Tom Miller
Chief Title:
Vice President Channel Management
Company/Division:
Sage North America, Sage Business Solutions (SBS) division
Category:
Software
2009 Revenue Level:
At least $100 million but less than $1 billion
Percent of Revenue from Solution Providers:
30
Biography and Background:
Tom Miller is vice president of channel management for Sage Business Solutions in North America, part of the Sage Group plc. A global supplier of business management software and services, Sage serves more than 6.1 million small and medium-sized business customers worldwide. Miller has more than 30 years of channel management and sales and marketing experience in the midmarket business applications segment of the software industry. Miller joined Sage in June 2009 having spent his career working for Great Plains Software and Microsoft in a variety of partner-facing and sales and marketing roles. During this time, he was responsible for developing partner programs across a wide spectrum of market needs and was instrumental in developing the channel strategy for the original launch of Great Plains Dynamics.
Years With Company:
1
Years With Indirect Sales:
31
Number of Employees In Channel Organization:
1170
Chief Reports To:
Paul Johnson, EVP of Sales
How Far Is Chief Removed From CEO:
Reports to SBS President, who reports to CEO
Top 10 Products Sold Through The Channel:
ACT! by Sage Peachtree by Sage -- Quantum Sage Abra HRMS Sage Accpac ERP SageCRM Sage ERP X3 Sage MAS 90 and 200 ERP Sage MIP Fund Accounting Sage SalesLogix Sage Timberline Office
Partner Organization's Top 3 Accomplishments Over The Past Year:
1. Creation of the Sage SBS Channel Management Team a. Created at the direction of Paul Johnson, EVP of Sales of Sage North America to accelerate the ability to drive Channel Marketing, Channel Programs and Channel Distribution Optimization to serve Sage partners more effectively with activities and initiatives that focus on impacting their financial and strategic success. b. The commitment was made to invest in experienced leadership for the team and as a result, three additional positions were added at the Senior Director level. 2. Creation of The Sage Partner Advantage Competitive Series a. This very successful program was created and launched in July to provide a mechanism for Sage business partners to increase their knowledge surrounding the many competitors they face on a daily basis in the marketplace. b. The program delivers at a minimum one monthly webinar that highlights a different competitor and provides the attendees with a complete SWOT analysis along with a battle card that details how to compete effectively. In addition there is a sales component in the webinar that addresses one or two specific selling strategies. c. A very popular component added in October is an interview with a Sage business partner participant. This is a partner who has demonstrated knowledge about the competitor (in many cases has been authorized for the competitive product at some point in time) and is able to add significant first-hand knowledge about how to compete effectively against the particular competitor. d. These webcasts are delivered with the utmost respect for the competitors. Our goal is to adequately prepare the Sage partners to compete effectively in the marketplace. e. To date, eight webinars have been delivered, covering seven key competitors and the sessions have been attended by over 1,100 Sage partners. 3. Creation of The Sage Partner Advantage Field Based Sales and Consulting Skills Workshops a. There is nothing more important than providing the necessary skill development programs for Sage partners to train new resources, and refresh existing resources, on sales and consulting skills. All of this needs to be done in a manner that is effective from a time and cost standpoint. One of the critical points of feedback that was received early in the effort to reach out to partners to understand what they needed from Channel Management was a better, more cost-effective method to deliver these components. Hence, the Field Delivered One Day Workshops were created. b. This program complements the highly recognized Sage Sales and Consulting Academies. The Academies are one week courses that require a significant commitment from Sage business partners in terms of out-of-pocket costs and time away from the business. c. The Field Delivered Workshops launched in January and have been delivered to 175 partners in four cities (Irvine, Vancouver, Toronto and Atlanta) to date. Sales skills training has been provided to 153 Sage partner individuals and consulting skills training to 22. d. Additional sessions are scheduled in eight additional cities through the end of April for sales, and seven additional cities for consulting. The sessions are held at Sage campuses when possible to reduce costs. An additional 400 individuals will attend the sales sessions and another 210 individuals will complete the consulting workshop. Sage partners have overwhelmingly supported this initiative. There is no cost to attend -- only their investment in time. 4. Development of Partner Distribution Optimization Tool and Methodology a. This was developed to create a tool for all of the Sage business units to use as a consistent method to identify unrealized market opportunities from a geographic coverage and specific product point of view. b. The tool is used as the foundation for determining the ideal distribution model, market by market, and is a more thoughtful and business-like approach to determining the optimum partner coverage model. c. The utilization of the tool has been instrumental in surfacing unrealized growth opportunities for several of the Sage portfolio products. Recruiting for those opportunities has begun with our existing Sage partners who have expressed an interest in expanding their businesses along with recruiting outside the Sage partner community where there is no interest from existing Sage partners. 5. Development of New Customer Market Opportunity Tool and Methodology a. This tool was developed to assist Sage partners to identify more narrowly the business opportunities that exist market by market. b. Each market that Sage partners compete in can be markedly different in terms of the businesses that make up those markets. For example the Orlando market is completely different than the Austin market. Orlando is predominantly a travel, leisure and entertainment market whereas Austin is primarily state and local government, not-for-profit and high-tech. c. The tool identifies those differences and allows the partners to customize their go-to-market campaigns based on the unique business make-up of the markets in which they compete and conduct business.
How Has Partner Community Grown:
1. Sage is implementing a channel model for the Sage Healthcare division which delivers automated solutions for practice management for doctors' offices and multiple doctor clinics. This includes the Sage Intergy Electronic Health Record System. This is a significant national growth opportunity for Sage and its' existing and potential partners as the Sage solution is widely recognized and accepted in the market. This division historically delivered through a direct model. 2. Sage has also experienced channel growth in the not-for-profit and fundraising segments and in the small business segment with Simply Accounting by Sage and Peachtree by Sage - Quantum. 3. Sage is actively recruiting partners for underserved geographic coverage opportunities in the construction and real estate segment with the Sage Timberline family of products and in the upper Mid-Market ERP segment with the world-class Sage ERP X3 solution set. 4. Sage continues to experience business partner consolidations as the market changes and the business is transformed. Sage has developed policies that assist partners in these transactions. The experience to date has been positive from a Sage point of view. 5. The Channel Management team constantly monitors the market and analyzes the changes in the environment and the associated business models to ensure Sage is providing what is necessary for Sage partners to be successful.
Single Most Innovative Initiative In 2009:
The two innovations listed are used in conjunction with one another to maximize the value to Sage and its' partners from an innovation standpoint. 1. Creation and delivery of The Sage Partner Advantage Competitive Series a. The focus on this activity (see description above) has effectively moved our business partners to an offensive position (instead of defensive) in the marketplaces where they are proactively seeking new business, particularly where there are opportunities for new customers who are currently using competitive products. b. Sage will continue to refine and enhance this program to ensure our partners are equipped to compete effectively in the marketplace. 2. Creation and delivery of New Customer Market Opportunity Tool and Methodology a. The delivery of a more finitely targeted go-to-market campaign, customized to the partner and their unique market characteristics as a result of utilizing the New Customer Opportunity Tool, naturally complements Sage's effort with the Competitive Series to be more effective against competitors capturing new business growth.
Key Channel/Partner Investments Made Over The Past Year:
1. Increase in Tier Margin for Business Partners driving New Customer License Units a. Sage business partners who delivered new customer license units saw an increase in the partner margin they received. b. This produced excellent results and Sage will continue to invest in this program. 2. Creation of Channel Management Team with expanded Executive Leadership positions a. This is a major investment for Sage in an area where business partners have seen immediate value from partner programs and initiatives already implemented and executing. b. Sage will continue to invest in this strategic area to deliver what is necessary to assist Sage partners grow their business and achieve shared success. 3. Development of Targeted Marketing Tools and Methodologies a. This was a major investment and is currently being launched and implemented. b. The preliminary reaction from Sage business partners has been positive and the expectation is to have tangible results in calendar Q2. 4. Development of Distribution Optimization Tools and Methodologies a. This was also a major investment and was necessary to create a standard methodology that Sage could use to analyze and surface opportunities to expand into areas of potential growth. b. Partner reaction has been positive to the results to date. 5. Expansion of Partner Skill Development Programs a. The Sage Partner Advantage Competitive Series i. This was another major investment and has provided the foundation for ensuring that Sage partners are prepared to compete effectively in the marketplace -- see more detailed description above. b. The Sage Partner Advantage Field Based Skills Development i. This is a key investment to increase skills and competencies and create a leveraged model to gain more exposure with a larger audience of Sage partners. ii. It is working effectively and Sage will continue investing in this critical activity.
How Are You Attracting The Next Generation Of Solution Providers:
1. First and foremost Sage consistently monitors the market to ensure we recognize changes that are occurring so that we can enhance our existing programs and create innovative new ones, if necessary, based on the need to execute differently. This could be the result of changes in potential customer buying behavior or changes in delivery systems. Sage is constantly analyzing the strategic, financial and technology events that occur that impact the reseller market. Sage adjusts to the components of the business opportunity in order to attract the next generation of solution providers and retain them, while also retaining current Sage partners. 2. Sage has developed the following methodology with regards to identifying and attracting the next generation of solution providers. a. Create detailed profiles of critical success factors for the products and markets being targeted. b. Invest the time necessary to complete a thorough SWOT analysis of the potential market opportunity, particularly as it relates to the competitive environment and the demographics of the targeted business partners. c. Define clearly the potential partner business opportunity in both financial and strategic terms. d. Identify successful partner organizations that fulfill the profile. e. Understand their behaviors demographically. f. Build messaging and the business opportunity appropriately. g. Recruit the identified new partner organizations based on building a long-term relationship with a mutual business interest and a shared vision for success.
Greatest Challenge Overcome In The Past Year:
I began at Sage on June 1st of 2009 leading the Channel Management Team. The team had been created by Paul Johnson, EVP of Sales based on the need to focus more attention on the functions of Channel Marketing, Channel Programs and Distribution Optimization. Prior to June 1st these functions were in different divisions within the organization and were not led centrally. The greatest challenge was being able to organize the functions of the team, in a timeframe that was acceptable, that would add immediate value to our Sage business partners. Being able to operate effectively and provide the leadership necessary to deliver value was indeed a learning experience. I accelerated the process by reaching out to all of my constituents; business partners, Sage product business units, Sage functional units and the Sage Senior Leadership Team to learn as much as possible as quickly as possible. I used many different approaches to engage and learn from our business partners; broadcast webinars, one-to-many partner meetings including Business Partner Advisory Committees, individual conference calls, one-to-one meetings at Sage Summit and ITA, meeting attendees at the Sage Sales and Consulting Academies, and numerous personal visits to our partners' business locations. All in all I was able to personally connect with over 500 Sage business partners by September 1st and another 250 by December 15th. This provided a firm foundation of learning which I shared with my team and the leadership at Sage to assist us in ''knowing our business partner as a customer better than anyone else'' so we can deliver what they need to be successful. I used the same approach for learning about Sage and the various business units and their strategies, along with the functional units and their goals and objectives. This provided the information and knowledge necessary to quickly align the Channel Management Team appropriately and position the team to deliver greater value in a coordinated manner to the Sage business partners. As a result the Channel Management Team began delivering value immediately by introducing a new program that partners needed to compete effectively in the marketplace, especially Mid Market ERP business partners. That recognition drove the innovation and delivery of The Sage Partner Advantage Competitive Series which began in July and has been overwhelmingly successful according to feedback from Sage partners. The value of the program is represented in more detail above. Another program introduced as a result of this learning is the field-based delivery of Sage partner Sales Skills Training and Sage partner Consulting Training workshops also represented in more detail above. The Channel Management Team will continue to drive innovation and delivery of Sage partner programs by understanding what partners experience on a daily basis and translating that learning into what Sage provides to help them be successful.
Name One Individual Who Has Had The Most Profound Impact On Your Life:
I have known Doug Burgum since 1983 when I met him through my business as an Authorized Partner for Great Plains Software. In 1987 I sold my business and accepted a position at Great Plains where I worked directly with Doug along with a team of incredibly talented and dedicated people to build and grow Great Plains Software. There is no one person who has had more impact on my life and career both from a business and personal perspective. Doug joined Great Plains as a startup in 1983 and provided the initial seed capital for the company. Mortgaging the farmland he had inherited from his father, he literally ''bet the farm'' on Great Plains and quite frankly that farming experience is exactly what the difference was between Great Plains and the myriad of competitors in the market. An article from Inc. Magazine in 1992 captures the essence of the key values Doug instilled in me and everyone else he touched at Great Plains, including our valued business partners: ''GREAT PLAINS president Doug Burgum on the management ideals he learned from working in his company's family-owned grain elevator business: ''When you've got a grain elevator, the people you serve are landowners, and they move the ownership of that land from father to son. My cousins are serving the grandsons of the people my grandfather served. That was the only business example I grew up with. You served customers for a lifetime. There was no such thing as a quick buck.'' (Quoted in Inc. Magazine, 9/92)'' This fundamental concept of understanding the value of customers and the importance of serving them for not just a lifetime but for generations is the basis of the business and personal values I and many others have internalized as a result of Doug's experience and leadership. Understanding the importance of customers is how the ''customer focused'' culture was created. This understanding of the importance of customers and how to serve them for generations became the basis for how we viewed our business partners at Great Plains. This was a major turning point in achieving success with a business partner distribution model. Once we realized how important this approach was it became the basis for developing long-term relationships of trust with them. All of this was built on a few fundamental concepts of business. The first was internalizing and living on a daily basis the Great Plains Mission Statement which was ''to improve the lives and business success of our partners and customers''. Great Plains became very passionate about the Mission and internalized it throughout the organization to the point where decisions on strategy, or pricing, or products were always preceded by a discussion about ''is this the right thing to do for our partners and customers and what will be the impact on them?'' Next was the importance of understanding our Values as an organization and internalizing those Values. The values of Caring, Courage, Commitment and Community transformed Great Plains into a highly respected and trusted organization in the eyes of our valued business partners and our mutual customers. This was extremely important in the growth of the company. This was followed by the concept of ''being better than the competition at what's important to customers''. This is a concept that Doug brought with him from McKinsey and Company where he was a business consultant prior to joining Great Plains. The concept is straight forward and becomes the basis of understanding that leads to building better channel programs and better products than your competition. This starts with being passionate about understanding the customer better than anyone else and being able to know what the customer experiences are on a daily basis. The success of this was built upon a model of interaction with channel partners on a regular basis so we could understand what they were experiencing. We then assembled that collective knowledge and used it to create and improve programs that would make our partners more successful and help them realize their potential. The last concept I want to discuss is ''know your competitors better than they know you''. This is an extremely important element of the overall strategy. This is particularly important as you choose where, how and why to compete and what will differentiate you versus the competition. This cannot be overlooked as programs and strategies are created or enhanced to assist our channel partners compete more effectively. I have been passionate about all of these business concepts and many more for the last 30 years. I have seen them produce incredible results when practiced and I use them daily at Sage with my Channel Management team and with others within the organization we touch. I evangelize these principles with our channel partners in the hope that the principles will assist them in their pursuit of realizing their full potential and achieving success. They lead to an environment that produces trust, respect and gratitude which are essential components in a long-term business relationship, which is our ultimate goal at Sage. We want to have relationships with our business partners that are positive and beneficial to both parties that transcend generations. These values and business concepts will help us achieve that goal at Sage and I am eternally grateful to Doug Burgum for instilling those fundamental business concepts in me.
