Random Stuff: VAR versus Partner for Dynamics GP

In the software community the terms VAR (Value-Added Reseller) and Partner are often used interchangeably. I.E. "Who's your VAR". "My Partner is...."

When I describe both I don't think the terms should be used interchangeably. Here's a few distinctions between the two.

VAR

Sells software. (no matter what is best for the client.) This is how a VAR is compensated thus the need to sell whenever possible.

Adds value to the product by adding features or service. Services provided by a VAR often includes integrating, customizing, consulting, training and implementation. There's been a lot of blogs posted recently on why or why not you should customize. In the VAR mindset, the more done from these activities the greater the income from that client.

Partner (Partnership)

Trusted advisor. Partners are more then resellers, implementers, etc. Partners advise clients on what the software will do and what it won't do. When a Partner recommends a third party software or customization it is because of experience and knowledge that the addition will be in the best interest of the client.

Business Consultant. Not only used to implement software, used as a business/management consultant. I really believe the Dynamics software is only a small part of a successful implementation. We've all seen installations where you wonder "what in the world was that VAR/implementer thinking" and the software is a hindrance rather than a help. A partner will consult with the client and sometimes hold firm when a client is trying to do something with the software that will cause pain and heartache down the road. (I.E. Fixing something in the back end instead of through the user interface. I was asked to fix 100 transactions from SOP that had something wrong with them. I said no as the tables involved included GL, SOP, RM, CM (bank rec). I supposed I could have done it with enough time and effort but recommended simply fixing through the front end even with the large amount of transactions effected.)

Colleague - It sounds kind of hokey, I know, but clients are way more than just business transactions. I wouldn't go so far as to say that partners/clients should be friends (certainly some are) but I would say in the Partner/client relationship the word colleague (Stolen from LinkedIn) certainly fits the bill. A partner would not do anything to take advantage of a colleague and certainly always has their best interest in mind.

Every once in a while we have a customer leave our "flock." It always makes me stop and think how the relationship we had with the former customer went from being a Partner to just another VAR. Consider doing the following to protect the relationship between Partners and customers:

Consistent contact. Doesn't have to be daily or weekly in all cases. Certainly not if a project in not underway. I'd suggest at frequent contact by newsletter, email update on both company happenings and Dynamics news, phone call, Blog posting, customer lunch and learn, LinkedIn etc. Anything that can keep communication open between partners. We try to contact customers (depending on situation) by phone once a quarter and in person semi-annually.

Continual improvement - This includes improving the client/partner relationship, partner knowledge, implementation process, follow-up. If you are not getting better you are getting worse. There is no staying the same. So if you think your relationship is about the same as last year with your partner/client, I'd suggest looking at ways to improve as most likely things are getting worse and it's just not apparent.

Partner support desk - Personnel that are reachable and responsive. I think it's critical to have a support desk for partners to get a sense of their clients needs. I may be biased as I work in the support area of our company but whenever anyone needs to know about a certain client the first place consultants, sales people, and management turn to is the support people. Support is in constant contact clients. The support team's whole purpose is to help the client thus making a bond between client and Partner stronger.

Anything else you would consider important to building, maintaining or improving the Partner relationship?

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