Perplexed by Change in Direction?

It means confused, just in case you’re wondering.

Why do companies that have been built on going direct suddenly decide to care about the reseller channel?

Why do companies that have been built on the reseller channel partnerships decide to go direct to the customer?

Mo money. The grass is always greener on the other side.

That is all there is to it. Or as my buddy Robbie would put it: It’s that simple.

Really? Really.

With every change of guard and seasons, the occupying management force will do a business assessment and identify key areas of improvement, the opportunity matrix, the differentiating factor… and the rest is basically what the Dilbert comic is based on.

These change strategies are all ultimately based on a flawed concept that while everything else stays the same and we change only this one thing, we will be able to make $X more money. People making this kind of a call probably never heard of causality. 🙂

You see, the problem is that when you change one little thing, even with the best of intentions, you end up pissing off a large contingent of the base that got you to your current stature. So it makes sense to do it when you are at the bottom and the feds just raided your office. But what happens when you are at the top and your change for an incremental % of market share results upsetting 100% of the constituency that got you to your current leader role in the market? There goes your sand castle.

Now sure you can draw parallels to Dell and Microsoft, but I do the same for my OWN company. As the reseller base erodes and folks flunk out of business there is mounting pressure for us to go direct.

Whenever there is a high demand of unquantifiable revenue opportunity I like to find out who is suddenly making this need apparent. How did the world change overnight that we could be making all this money and how did all these customers figure out to call us? Dig a little below the shiny cover sheet of the presentation and you find out that it’s Bob, the failed VAR, callling from the $25,000 job he got with his largest client and he needs us to go direct because he is tired of returning support phone calls during summer from his car during the lunch hour.

So let me get this straight. We’re going to throw our biggest partners under the bus in order to be friendly to the very customers that couldn’t even keep the ol’ Bob in business? We need to go direct for that? Answer on the first ring for that needy client base? Reeeeeeeally?

Let me think about that one… Bzzzt. No.

I wonder if Dell, Microsoft and others are looking past their presentation cover sheets or blindly salivating over the large dream numbers?