Global Channel Benchmarking: What MNCs Need to Know

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If you could hire only one more person for your organization this year, where would you make that hire?

For many executives battling through economic headwinds in emerging markets, the answer tends to be wherever they think someone will provide the strongest boost to top-line growth, which usually means hiring an additional sales or marketing manager to support the commercial front lines.

However, in FSG’s latest channel benchmarking survey of over 160 global executives, we found that companies who hired a dedicated channel manager to manage their third-party distribution relationships within the last five years reported a 11.1% average increase in top-line revenue growth as a result of that hire.

The most-successful MNCs will be the ones who not only carve out dedicated roles for their channel managers, but also take the time to think carefully about the necessary skills and experience of those individuals. According to our findings, there are two channel manager behaviors that drive substantial improvement in commercial outcomes for MNCs:

  1. The consistent use of focused, capability-based distributor management scorecards to measure the performance of distribution partners, as opposed to relying solely on commercial KPIs
  2. The use of a status-based incentive program for distributors, with different tiers of benefits and consequences based on clearly published criteria

To help get ahead of the trend and seize this critical lever for boosting overall commercial performance, FSG clients have full access to all of our channel management resources via the FrontierView platform, including reports on channel management in:

Not a client? You can read our article in the Harvard Business Review or download the executive summary of the report by clicking here.

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