Employee Rewards, Remuneration and Leaders

Do you have employees approaching you for pay rises when their expenses are increasing? Happens to me all the time despite a well laid out HR policy regarding increments and appraisals. Requests for salary raise are made by employees without understanding that the remuneration paid to them is for work done and it has nothing to do with the fact that they are increasing members in their families or buying a new car.

When do companies move employees up the value chain by promoting their profiles or increasing their remuneration is actually only dependent on the performance of the period gone by and not of the promise made to be delivered in the coming period. 
Whether you have this authority or not, promotions and raises need to be part of an ongoing discussion with employees about their performance. It is crucial to  make these decisions about promotions and raises  very carefully.We should recognize that who we reward sends a signal to the rest of the organization. We need to be sure we are endorsing behavior that is in line with the organization's values. For example, an employee who exceeds his targets but treats his team members poorly should not be rewarded in an organization that values teamwork.the way an organization promotes people has implications for an individual's success. Organizations often assume that a promotion should involve giving star performers responsibility for managing more people and developing — rather than just executing — strategy. This may not be the correct measure for an organizational development process because most time a high performer may not be able to develop an operational overall view of the organization just because of his performance. Leaders have to be recognized on the basis of their temperament and their ability to learn and deliver the results rather than just their age and seniority. 

Value and Channel

   The changing face of our business has forced all of us in the channel ecosystem to take another     look at our businesses. The market conditions, technology innovations and  and the changing expectation of our end customer today drives the dynamics of the channel ecosystem rather than just product innovation.
    1.Customer: He is looking for a value based solution offering to ensure a better way to manage his heterogeneous & complex technology environment.
    2.Partner: These are the front runners in promoting technology based solutions which help resolve complex business problems
    3.Distributor: More and more, it seems that the distributor is fast becoming an extension to the vendor’s channel team and enabling faster reach to market
    4.Vendor: These are the tech generators, the solution creators, the ones whose solution is promoted by the distributor, enabled by the partner and bought by the customer
       Value is a term of an era gone by. The Channel requires More Value

       More Value ? It means a multi- pronged approach to connect the dots that define the needs of the channel ecosystem to make the entire channel more profitable for all its players.  Encourage customers to adopt new technologies, new services attached to those technologies and financial models that these innovations bring to the fore. Use the channel capabilities to provide to the end customers deeper portfolio of vendor products and its product alliances. 
      The market did. The channel ecosystem responded to align itself. Distys have always offered recruiting and marketing services, to attract VARs to a vendor and help them sell vendor offerings, but that’s not enough; now Distys get that they have to recruit, enable and ramp VARs (in partnership with vendors) to create a win/win/win. The BOTTOM line is that if a disty can’t show a VAR how a particular vendor offering will help them grow their TOP line, the VAD value prop falls apart! Vendors started to see VADs as managers or co-managers of their extended channel. Companies like Cisco are now looking to distributors to manage a part of their SP/VAR channel. What changed?  This role is in contrast to the distributors prior role as a wholesaler of the vendors’ products where the vendor still ‘owned’ the channel relationship.
    Distributors realized that they need to align their business models more closely with their tech vendors. This means that they need to help vendors enable, on-board, and create demand for channel partners through value added services vs. relying on back end sell through.
      VAR’s have struggled alone to create the value proposition for their customers with little or no support from the rest of the ecosystem. Vendors need to design the DNA of their channel programs FIRST and then look to distributors to execute against that blueprint.
       Its fine for distributors to be active partners in the creation of the DNA, but vendors still fall prey to fantasy that distys actually know what the vendors Go-To-Market and channel strategy should be and that if the vendor gives the disty its products, magically, VAR sell through will result. This fantastical thinking leads to disastrous results, because as good as a VAD is at the foundations of channel building, each vendor has a unique Go-To-Market and channel strategy that has to be clearly defined BEFORE a VAD can engage successfully with the vendor.
      VADs execute pieces and parts of this machinery, but lack the right multi-vendor engagement models and a mass customizable back end to scale their VARs’ pipelines
     The design of a channel management system that enables value-added channel to successfully sell customized solutions to end users is an important strategic decision for vendors
      VADs need to create a more compelling demand generation foundation that vendors and SP/VARs can leverage. Ultimately, VADs need to help VARs build demand around multi-vendor offerings that combine a group of non-competing vendors
       While volume-based incentive systems are popular, it is not clear that this compensation structure is appropriate for the VAR channel Vendors need to adopt a different metrics of incentivization for their value channel



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