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Symantec and Veritas, AMD and ATI, EMC and RSA, Hewlett-Packard and Mercury, Motorola and Symbol - these are just a few of the major acquisitions we've seen in the technology industry over the past few years. All are companies with channels in place and that faced the challenge of keeping those channels productive during what is typically a highly turbulent time. An acquisition creates risks and opportunities for both businesses involved in the transaction. Challenges include the marketplace's perception of the value of the merger, the ability to combine products and technologies, and the capacity to integrate cultures and keep talent. Risks come in the form of potential sales disruptions at both companies. Not only can the rank and file of both organizations become paralyzed with the uncertainty and fear of losing their jobs, but there is also a significant risk that the sales channels (VARs, solution providers, ISVs and what's IHV? IHV alliances) can become disconnected and lose momentum with both organizations. The pitfalls are well known, and there have been plenty of examples of them in the history of the channel. But they are not necessarily inevitable if companies employ certain strategies to prevent this loss of productivity in their sales channels. Those strategies are as follows: 1. Communicate like crazy The most critical way to maintain momentum during a transition period is to communicate often and early. No amount of communication is too much, despite the temptation early on in the process to limit the amount of information shared. However, you must establish a consistent message, maintaining "one voice" to all stakeholders. That means being consistent in communicating with all partners, regardless of geography, tier or type as well as internal stakeholders, press and analysts. Set up a task force charged with ensuring that all communications, formal or informal, convey the same standardized message. This effort can go a long way to halting the rumor mill that inevitably accompanies these situations, feeding uncertainty and instability inside and outside of the organization. 2. Don't ignore the opportunities There are remarkable opportunities associated with an acquisition or merger. Companies typically enter into a merge strategy to expand market coverage - horizontal, vertical or geographical. An acquisition provides additional products, services and technologies to reach both new and existing customers. Make sure partners are educated on your new, more complete solution sets and receive the proper training to cross-sell and up-sell to all new and existing customers. This can also be the perfect time to make process improvements, phase out unproductive business allies and streamline ineffective channel programs. 3. Remember that some things are not for sale Any organization focused on an acquisition for the purpose of "acquiring a channel" is in for a surprise. You can't purchase a channel, you can only recruit, engage, empower and manage it. The channel doesn't belong to an organization any more than the employees do; it consists of free agents to work with whoever provides a strong business proposition and relationship. One way to look at channel and alliance partners is to view them as commission-only sales and marketing resources, and as such, an organization must be rigorous about protecting the interest and momentum of partners during an integration. As you move through an acquisition or merger, always keep in mind that you need to woo them. They are not part of the company you're buying. Basically, assume you are recruiting the partners all over again, and that goes for the sets of partners of both companies in the transaction. How you handle the partner situation will go a long to determining the success of the transaction. If you are interested in viewing an on-demand webinar on this topic, you may do so by clicking on: http://www.amazonconsulting.com/resources/white_paper.php4?type=webinar. You can download a free brief on "Integrating Partners & Programs during an Acquisition or Merge" on http://www.amazonconsulting.com/resources/white_paper.php4?type=whitepaper. Diane Krakora is the brief's author and President and CEO of Amazon Consulting. Contact her at dkrakora@amazonconsulting.com. Amazon Consulting, LLC is a boutique marketing firm located in the Silicon Valley dedicated to helping high technology companies leverage partnership by developing channel and alliance programs. For more information, please visit www.amazonconsulting.com.
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