In my previous post entitled: "The Enabling Technologies of Performance Improvement" I presented the technology behind channel optimization.  Although I touched on methodology in that posting I would like to take a moment in this post to focus on that methodology.  Why? Because great technology must be mated to a great methodology in order to be powerful.

Fortunately, you don't need to experiment or engage in an expensive analysis to find the right methodology.  In fact, that methodology has been designed, tested and proven over the last several years by some of the most respected performance improvement companies in the world.  That methodology is based upon the Four Pillars of Performance Improvement and is featured in the image below (note: please click on the image to enlarge).

Let's take a look at the Four Pillars in action.  For this example let's assume you sell and service heavy equipment through dealers.  You've been experiencing high warranty costs and you have reason to believe that your service techs are not prepping the new products properly before releasing them to new customers.  Recognizing this problem you set out to resolve it by COMMUNICATING to your service teams worldwide that you have a new "Best Practice" for prepping new equipment and you expect all service techs worldwide to follow that practice.  Then you provide a training and support package that EDUCATES your service techs on the new practice and how to successfully prep the new equipment.  Then you MOTIVATE the service techs to follow the new procedures either through a carrot or a stick...or both.  [Note: this motivation often takes the form of a certification program or a recognition program.]  Finally, you MEASURE the results and hold individuals accountable for following the new procedures.  As a result, your warranty costs drop back down to acceptable levels.

To attempt to optimize channel performance through any other methodology, or worse yet without a methodology, is to put your program at great risk.