Case – 23
Koehring Company – Evaluating channel member performance
1) Evaluate Koehring’s approach to measuring channel member performance.
The aim of evaluating Koehring’s approach is to find out to what extent the objectives of the
company have been met. The original goal of the company while developing the program was
to measure the distributors’ performance. So in order to evaluate the approach we will have to
investigate, to what extent the evaluation program is able to measure the distributors’
performance. We should also take into account the extent to which the evaluation program is
able to motivate the channel partners.
In order to evaluate Koehring’s approach to measuring channel member performance, we will
find out all the advantages and disadvantages of the method.
Advantages
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The most significant advantage of this model is that it provides a common basis for
evaluating all the distributors. This is very important as not all the distributors deal in all
the different equipments. Since this method evaluates the sales of each product line
differently, it gives all the channel partners a fair evaluation.
This method is also very scientific. It evaluates the performance of distributors by
comparing their achievement (sales) with the expected achievement (sales quota).
Since this method is quantitative there is less room for error.
This method is also very well defined and clear, and therefore easy to implement.
This method is free from personal bias. Since no qualitative factors are taken into
account, there is no chance of personal bias.
It also provides an in-depth analysis of various trends in the market. Like for example, by
calculating the potential of different markets and analyzing the performance of
distributors in those markets, the company can identify markets with untapped
potential.
This method also has a wide reach since it is concerned with figures. Thus it enhances
the generalization of results and allows for a broader scope.
Since it is designed to provide summary of sales figures, this method also allows greater
objectivity and accuracy of results.
This method of evaluation makes it possible to compare the performances of different
distributors quantitatively.
The results of this evaluation method are easier to understand. This is very important
since strategic decisions are to be made based on these results.
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The results of this evaluation method are conclusive.
Disadvantages
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The biggest disadvantage of this method is that it does not take into account various
qualitative factors that play major role in the performance of the distributors.
The data collected in this method can be superficial, making the method of evaluation
incomplete.
This method fails to consider the presence of various market forces like the level of
competition in a market. For example a particular market might have less potential in
terms of the dollar value of contracts awarded, which might make it a less attractive
market to enter. Due to this, the market will have higher untapped potential than the
estimated potential on the basis of dollar value of contracts.
Another disadvantage of this method is that it could cost more than any qualitative
method of evaluation.
The method does not provide any insight into the perspective of the distributors. They
do not provide a detailed narrative.
This method also does not analyze the reason behind higher or lower performance by a
distributor. It only measures the performance any fails to find out the reason behind.
It does not recommend a course of action.
So, even though Koehring’s approach to measuring channel member performance is not
complete, it provides the company an opportunity to quantitatively analyze the distributors’
performance, using a common platform. While this method provides greater objectivity and
accuracy, it does not take into account the qualitative factors that cannot be measured using
sales figure.
Sources
1)
http://www.efc.be/programmes_services/resources/Documents/Research_Evaluation_Guideli
nes_3_How_to_Evaluate.pdf
2) http://www.socialresearchmethods.net/kb/intreval.php