article | May 24, 2011
Channel Management Strategy – HP Bets Their $39B Services Business
A couple of days ago, HP announced it would move its Technology Services business under its Enterprise Servers, Storage and Networking (ESSN) division. The goal was to better align the TS business with the needs and intent of its partners. The lesson here is that sometimes your own organization is the biggest obstacle to achieving greater results from the channel.
The issue had been that TS was focused on maintenance renewals and the channel was largely ignored when it brought any other scenario to the business unit. This left the channel with a reduced set of options to present to the customer
It takes guts to make a decision that involves significant internal change with the sole purpose of getting out of the way of your partner’s efforts. The bigger challenge still lies ahead. The TS business is not going to change their behavior overnight and there are several unknowns to contend with including:
This is the decisive moment for HP. After the deck chairs have been rearranged, the real work begins. Here is what we suggest to HP and any firm undertaking this type of change.
The services portion of HP’s business contributes $39 Billion per year. This is a high stakes strategic shift that warrants the activities above. If the channel management strategy pays off, it will more than pay for the additional resources and time invested.
Do you have any great sales strategy examples for us where bold change produced incredible results or disastrous outcomes?