So what are the benefits of using this method?

Firstly, forward planning becomes much easier when you have an objective measure of the value that the various partners create.  Olson loves the way that it is made possible to compare contributions from different partners.  "Before, people used to come to me and give me four or five figures from a particular account.  They’d say: ‘Look at these figures, aren’t they great?’ And I’d say: ‘What is a great number?’ Now we have something to benchmark against." 

Secondly, this process makes it easier to spot the areas where investments are worthwhile.  For instance, the partner may have potentials that you simply didn’t realise existed.  Alternatively, says Olson: "An account may be destroying value in a number of ways.  By using value drivers we were able to identify these accounts and work out ways of turning things round."  For HP she says: "It allows us to make tough choices about where to deploy resources, and to explain those choices to our partners."

She reckons it also removes a huge area of subjectivity.  "An objective questionnaire  helps to remove emotion."

"It allows us to make tough choices about where to deploy resources.”

Thirdly, Olson says it automatically deepens the relationship.  "It forces you to have a deep discussion about your goals and your partners’ goals, and to see the areas where you diverge."

Sherazee says: "This approach allows you to go beyond the humdrum, day-to-day, low-level conversations which so often characterise the relationship between suppliers and even quite large partners."

This method also empowers the account manager.  An alternative approach is to carry out sporadic market research on how you are viewed by channel players.  Instead, by using value drivers, the information is garnered by the account manager, the person charged with overall responsibility for the account.  He or she owns it, and so is more likely to appreciate its real worth.

So what is Olson’s verdict?  "I would say this approach is still in test mode, but that the benefits are proven."  She says HP had three goals: firstly to allocate sales and marketing resources better; secondly to select channel accounts with which HP can really pursue deep strategies, and, thirdly, to guide account teams on how to increase the value of accounts to HP.  Olson reckons that value drivers will help HP to meet these goals.