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Why Learning Management Systems Fail in the Distribution Channel

 

Learning management systems are often applied in the channel to manage a channel development  strategy. This can be a mistake, and I will explain why.  

How Improving Performance Differs from Delivering Training

First, let’s get on the same page as to what most of us are trying to achieve in the channel: We’re trying to increase sales, improve service, drive down costs and improve customer satisfaction.To succeed at this, we need to optimize the performance of the sales, service and management teams in our channel. This is a key point: our goal is to optimize performance.  Our goal isn’t to just provide training.  Although training is a component of our drive to optimize performance, it is but a single component in a performance optimization strategy. A true performance solution is pieced together though the Four Cornerstones of Performance Improvement: Communication/Education/Motivation/Measurement and I have added a fifth component that’s extremely important to your channel—Alignment! The point is this: if you want to optimize performance you need to deliver a true performance based solution that incorporates all pieces of the performance improvement puzzle.

 

performance puzzle

 

How Developing a Channel Differs from Developing Employees

Clearly the most significant difference is that your target audience in the channel is independent (indirect). Most of them do not work for you. Instead they work for an independent business such as a dealer, distributor or a franchise. In most cases, they are widely distributed regionally, nationally and often globally. Consequently, the sales and service people within your channel rarely are in contact with the mother ship! They exist like distant planets in your business solar system. If you wish to reach, manage and develop these audiences you will need to focus on a single touch point and be certain to make your systems easy-to-use. Remember, these are independent businesses and they can ignore your training and development should they chose to do so.

Employees, on the other hand, are “reached” every day by their direct managers. They are constantly communicated to through multiple means, including meetings, phone calls, interpersonal contact in hallways, company publications, performance reviews, and much more.  And...they are usually mandated to take your training. This means that a single touch point and ease-of-use are not nearly as critical as in the channel. No employee ever said “I quit!” because they didn’t like your learning management system. The same cannot be said of the channel.

This is the bottom line: Whether you are developing employees or the channel you are probably delivering the performance methodology showcased in the puzzle image on the preceding page. The difference is that with employees you are delivering this through multiple means and ease-of use is not a critical driving factor. While in contrast, to effectively reach, manage and develop your channel you really need to do this through an integrated, ease-to-use solution. You simply do not have the “touch points” with your channel that will allow you to deliver a performance-based methodology through multiple mechanisms.

 

Learning Management Systems are Designed to Deliver Training

Learning Management Systems were designed based upon the ideology of the 1990’s and are primarily built to deliver formal training for employee populations. They’re good at doing this, but not at much else. As we learned in the previous sections this is less than ideal for channel development where a single touch point is all you can count on to reach, manage and develop your channel.

 

Contextual Performance Improvement—the Solution for the Channel

As we learned in the previous sections, the channel is not inclined to invest a lot of effort into accessing your training and development systems.If it’s not simple to access everything they need, when they need it, and from a single point of access, you will quickly loose them.  You basically have one shot at reaching them and that shot better deliver against all four cornerstones. To deliver less will result in an under performing channel.

Forrester Research, in a recent presentation (please see illustration at left), laid out what they refer to as the four phases of learning. In this interesting document they focus on what they refer to as the emerging “4th Generation” which is a contextual learning phase. This means that we must provide training and development solutions within the “context” of a person’s everyday business activities.

At LogicBay we believe that this takes on even greater importance in the channel, due to the unique behaviors sited earlier. This means that all facets of the four cornerstones, along with Alignment, must be delivered through a single touch point that’s easy-to-use and provides both formal and informal methods of learning—all of which must be available within “one click” of the users’ business activities.

 

Summary

While learning management systems are excellent for delivering formal training to an employee audience, they are ineffective at meeting the unique requirements of the distribution channel. To meet these requirements a solution must integrate all facets of a performance methodology into a single system available through a single touch point. It must be easy-to-use. It must deliver both formal and informal training. And it must function in a contextual manner delivering all training and knowledge within a single click of a person’s everyday work activities.

Partner relationship management, prm, channel partner marketing, channel communications, partner management, partner portal, channel management software

About LogicBay
LogicBay’s Partner Relationship Management (PRM) Technology is rich with best practice workflows making it easier for organizations to do business with channel partner re-sellers. The result: More engagement and Mindshare. Greater Efficiency and Cost Savings. Alignment with Channel Partners. And, Performance Improvement for the Entire Sales Enterprise.
Premium White Paper Download this premium white paper to learn Partner Relationship Management Best Practices – make it easy for dealers to do business with you, heighten dealer engagement, gain mindshare and maximize financial returns. Learn about LogicBay’s Best Practice Framework including methods for more effectively training and monitoring dealer employee certifications.
Premium White Paper Link to LogicBay’s Library of Partner Relationship Management White Papers. These white papers provide best practice ideas on a Channel Readiness and Performance Improvement strategies. Topics include subjects such as: Effectively launching a LMS for the Channel, Applying Lean Principles to Channel Management, Channel Life-cycle Management, Partner Portal Technology Unification, and much more.
Premium White Paper Link to LogicBay’s Library of Client Case Studies. Learn how LogicBay’s PRM Solutions and Technology have created significant performance gains for clients such as Caterpillar, HP, Daimler Trucks and Outdoor Living Brands.

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