Leading Without Authority and the Stakeholders: Navigating Product Delivery Models
In the intricate world of selling to national accounts, GPOs, IDNs, and government contracts, understanding and leveraging your stakeholders is paramount, particularly when you're leading without formal authority. Leadership, communication, and strategic coordination are essential to successfully navigating these waters. Moreover, the method you choose to deliver your products adds another layer of complexity, bringing with it its own set of stakeholders, challenges, and opportunities.
Delivery Models: Direct vs. Distribution
Two primary models for providing products to customers are direct delivery and the distribution model. Each model comes with its own unique set of dynamics and requires a different approach to stakeholder engagement.
Direct Delivery Model (Generally in the Acute Market)
Pros:
Direct Relationship: This model fosters a closer relationship with your customers. By delivering products directly, you maintain control over the entire customer experience, from order to delivery.
Immediate Feedback: Direct interactions allow for real-time feedback and quicker resolution of any issues, enhancing customer satisfaction.
Brand Loyalty: Maintaining a direct line of communication with your customers can build stronger brand loyalty and trust.
Cons:
Resource Intensive: Direct delivery can be resource-heavy, requiring significant investment in logistics, customer service, and sales infrastructure.
Scalability Issues: Scaling direct delivery operations can be challenging, particularly in large or geographically diverse markets or when you need to provide small amounts of your product with custom packages.
Distribution Model (Generally in the Non-Acute Market)
Pros:
Sales Multiplier: Utilizing distributors can significantly expand your reach. Distributors often have established networks and relationships that can be leveraged to drive sales.
Cost Efficiency: Distribution models can reduce logistical burdens and costs, as distributors handle much of the warehousing, shipping, and customer service.
Market Penetration: Distributors can provide valuable market insights and help penetrate new markets more quickly and efficiently.
Cons:
Loss of Direct Contact: One of the biggest drawbacks is the loss of direct contact with your customers. This can make it harder to gather feedback and build strong customer relationships.
Dependence on Distributors: Relying on third parties can introduce risks related to distributor performance and reliability. Your success becomes partially dependent on their efforts and effectiveness.
Engaging Stakeholders in Different Models
Regardless of the model you choose, engaging both internal and external stakeholders is crucial. Here’s how you can approach stakeholder management in each scenario:
Internal Stakeholders
Senior Leadership: Keep senior leaders informed about your chosen delivery model and its impact on strategic goals. Their support is vital for resource allocation and strategic alignment.
Finance: Work closely with finance teams to ensure the chosen model aligns with financial goals and constraints. They can provide insights into cost management and profitability.
Sales Operations: Sales operations need to adapt processes and tools to support the chosen model. Effective collaboration can streamline operations and improve efficiency.
Marketing: Marketing must align their strategies to the chosen delivery model, whether it’s direct or through distribution, to ensure cohesive messaging and customer engagement.
External Stakeholders
Customer Leadership: Engage with key decision-makers in customer organizations to ensure alignment and address any concerns or preferences regarding the delivery model.
Product Users: Understand the needs and preferences of the end-users of your products. Their feedback is invaluable for continuous improvement and customer satisfaction.
Channel (Distribution) Partner(s): For distribution models, work closely with distributors to ensure they are adequately trained and equipped to represent your brand effectively with a pricing model and incentives that work.
Conclusion
Leading without authority requires a deep understanding of the stakeholder landscape and strategic coordination. Whether you choose direct delivery or a distribution model, each has its own set of stakeholders, benefits, and challenges. By effectively managing these dynamics, you can drive success and build sustainable relationships with both internal and external stakeholders.
Choosing the right delivery model is not just a logistical decision; it's a strategic one that can significantly impact your market presence and customer relationships. Weigh the pros and cons carefully and engage your stakeholders thoughtfully to ensure your approach aligns with your overall business goals and delivers the best possible outcomes for your customers.
Call to Action
Have you faced challenges in deciding between direct delivery and distribution models? How do you manage stakeholder engagement in your organization? Share your thoughts and experiences in the comments below. Let's continue the conversation on leading without authority and navigating the complexities of modern sales strategies.