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SURVIVING
THE HORSE LATITUDES
   9 Ways of Doing More with Less
The term horse latitudes originates
  from the days when Spanish sailing
   vessels transported horses to the
     West Indies. Ships would often
become becalmed in mid-ocean in this
 latitude, thus severely prolonging the
 voyage; the resulting water shortages
would make it necessary for crews to
     throw their horses overboard.
                                 Wikipedia
The term horse latitudes originates
  from the days when Spanish sailing
   vessels transported horses to the
     West Indies. Ships would often
become becalmed in mid-ocean in this
 latitude, thus severely prolonging the
 voyage; the resulting water shortages
would make it necessary for crews to
     throw their horses overboard.
                                 Wikipedia
Horse Latitudes is the
 right time to reprioritize
and make your sailing ship
 more efficient than ever
Out of scope:
Head count reduction
Travel freeze
Budgets cuts
Reorganization
Cost savings...
Get         Raise   Out of scope:
Lighter        Sail
                      Head count reduction
                      Travel freeze
                      Budgets cuts
     Streamline       Reorganization
        Ship          Cost savings...
Get         Raise   Moving responsibility
Lighter        Sail   to the channel
                      Mutualize your efforts
                      In-source strategy &
     Streamline       outsource execution
        Ship
Moving Responsibility
  to the Channel

             High




                    High
                           Alignment
 Low




       Low

       Efficiency
Moving Responsibility
  to the Channel

              High




                     High
                            Alignment
 Low




Waste   Low

        Efficiency
Moving Responsibility
  to the Channel
 Wild
Horse
              High




                     High
                            Alignment
 Low




Waste   Low

        Efficiency
Moving Responsibility
  to the Channel
 Wild
Horse
              High




                      High
                             Alignment
 Low




Waste   Low          Dumm
                       y
        Efficiency
Moving Responsibility
  to the Channel
 Wild
Horse                Hero
              High




                      High
                             Alignment
 Low




Waste   Low          Dumm
                       y
        Efficiency
B2B Software Company
 Capability   Mkt & Biz           Mostly MDF funded
Development   Workshops           Mkt programs channel
                                  managed
Market Data   Customer &          ROI x2
 Exchange     Market Data         Increased loyalty
                                  Free up internal
 Process &    MDF guidelines      resources
 Guidelines   Biz Plans

              2x year
 Teamwork     Alignment meeting
Changing the Mindset
 From                   To

 Vendor      Vendor               Channel



 Channel
                      Customers


Customers
Do you?
Have regular strategy sharing meetings ?
Share your market/customer data?
Support the capability of your resellers?
Provide business optimization tools?
Mutualize your Efforts
         Creation of an Ecosystem
         Software partners
         Hosting partners
         Security partners
         Technology partners

         «Coopetitors»
         organized by industry
Where is the Boundary?
Interdependence    Independence
Market knowledge   Standalone sales &
Best practices     marketing
Training           Unique strategy
Co-go to market    Confidentiality
Do you?
Know who is part of your ecosystem?
Share common needs (research, data,
databases, training, practices, application
developments,...)?
Have co go-to-market programs?
In-source Strategy
            Outsource Execution
150.0
                                       Channel Management
                                       for a US startup
112.5

  75.0

   37.5

        0


            Internal
                               Outsourced
Strategy               Sales   Setup        Admin
Only




           5%

of Sales & Marketing programs
      are getting regularly
   reviewed & documented
Do you?
Review regularly your programs and
document the learning?
Know where to cut when revenue
shortage is coming?
Outsource tasks that can be done
better and cheaper outside?
Get         Raise   Scan untapped
Lighter        Sail   opportunities
                      Expand your customer
                      reach
     Streamline       Go after the weak
        Ship
Do NOT
 Focus
Scan Untapped Opportunities
                  Segments

Geographies
              ?       ? ?        Markets




  Installed                      Competition
    Base      ?              ?
                      ?
                  Technologies
CAD Software Vendor

        Found elevator segment
        being untapped
        Built an integrated GTM
        Lighthouse segment
Do you?
Think of any untapped opportunity?
Know your installed base?
Sell more to existing customers? or try
to find new customers? or both?
Really try to expand your footprint?
Expand your Customer Reach
Distribution for Cloud Computing


                                  IT Vendor
                                        Direct
IT Channel                                                              Business Advisors



 Contractual Channel                                    Non-Contractual Channel
   120 000 companies                                        1 800 000 companies




     See whole presentation on http://tinyurl.com/degfkg 
Ubiquitous Presence
                Analysts
Communities                   PR
Social                        Twitting
Networking
                             Groups
   Viral
   Marketing               Forums

               Channels
Word of mouth
     remains the
    most trusted
source of information
Do you?
Have a clear view of the people who
influence the purchase of your
products?
Do something with your communities
(I mean really)?
Go after the Weak
   NEC Computers stops its desktop
   PC business (€300M pa)
   Most competitors go after their left
   resellers
   How many go after their left
   customers?
The weak can make 2 things:
       1. you stronger
2. your competition stronger
      (and you weaker)
Get         Raise   Clean your data
Lighter        Sail
                      Simplify your
                      processes
                      Discipline execution
     Streamline
        Ship
Clean your Data

                            Databases loose
90.0 %
                         20% accuracy every year
67.5 %


 45.0 %

  22.5 %

     0 %                                 2005
                                  2004
                           2003
                  2002
           2001
Do you?
Update your external databases every
year?
Clean your internal databases every
year?
Monitor your databases reliability?
Simplify your Processes

        40 pages Biz Plan to be filled
        in by each certified reseller
        3 Months effort
        No review
Of course you know
         the ROI
of the programs managed
by your channel partners...
Do you?
Make sure all your processes make a
business difference?
Check that their execution is not
overwhelming your teams?
Have the right processes to measure
what’s truly important?
Discipline Execution
              Next 3y                 Next 3y                  Next 3y                Next 3y
Planning




             Next 4Qs                Next 4Qs                 Next 4Qs              Next 4Qs


              Q2 plan                 Q3 plan                 Q4 plan                Q1 plan
Review




            Q4 review               Q1 review               Q2 review              Q3 review

                 Q1                      Q2                      Q3                      Q4
           15 days after Q4 ends   15 days after Q4 ends   15 days after Q4 ends   15 days after Q4 ends




                                      Perpetual Planning
90% of people
    poor performance
       stems from
ill-defined expectations
Do you?
Make sure that your team and top
partners are fully inline with your vision
and roadmap?
Do you have a process/milestones to
check that when deviation happens it is
immediately corrected?
Moving responsibility to the
Channel
Mutualize your efforts
Outsource execution/ Insource
Strategy
Scan untapped opportunities
Expand your customer reach
Go after the weak
Clean your data
Simplify your processes
Discipline execution
lemon
                                        LEMON OPERATIONS




Laurent.Glaenzer@Lemon-Operations.com
lemon
                                        LEMON OPERATIONS




Laurent.Glaenzer@Lemon-Operations.com

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Horse Latitudes

  • 1. SURVIVING THE HORSE LATITUDES 9 Ways of Doing More with Less
  • 2. The term horse latitudes originates from the days when Spanish sailing vessels transported horses to the West Indies. Ships would often become becalmed in mid-ocean in this latitude, thus severely prolonging the voyage; the resulting water shortages would make it necessary for crews to throw their horses overboard. Wikipedia
  • 3. The term horse latitudes originates from the days when Spanish sailing vessels transported horses to the West Indies. Ships would often become becalmed in mid-ocean in this latitude, thus severely prolonging the voyage; the resulting water shortages would make it necessary for crews to throw their horses overboard. Wikipedia
  • 4. Horse Latitudes is the right time to reprioritize and make your sailing ship more efficient than ever
  • 5. Out of scope: Head count reduction Travel freeze Budgets cuts Reorganization Cost savings...
  • 6. Get Raise Out of scope: Lighter Sail Head count reduction Travel freeze Budgets cuts Streamline Reorganization Ship Cost savings...
  • 7. Get Raise Moving responsibility Lighter Sail to the channel Mutualize your efforts In-source strategy & Streamline outsource execution Ship
  • 8. Moving Responsibility to the Channel High High Alignment Low Low Efficiency
  • 9. Moving Responsibility to the Channel High High Alignment Low Waste Low Efficiency
  • 10. Moving Responsibility to the Channel Wild Horse High High Alignment Low Waste Low Efficiency
  • 11. Moving Responsibility to the Channel Wild Horse High High Alignment Low Waste Low Dumm y Efficiency
  • 12. Moving Responsibility to the Channel Wild Horse Hero High High Alignment Low Waste Low Dumm y Efficiency
  • 13. B2B Software Company Capability Mkt & Biz Mostly MDF funded Development Workshops Mkt programs channel managed Market Data Customer & ROI x2 Exchange Market Data Increased loyalty Free up internal Process & MDF guidelines resources Guidelines Biz Plans 2x year Teamwork Alignment meeting
  • 14. Changing the Mindset From To Vendor Vendor Channel Channel Customers Customers
  • 15. Do you? Have regular strategy sharing meetings ? Share your market/customer data? Support the capability of your resellers? Provide business optimization tools?
  • 16. Mutualize your Efforts Creation of an Ecosystem Software partners Hosting partners Security partners Technology partners «Coopetitors» organized by industry
  • 17. Where is the Boundary? Interdependence Independence Market knowledge Standalone sales & Best practices marketing Training Unique strategy Co-go to market Confidentiality
  • 18. Do you? Know who is part of your ecosystem? Share common needs (research, data, databases, training, practices, application developments,...)? Have co go-to-market programs?
  • 19. In-source Strategy Outsource Execution 150.0 Channel Management for a US startup 112.5 75.0 37.5 0 Internal Outsourced Strategy Sales Setup Admin
  • 20. Only 5% of Sales & Marketing programs are getting regularly reviewed & documented
  • 21. Do you? Review regularly your programs and document the learning? Know where to cut when revenue shortage is coming? Outsource tasks that can be done better and cheaper outside?
  • 22. Get Raise Scan untapped Lighter Sail opportunities Expand your customer reach Streamline Go after the weak Ship
  • 24. Scan Untapped Opportunities Segments Geographies ? ? ? Markets Installed Competition Base ? ? ? Technologies
  • 25. CAD Software Vendor Found elevator segment being untapped Built an integrated GTM Lighthouse segment
  • 26. Do you? Think of any untapped opportunity? Know your installed base? Sell more to existing customers? or try to find new customers? or both? Really try to expand your footprint?
  • 27. Expand your Customer Reach Distribution for Cloud Computing IT Vendor Direct IT Channel Business Advisors Contractual Channel Non-Contractual Channel 120 000 companies 1 800 000 companies See whole presentation on http://tinyurl.com/degfkg 
  • 28. Ubiquitous Presence Analysts Communities PR Social Twitting Networking Groups Viral Marketing Forums Channels
  • 29. Word of mouth remains the most trusted source of information
  • 30. Do you? Have a clear view of the people who influence the purchase of your products? Do something with your communities (I mean really)?
  • 31. Go after the Weak NEC Computers stops its desktop PC business (€300M pa) Most competitors go after their left resellers How many go after their left customers?
  • 32. The weak can make 2 things: 1. you stronger 2. your competition stronger (and you weaker)
  • 33. Get Raise Clean your data Lighter Sail Simplify your processes Discipline execution Streamline Ship
  • 34. Clean your Data Databases loose 90.0 % 20% accuracy every year 67.5 % 45.0 % 22.5 % 0 % 2005 2004 2003 2002 2001
  • 35. Do you? Update your external databases every year? Clean your internal databases every year? Monitor your databases reliability?
  • 36. Simplify your Processes 40 pages Biz Plan to be filled in by each certified reseller 3 Months effort No review
  • 37. Of course you know the ROI of the programs managed by your channel partners...
  • 38. Do you? Make sure all your processes make a business difference? Check that their execution is not overwhelming your teams? Have the right processes to measure what’s truly important?
  • 39. Discipline Execution Next 3y Next 3y Next 3y Next 3y Planning Next 4Qs Next 4Qs Next 4Qs Next 4Qs Q2 plan Q3 plan Q4 plan Q1 plan Review Q4 review Q1 review Q2 review Q3 review Q1 Q2 Q3 Q4 15 days after Q4 ends 15 days after Q4 ends 15 days after Q4 ends 15 days after Q4 ends Perpetual Planning
  • 40. 90% of people poor performance stems from ill-defined expectations
  • 41. Do you? Make sure that your team and top partners are fully inline with your vision and roadmap? Do you have a process/milestones to check that when deviation happens it is immediately corrected?
  • 42. Moving responsibility to the Channel Mutualize your efforts Outsource execution/ Insource Strategy Scan untapped opportunities Expand your customer reach Go after the weak Clean your data Simplify your processes Discipline execution
  • 43. lemon LEMON OPERATIONS Laurent.Glaenzer@Lemon-Operations.com
  • 44. lemon LEMON OPERATIONS Laurent.Glaenzer@Lemon-Operations.com

Editor's Notes