In our Partner Transformation Assessment Practice, I’ve spent several years consulting MPS providers around the world using benchmarks we’ve established through our research and interviews. It has been interesting to see the reactions each time I present the results from one of our assessments. While you might think you’d see a wide variety from all of the different executives we interact with, I think the most common response I hear is when executives essentially say, “Oh, that benchmark really doesn’t apply to me.”
One of the most common variations I hear is when I’m consulting with a new provider who flatly states, “That benchmark doesn’t apply to us.” Executives have a tendency toward disbelief—that they are somehow unique and different than every other provider out there. The executive has missed the point of what we are measuring.
I often chuckle, in that this reaction reminds me of the first stage we experience during grief and mourning—that of denial. Let’s face it; having someone else tell you how you could be running your business better is threatening. I get that.
A benchmark is only as useful as what it is measuring. So, executives are absolutely right to be skeptical of any and all benchmarks. After all, he/she knows his/her own business better than any outsider ever could. But the most important point of any performance metric is really the fundamental, underlying questions it should cause you, as the decision maker, to ask:
- What is this metric really measuring?
- Does it measure something that will fundamentally make my organization stronger?
- If so, how can I tune my organization to meet or exceed this performance level?
As an example, a provider asked me, “How can I improve our score?” As I looked at the company’s results, it was clear that this was a good company. So my suggestions revolved around making it a great company. I quickly focused on the amount of revenue being generated per MPS customer. One of the most common issues we see is that MPS providers don’t fully penetrate the customer account, leaving money on the table.
The very next question was, “How do we generate more revenue per MPS customer?” That is the million-dollar question, now isn’t it?
This is where we have to start looking at what you are currently offering your customers, how deeply attached you are to each of your customers, and what your organizational capabilities really are.
When you ask yourself, “Does this benchmark really apply to me?” I’d like you to pause before you react. Instead, I’d like you to ask, “What is this benchmark really driving at?” It may create a small window of opportunity for you to view your business a little differently than you did yesterday.
For more information about Photizo’s Partner Transformation practice, visit http://photizogroup.com/partnertransformation, or learn more by attending our next Transform event in Louisville, Kentucky on June 2-4th where you can meet the leaders who are setting the standard, resellers who have been through the Photizo Partner Transformation process, and the thought leaders from across the industry (http://global2014.photizogroup.com/). It’s not just education, it’s networking and deal making at its best. If you think you are the best, this is the place to be with the best!
