The Microsoft Partner Network

The amount of discussion around the new MPN is increasing, and the information available to help explain it seems to have settled out, so I am going to take a little time to address the coming changes. There are a series of common questions and whines that seem to be consistent, so I'll share my take on what is to come from what I believe to be true.

The first question regards when the new MPN takes effect. October is the launch of the program broadly, although some aspects have been slowly intergrated into the current program over the last months. But October is the official date, so that is when things kick into gear. I have had lots of questions and confusion around why we continue to get the report cards monthly with points listed on them. These are informational and are important for companies whose renewals are happening prior to October. The information is valid under the current program, but will go away once we reach the October launch. No more points. Note: your renewal date will actually be the transition date from the old program to the new. Everyone does not make the switch on October 1, but as your renewal date comes you will be moved to MPN.

A very common discussion is around the gold level. The new gold in MPN is not equivalent to the current gold in the program today. My perspective is this, and my disclaimer is that this is my opinion only so take it for what it is worth. I think the current gold level becomes roughly equivalent to the silver certified level in the new program. Gold in the new MPN (formerly called advanced competencies) is a level that is not available today. But it is very much like becoming gold in the current program was some years back. It is designed to be a differentiator, and it is designed to be difficult, and it is designed to keep most partners from being at the new gold level. It is supposed to be hard to achieve. Just because you are gold today you SHOULD NOT expect to be gold at your next renewal. They are not equivalent levels. So many partners are voicing displeasure (whining in my vernacular) about the fact that they can't or at least are not planning to make the investment required to remain gold under the new program.

Here is the reality. If being gold in the new MPN is important to you - it really is not unattainable. It takes 4 engineers and some sales to achieve it. That allows you to be at the highest certification level that Microsoft offers a partner. I don't think that is too much to expect. Some will say "easy for you to say since you have so many employees". The hard truth and reality is that a company with less than 4 people cannot expect to be equal to a company with 75, nor can we at 75 expect to be equal to companies with hundreds or thousands of engineers. All IT companies are not equal. Microsoft has taken a good shot at making differentiation possible. I would never say that we have the same level of expertise that our larger competitors have. We are not as deep, don't have as many resources, etc etc. I know it is a hard pill to swallow but we at HTS will move from a half dozen competencies to one or two in this program. It is a reality that change is coming. And that is the design.

Change happens. It always has, and it always will. The speed of change continues to increase so that means we have a few choices to make:

• Resist it, fight it, refuse to participate
• Grumble about it, drag our feet, grudgingly move toward it
• Embrace it, support it, lead others through it

Which of those describes your approach to change? The train has left the station so I encourage you to embrace it and figure out where you will fit into the new MPN. There are some resources available to you:

You can create a customized transition plan to the Microsoft Partner Network by calling the Microsoft Partner Network Experts at 1-877-254-6825. You can work with an MPN Expert to develop a customized transition plan to help you understand your current partner status and identify what actions your organization will need to take to meet your membership goals under the Microsoft Partner Network:

• Your organization’s status toward achieving new silver or gold competencies based on the competencies you have currently achieved
  – Microsoft Certified Professionals (MCPs)
  – Exam requirements for those MCPs
  – Training and Assessments
• Licensing Assessment
• Sales & Marketing Assessment
• References
  
  If you prefer to work on it yourself, the new transition tool is now available. You can find it here. Eric Ligman wrote a great blog post to lead you through using it that can be found here. Lots of resources to begin the process. But the message is to get started now. It will require some tests to be passed and some planning to be done in most cases. Don't sit back and wait. Find out where you are today, and then you will know what your options are and what needs to be done to move to the place in MPN you desire to be.
  
  There is another piece of great news from Microsoft that you should be aware of. This week the US SBSC team has made $500 available to their partners. Microsoft Small Business Specialists (SBSCs) have access to rebate funds reserved exclusively for them! SBSCs are eligible to receive up to $500 back on marketing investments.

Funds are available for you to drive demand generation efforts through Ready-to-Go Marketing (includes Events, Campaigns, and various Marketing Services). We want to help you to grow your business.

Don't wait: These funds exclusive to SBSCs are valid until December 31, 2010 or until supplies last. More information is available here. To get your reimbursement, submit your invoice at www.mspartnerdirect.com/rebate. Your special promotional code is: 'SBSC500H1'.

Get started today. Spend the marketing money. Use the online tool. Call the toll free help line. Just start the process and work toward your goal. Planning makes this happen. Remember that vision without execution is hallucination. And if you don't think it is worth the effort - that is your choice - just remember who made it. Don't complain about Microsoft if you choose not to participate in the new MPN. That is something you will decide, not them!

Management or Leadership

This week there was a great post in Harvard Business Review by Robert Sutton entitled “True Leaders Are Also Managers”. This is an age old discussion – what the role is of a CEO vs. President or manager vs. leader. The article includes these comments:

“In my reviews of the writings and research, I kept bumping into an old and popular distinction that has always bugged me: leading versus managing. The brilliant and charming Warren Bennis has likely done more to popularize this distinction than anyone else. He wrote in "Learning to Lead: A Workbook on Becoming a Leader" that "There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial." And in one of his most famous lines, he added, "Managers are people who do things right and leaders are people who do the right thing."”

Sutton continues with these words: “Although this distinction is more or less correct, and is useful to a degree, it has unintended negative effects on how some leaders view and do their work. Some leaders now see their job as just coming up with big and vague ideas, and they treat implementing them, or even engaging in conversation and planning about the details of them, as mere "management" work.

Worse still, this distinction seems to be used as a reason for leaders to avoid the hard work of learning about the people that they lead, the technologies their companies use, and the customers they serve. "Big picture only" leaders often make decisions without considering the constraints that affect the cost and time required to implement them, and even when evidence begins mounting that it is impossible or unwise to implement their grand ideas, they often choose to push forward anyway.”

He is right on the money. There has to be balance between the two. Robert Sutton goes on to close with these words: “I am not rejecting the distinction between leadership and management, but I am saying that the best leaders do something that might properly be called a mix of leadership and management. At a minimum, they lead in a way that constantly takes into account the importance of management. Meanwhile, the worst use the distinction between leadership and management as an excuse to avoid the details they really have to master to see the big picture and select the right strategies. Therefore, harking back to the Bennis theorem I quoted above, let me propose a corollary: To do the right thing, a leader needs to understand what it takes to do things right, and to make sure they actually get done. When we glorify leadership too much, and management too little, there is great risk of failing to act on this obvious but powerful message”.

So when we boil down the whole leadership versus management debate – there are a few things that need to be considered:
1. Every company needs someone focused on doing both. There must be someone serving the role of CEO (big picture thinker) and someone filling the role of President/GM (get it executed)
2. These are not mutually exclusive nor do they have to be at odds with each other
3. It is difficult for one person to effectively do both roles consistently
4. Much of the success that can happen when done right centers around effective communication between the roles and with the entire team
5. Execution is still the only thing that truly matters – big pictures that are not executed are just hallucination!

So the guidance is clear. Make sure your company is practicing both roles. Balance them through continual open communication. Lead by assuring execution so you don’t spend your time spinning your wheels and hallucinating about what could be and should be. Determine the course and just get er done!

The Word From CompTIA

This week is all about the IT industry. I am at the annual CompTIA breakaway event and gathered with industry leaders from every facet of the IT world. It has already been a great event and we are only getting started. The focus of a number of the sessions has revolved around change - particularly that of the cloud and the pending changes that will be coming as that reality comes to fruition.

That said - I think more and more people are beginning to take a more balanced view of things. The sky is falling approach to dealing with it is over the top. Life is continuing in spite of the cloud. VAR's and Solution Providers continue to stay in business and serve customers. The reality is that if we take care of the customer - deliver strong customer service focused on their best interest meeting their business goals - we have a place in any new economy. It will come down to the relationship, and nothing cements it like good customer service. That does not mean we should stick out heads in the sand and pretend it is business like usual. We need to begin our due diligence into how the cloud will fit our business model and our customer's needs, and then learn all we can about selling, implementing, supporting, training and marketing it.

There was a great session that addressed some of this here at CompTIA breakaway. Here are some snippets I jotted down that I think are good to consider:

1. The channel lost 40K partners in 2009 with estimates that there are currently 210K left in the US

2. Execution will always be the differentiator

3. There are three key areas that will be hot in 2011 so cloud is only part of the real opportunity:
- Mobile
- Social networking
- Cloud

4. Many SMB customers are still waiting for cash before they spend money

5. As SMB customers shift from capex to opex it creates challenges and drives the need for cash for resellers

6. Creative financing will become critical

7. Reliance on VAR's goes up with the cloud - things get more complex, not less

8. Complexity during transition from on premise to a hybrid cloud goes up

9. Cloud means hybrid in most cases

10. Referral fees will change valuation methods when companies are sold

11. Today over 40% of partners not involved in the cloud

12. The percentage of end users currently using the cloud is almost identical

13. Becoming a sales organization becomes more critical as we sell cloud resources

14. Evolution of the roles in the channel and in a reseller company will occur

15. The could will require evolution of business models

16. Last year the best in class company metrics are 3x better when compared to average VAR

17. Business process becomes far more important in the cloud

18. Consolidation will increase in the channel as companies fail to make business model changes

19. It is critical to talk to clients about the cloud so someone else doesn't come in and do it

20. The vendors we work with will change. Apps will be sold by those closest to the client. UPS / banks / CPAs / lawyers etc. will become the new vendors

21. The last mile will be a tug of war. 38% of vendors see no need for disty and many struggle with the need for solution providers either

22. How a vendor views customer ownership must be a key factor in selecting a vendor

23. The only way to maintain margin will be to own the entire relationship from a management of the customer environment perspective

24. We really need to become cloud ambassadors

25. Training and adoption become much more important to maintain customer satisfaction and retention

26. There is a new group of partners coming on that don't have any prior baggage and will just fully embrace the cloud

This is a long list of thoughts that I gathered from different sessions here at CompTIA breakaway. My advice is to think about them strategically, plot a course, stay the course, and provide extreme customer service. In the end, he who owns the heart of the customer will win!