's meeting sales targets, providing support, or other commitments.
- Excellent Sales and Marketing - A good partner is proactive in marketing and sales efforts, actively promoting and representing your brand.
- Strong Communication - Open and transparent communication is vital. A good channel partner keeps you in the loop, sharing insights, challenges, and opportunities.
- Seamless Collaboration: - A good partner collaborates seamlessly with your team, fostering a positive working relationship. Compatibility in workflows and values enhances productivity.
- Versatility and Adaptability - Markets change, and so should strategies. A good partner is adaptable, adjusting to market shifts and evolving their approach.
- Financial Stability - Financial health is crucial for a sustainable partnership. A partner with solid financial standing is more likely to weather challenges and invest in mutual success.
- Innovative Mindset - The business landscape is dynamic. Partners who embrace innovation and are open to trying new approaches contribute to long-term success.
- The Highest Compliance and Ethical Standards - Operating within legal and ethical boundaries is non-negotiable. A trustworthy partner adheres to industry regulations and ethical standards.
In summary, good channel partners can make or break your business. It is imperative that you have a solid game plan that helps you select and manage your partners. We can share from experience that if your channel partners do not have all 10 of these or if they break any of them, then you should start looking for a new channel partner!
