The Caterpillar (lower right quadrant)

The Caterpillar is the most interesting of all the characters in this model and holds the most potential for the vendor channel team. These channel partners have both technical ability and visionary business acumen. They can do the job but they also understand that what makes them successful today is not enough to get them where they want to go. They don’t think only in terms of product or even technology.

These partners understand the bigger picture of strategy – where they will play, and how they will win in just one segment. They're already investing in building resources to enable them to dominate their chosen market segment. They have a clear picture of what their companies will look like when it finally becomes a “Butterfly.”

These VARs are quite rare and vendor channel teams need to take them seriously and invest in them strategically. This means providing leads that help their transition, but also go far beyond simply providing leads. It means helping them both technically and at a business level. These are the “high-potential partners” that will deliver a disproportionate share of revenue and market in the future.

The Butterfly (upper right quadrant)

The Butterfly has already made the transition from Caterpillar. It's already a winner. The vendor teams not only need to keep them close and align with the vendor, but also make sure that both teams are looking over the horizon together. What is the next trend in which this partner can become a leader, aligned with the vendor's point of view?

THE FUTURE COMES DOWN TO VISION

If you want to advance your business, the number one thing you need to think about is “vision.” Do you see your company being a technical Workhorse in 10 years? That's fine, as Workhorses are perfect acquisition opportunities for Caterpillars, which may recognize gaps in their skillsets that can help them make the transition to Butterfly. So, Caterpillars need to assess this “strategic gap” and invest accordingly. Should they build or buy?

Now, which quadrant describes your company today? And in which quadrant would you like it to be in a few years?