Welcome to 2024. The best thing about a new year… are resolutions. And while most are meant to be broken, professionally it’s the time of the year to reflect on goals and set priorities for the upcoming year.
Hosts Alex and Rick were given the tough task of selecting one new year’s resolve each, if they were Channel VPs or Heads of organisations looking to strengthen their channel marketing game this year.
Closing business in the short term, says Alex, especially in the face of continuing economic uncertainty. Data-driven decision making, says Rick, should be the dominant theme to get greater granularity on your strategy.
And who should businesses focus on? SMB is a clear choice. Why, you ask? Listen on
_________________________
Connect with the podcast hosts 👇
Connect with Channext 👇
https://bit.ly/channext-demo-request
Watch on YouTube ►
https://www.youtube.com/@channext
#partnerrelationshipmanagement #channelmarketing #partnerenablement #Throughchannelmarketingautomation
Welcome to 2024. The best thing about a new year… are resolutions. And while most are meant to be broken, professionally it’s the time of the year to reflect on goals and set priorities for the upcoming year.
Hosts Alex and Rick were given the tough task of selecting one new year’s resolve each, if they were Channel VPs or Heads of organisations looking to strengthen their channel marketing game this year.
Closing business in the short term, says Alex, especially in the face of continuing economic uncertainty. Data-driven decision making, says Rick, should be the dominant theme to get greater granularity on your strategy.
And who should businesses focus on? SMB is a clear choice. Why, you ask? Listen on
_________________________
Connect with the podcast hosts 👇
Connect with Channext 👇
https://bit.ly/channext-demo-request
Watch on YouTube ►
https://www.youtube.com/@channext
#partnerrelationshipmanagement #channelmarketing #partnerenablement #Throughchannelmarketingautomation
Welcome back to partnerships unraveled, the podcast where we unravel the mysteries of partnerships and channel on a weekly basis. My name is Rick van de Bosch and I'm the CEO and founder at Chennext, and I'm here together with Alex Whitford, vp revenue and Chennext. Alex, happy New Year.
Speaker 2:Yeah, I can't believe 2023. It's been a blast. It's also gone so fast. I can't believe it's already the end of the year.
Speaker 1:Yeah, crazy, right. Every year it feels like that. But now it's the new year, yeah, now our marketing leader Mayhug.
Speaker 2:She's promised, or she's made us promise, that we're going to have an absolute argument on the podcast to see out the year around. What if it's? If there was only one resolution? What would the only resolution for a VP of channel look like?
Speaker 1:Yeah, I'm looking forward to that. Finally disagreeing with you on some stuff.
Speaker 2:No, 100% no, absolutely agrees. It's just full debate mode and I've come prepared, so beware.
Speaker 1:Excellent, and do you have any personal resolutions as well?
Speaker 2:Well, the whole business, or whole business, but lots of people within the business have signed up to do the Amsterdam marathon in September 2024. And so training is on the way. But, yeah, my big goal this year, personal goal, is to be able to run a marathon and do it well.
Speaker 1:Yeah, I would like to disagree with you on this as well, but I'm also going to run the marathon, yeah.
Speaker 2:Yeah, all right, sorry, mayhug, one agreement. I promise it stops, there, excellent.
Speaker 1:Let's dive in. Indeed, I think that's one question. Indeed, like every time, every year, you start with many resolutions, also when you're building your 2024 plan, et cetera. There's many good stuff that you want to focus on, but the word focus is crucial there and therefore today we're going to have to discussion. If there would only be one thing you could focus on, or if you could only have one resolution which you want to have for 2024, for your channel, as a VP of channel, what would it be?
Speaker 2:So here's my pitch as to why my resolution is the best. 2024 is going to be a really tough year from an economics perspective. Right, I think we're going to be seeing global recessions. I think we're in one already, but I think that's going to continue to get worse. Inflations on the rise, it's even harder to get hold of, cfos are more in control of budget, and that means for the channel it's going to be a very, very tough time. So my New Year's resolution or the New Year's resolution, I think, is the most important priority for a VP is to get the channels far more focused on short-term opportunity creation and closure. To me, I think lots of channel account managers are relationship people, which is excellent, but right now we need to be encouraging our partners to find open and close opportunities in the short term, because that's going to get us through this tough period and ensure that we come out the other side of the recession looking strong, with healthy bank balances, so that then we can start setting ourselves up for growth as the recession ends.
Speaker 1:Though I think that creating opportunities is very important in the channel, I think we're actually already very quarterly driven within the channel and I think it's important that, as a VP of channel, you really set direction for the long term, especially in a year, indeed, or in a period of time where we're in recession. I would like to start my pitch with a quote from the Intel X Intel CEO.
Speaker 2:Where it's come prepared.
Speaker 1:I like it. Yeah, I want to beat you today, yeah, which is bad companies die in a recession. Good companies survive in a recession, but great companies reinvent themselves during a recession, and I think that is so crucial to do now as a channel and as a VP of channel. This is the moment to really set the direction for the long term of channel, but also make sure that you prioritize the projects that we've been pushing forward for so many times, because we had to hit the quarterly revenue goal, because we had to do the short term stuff.
Speaker 1:And the thing that's really top of mind with me because I hear it from so many global partner and channel teams that I'm speaking with at the moment is data hygiene, and it's so crucial to have that right, like everywhere where I get to is like, yeah, or CRM is just all the data is outdated, we don't have we don't have the right context of our partners, we can't segment properly, we can't connect it with our other systems, et cetera, and if you look at it, we're not just in a recession but also, at the same time, our channel and our ecosystem is becoming more and more complex.
Speaker 1:We have different sets of partners, we have tech alliances, we have system integrators, we have resellers all different types of implementation partners and therefore you really need to attribute things differently as well in terms of partnerships and need to show the value, because you have your transactional partners, but also a lot of other different type of partners, and if you don't have that specific area of your channel right and you can attribute, for example, within a deal, who was the implementation partner, that we have any integrations that were aligned to it, what effect did it have on lifetime value, on that revenue retention, et cetera we can't shift towards where we want to go from a channel perspective, which is a very broad ecosystem perspective within our partner base, and I think, therefore, it's crucial that you really prioritize that project ASAP, because almost every vendor I speak to is struggling with this heavily.
Speaker 2:Well, I think data hygiene and better data is a good goal, not the sexiest and newest resolution, I might add. I think we are going to see channel businesses die. Right, let's be really, really open in 2024. Lots of big technology businesses are really going to struggle, and for me, you've got to be prioritizing the number people's jobs, keeping the right business going, and that just means pivoting to become a more efficient, effective business, creating and closing deals. While I think a lot of the channel is set up to facilitate deals really well, that isn't the same as driving creation of opportunities, and so we've got to be fighting right.
Speaker 2:We've spoken a lot how revenue is war, and it's a choice, right. Is the business going to go to our competitors or go to us? And I think it's damn well sure that 2024 is going to be the year that that business comes to us, and so I've got my cams focused on where are those opportunities? How are we going to inspire our partners to create them and bring those opportunities to us? I think data is important, but I'd hate to have the perfect 2025, 2026 and 2027 outlook and find out that I didn't actually make 2024. And so for me, in a recession, it's time to batten down the hatches and ensure that we are going to win, and we're going to do that by getting really dynamic and aggressive in the channel, focusing people on deal creation today to ensure that our outlook long term looks a little bit more positive.
Speaker 1:Yeah, I partly understand where you're coming from, but the only way to do that and you use the word efficient is by having the right data in place. Like we've seen it all throughout all the channel teams we've been speaking to, their resources have been cut, their budgets have been cut. Their targets are increasing. Yes, you are right, if we don't hit our targets at all upcoming year, then either the business dies or your own job dies. We need to be realistic there as well.
Speaker 1:But I think it's so crucial to get that part right, because indeed, we know that we need to do so much more with the resources that we have, and the only way to do that is with proper data and with automation, and therefore we need to facilitate and skill our activities and the team there, and that's the only way we're actually going to hit the 2024 targets and budgets as well. Because, yes, we got these new targets. They are higher than last year. We've got less resources and budgets than last year. So how are you going to do that? Not by just focusing more on opportunities you need to do that anyhow but you also really need to make sure. How are we going to skill that motion as well?
Speaker 2:Time for me to go on the offensive Right. While I understand what you're saying, you're talking about a data revolution a great idea, I think a really strong way to drive a channel forward hard and risky to execute in the short term. For me, what I wanna be doing when I know deals are tight is focusing on the deals. I think you've got a brilliant strategy to take you through to 2025, but I don't think it's easy to make that impact in 2024. So, when people's jobs are on the line, when my job is on the line, when the channel's really struggling, I'm focusing at the cold face where I know I can make an immediate impact and change the course of this business going forward, and that means focusing on the end users, focusing on the partners that I know are contributing to revenue today. I think we're perfectly aligned on how data is valuable, but do you really feel it can make an impact on the 2024 number?
Speaker 1:It depends on how you approach that. Like, if you do it as a lot of the enterprises are doing it, we want to do a complete overhaul of our full CRM and all the partners at once, then indeed, it's going to take a very long time, but what you should do is really look okay, what is the impact we want to make within 24? Who are our most partners where we think we want to make that impact together, and that's where you need to focus. So, on one hand, I want to stress it's really important to not forget about the long term, because I think, if you're just looking at 2024, as a VP of channel, you will be out of a job in 2025. And that's why I think, therefore, it's crucial to prioritize projects like these.
Speaker 1:But there, indeed, it is also very important when you look at data, like, where do you want to make the most impact short term, and that needs to be aligned with your short term goal. So, if you are just if you've told management that you're all in on alliances and tech partnerships for the upcoming year, they need to get your data right on that specific area right now. Make sure you have the right properties in your deals, et cetera, that you can tech them so you can show do we have faster deal velocity, do we have quicker or do we have higher ACV? Do we have higher net revenue retention, et cetera. So that's the way to approach it and already make impact on a very short term in such a case.
Speaker 2:And how do you think adoption goes for that through your cams, through your mams, through your partners, when they're really struggling for number and they're being asked to add in extra admin responsibilities? Do you think that's going to drive the right culture and the right behavior out of your organization? That's the balance right.
Speaker 1:I think that's always a bit of the balance between the short and quarterly goals we're working on and the long term where we want to head. But I am very sure if you don't do that properly then you won't make the right decisions. Maybe for Q124 it's too early, but then in Q224, q324, if you keep walking in the wrong direction, then you won't get to your revenue targets anyhow, sure.
Speaker 2:I think the bit I understand where you're coming from. I think the bit where my priority is is well, let's pick a hypothetical company. As long as my business isn't failing right now, as long as I'm being successful today, I want to continue. What's making me successful? And for me, the best sales organization, the best partnership organization, the best channel organizations that I've worked in they've had a mantra around deal obsession, partner obsession, customer obsession.
Speaker 2:And while I think data is a great tool to help me, I know what my sales organization is about and it's about building the right people, the right culture and chasing the right opportunities to ensure that we win right. And for me, data helps you do that, helps you make good decisions. But I know if I've got the right relationships and I'm driving my organization the best, that's gonna help me continually improve right. I don't think channel needs to be run from the stratosphere 10,000 feet and I'm just analyzing data. I know that people are the root of my business and I know if I drive the right people and the right culture, we're gonna get the outcomes I need.
Speaker 1:But I think the thing you're overlooking is when you build a product, you're always talking about tech depth, like the more you build, the more you extend, etc. The more tech depth you have. And what I've seen with an almost every channel organization is that they've built up a lot of channel depth Like it's one complete mess the partner programs they don't know where which partners fit where anymore. Like they want to reassess a lot of things. They want to do proper analysis on where do we need to drive, or camps actually, and if you don't sort that, then you literally can't make the right decisions there.
Speaker 1:And yes, camps need to be very driven in terms of a quarterly focus etc. And they need to be driven in the regions, etc. That's just how channels operate. But if I was a VP of channel, I would really spend a lot of my time and focus together with my program managers, together with my operations, people, etc. And how are we going to drive that specifically? So we can make sure that if we drive the camps continuously, that we drive them in the right direction, and that's the critical thing.
Speaker 2:So I think, while I broadly agree with your statement, I think where you're maybe misaligning your priorities is the difference between urgent and important. Data is important, but does it need to be solved in a recession when everything's really tough, or actually should we be focusing on the more urgent requirement of state keeping the ship afloat Right? That, to me, right now, for 2024, would have to be my priority, because I'm worrying about the deals in front of me. How are we going to ensure that if we miss, it's only by a few percent, or are we even going to be able to continue growing through a recession that really separates and we can maybe handle some more important stuff that's less urgent, like data when we know maybe halfway through the year actually we're looking pretty good. Now we can invest resource priorities and time into something that is more important longer term.
Speaker 1:Yeah, it's the Eisenhower matrix, right, and everything that's usually most important is in the non urgent and important area of the Eisenhower matrix and therefore I think that's so crucial there. It's just how you look at it, like how urgent is it to have it, like, yes, you can just let it run as is, but if that means that the first two quarters you're doing the wrong thing, sort of first three quarters then eventually it was extremely urgent to have it as such and I think therefore, yeah, like revenue is always urgent, but that's for me really business as usual and the thing you're driving. But I think, the actual long term work on your specific partner set and really understanding who are my partners, what is driving them? Where do we see the most opportunities at the moment and how can we accelerate that motion? That's where you, as a VP channel I think because you are so far away from the actual field right that's where you can make most impact by steering the whole channel organization in the right direction.
Speaker 2:So I think unfortunately for our marketing lead. We're going to hit a point of agreement, because I think this is actually the crux of how you need to decide your business. In some businesses, it's going to just be urgent right we're really. If we're low on cash, it's just about maintaining revenue and making sure that we've got the right deal volume, velocity and value through the business. And in that world I was going to swear. I won't swear. I'm not worried about data right. Right now. It's just I'm at the cold face and I'm making sure that we are just going to win enough deals to keep us going. For other types of businesses, I think I agree right, which is actually if we are not worried about hitting 70% of the number or 110% of the number and we actually want to go through a change motion which is going to make the next three to five years wildly successful, then I think focusing on data is going to provide a huge amount of value for how we move forward.
Speaker 1:Yeah, and I think also the other way around. Indeed, I'm also very aware of how important is to focus on the quarterly targets and the yearly targets and make sure we drive the whole team there. Maybe it's nice we dive a little bit deeper in. How do you combine the two worlds? Because I think VP channels like everyone we're speaking to. They get pulled into every direction. The whole business needs them. How do you prioritize and where? How do you actually like design your ultimate day?
Speaker 2:Red and conquer, right. So for me, I really see the VP channel is two jobs. There's a real revenue motion that's drive the troops right, make sure that we're running as fast, we're being aggressive in deal cycles, proper American revenue leader right. That sort of behavior where we're really pushing the line forward and making sure that we win absolutely everything. Then I probably have a channel ops, a channel programs, a program lead, and that's where I'm getting them to take a more longer term view on how we can be successful, right.
Speaker 2:So, while I'm not saying pick two resolutions, because we've promised that we're not going to do that, if I am a VP of channel, I always want to be having both a short and long term view on how I move forward, and the honest answer is no one of those is more important because, frankly, if you miss by 80%, you're out of the job.
Speaker 2:So you obviously need to make sure that you're hitting in the short term, but also you need to be making sure that that is a scalable procedure where I'm making decisions today that are going to make me successful in five quarters, 10 quarters time, and that balance is always critical, and I find that the best way to do that is to split the priorities down into different people, because, also, people have different mindsets, right, there are some people who are very short term focus they're really great to drive the troops. There are some people who think totally in strategy they're great to drive a three to five year plan. That's who you want, focused on those pieces and, as a VP of channel, I probably have those people in my team and I can delegate away so that they can spend their life focusing on that.
Speaker 1:Yeah, I think indeed your direct reports are so crucial to do this at scale, because definitely you need the right director of channels in the different regions EMEA, us, etc. On who you can rely to actually drive the day to day performance of the camps and the focus and the strategy within their specific region. And then, indeed, there's the whole programs operation side, marketing side of your channel, where you really want to have them look at the long term. How are we going to drive the program forward? How are we going to make sure that things remain scalable? Or your point earlier in this conversation around admin for the channel account managers how are we going to reduce that as much as possible so that they can actually work on those deals etc. And I think that's really two of the key areas that you need, because even within your program managers etc. They really need your input.
Speaker 1:As the VP of channel, you know most about the channel, you know most about the market, etc. It's crucial that you prioritize your time for them and make sure that you build the program as good as possible with the input from your other direct reports, your directors of channels etc. To work towards the right direction. And then the third part of your job is continuously evangelizing the channel into the board, into the executives, all around the company, making sure that the whole company is aligned with what the partners want, that the product is steered in the right direction, etc. Like those are really, I think, the three things you should be focused on as a VP of channel.
Speaker 2:Yeah, and then it's just the balance between urgency and important right For me. You're always want to be ensuring that you're going to be hitting the number and you've got to be pouring resource and focus into that, but you never want to be doing that. That's going to sell your long term success down the river right, and that's where we see we've spoken a lot about the. The likes of a Microsoft and Cisco have been able to be successful for such long periods of time. Guess what they do both very, very well. They ensure they hit this this quarter and they ensure they put in motions and plans in place that they're going to hit in five to ten quarters time. That balance is what a VP should be spending their life obsessing around ensuring that they can actually deliver now and in the future. And what I like about the way we've landed with our resolutions is it's sort of business dependent around what you should pick, but ultimately you've got to be betting on your short term and long term.
Speaker 1:Yeah, and I think, as a VP channel being a very great, great time management is crucial, because it's one of the jobs where you're traveling the most, where you're going to events, where you need to visit partners, where you need to like, you need to do a lot of things that are like reactive, where you constantly get pulled into the right direction. So you really need to prioritize and that's something that you're also very passionate about your proactive and your strategic activities there, because those are the things that keep driving you forward long term. Well, a lot of the reactive and proactive stuff is actually the things that you make sure to do for the quarterly targets, for building the relationships, etc.
Speaker 2:Well, those have been our and hopefully we've found some sort of agreement and disagreement. So the listeners have enjoyed. I'd love to hear from some VP of channels around what their New Year's resolutions should be.
Speaker 1:So either drop a comment or hit me and Rick up and we'll blast it out and maybe even have you on the podcast sometime 100%, because that's one of the things we really kickstarted a couple of months ago, where we are getting guests on the podcast, because we find that we've learned so much as well from people who are actually running the channel at the moment and really thinking about the strategies, running the team optimally, etc. So definitely a very warm and open invitation for that. Happy New Year to everyone and see you next week.