Each category is broken down into a series of drivers, which should be limited to a select few, to make the process manageable.
What does this leave us with? For any important driver, say end-user insight, the system allows the supplier to state what degree of end-user insight the account has and also its willingness to share that information with the supplier. A supplier is ultimately looking for an account that performs well in all the categories, as there appears to be a strong correlation between these and above-average performance. Olson at HP says the real power comes from combining the value drivers with financials to form a two-dimensional matrix. "This combination shows where the real strengths and weaknesses lie." She says that: “HP sales teams have been surprised by what such matrices uncover."
So how do you implement such a system? Firstly, how do you decide on what drivers to measure? Olson says that it is vital that this should be done with channel partners. "You have to ensure that these drivers are not subjective. They have to be really important to both the supplier and the partner."
But ultimately she adds: "Our selection of drivers evolves from many sources: channel research, understanding of business models, and partner feedback, but mostly from the ability to collect quantitative data."
Secondly, objectivity is all-important. Sherazee says: "Everything has to be measurable. The scoring itself should, where possible, be based on quantitative data; however, where there is an element of subjectivity, scoring criteria are used to ensure consistency across accounts." |