Global Crossings Double Team

By Khali Henderson

In the first half of 2009 Global Crossing Ltd. (GLBC) recruited not one but two executives to lead its indirect sales team and revamped its partner playbook. That’s a big helping of change with a side of change for a channel that is crying out for greater consistency from the carrier, which has run through three channel chiefs in as many years. So, the question is, will the new game plan win back agents’ confidence?

“This is a good start,” said Ian Kieninger, general manager for carrier sales at CDW, a Global Crossing agent. “With more executive muscle and a new channel plan supported by the top brass at Global Crossing, this is a big step in the right direction.”

Dream Team? Global Crossing in February brought on Craig Butrym, a former executive from Level 3 Communications Inc. (and former professional basketball player — seriously), to fill a new post as its group vice president of government services, indirect channel and inside sales. In May, it also added another Level 3 alum, Michael Jerich, as its vice president of channel sales. While Butrym will interface with the carrier’s management team in a strategic role, Jerich will manage the day-to-day operations of the channel.

“The new structure will allow Craig Butrym the ability to spend time building support for the channel program internally, which will create consistency and protect the program well into the future. Then Mike Jerich will have the field time to keep building the channel program,” Kieninger said.

“I think it’s a strong statement to the channel that it’s not Craig doing it on a part-time basis,” said Jay Bradley, president of Intelisys Telecom Services, one of Global Crossing’s top performers, recalling one of the early concerns when Butrym joined the company to run not only indirect sales but two other divisions.

But some agents view the double team as overkill. “I don’t see the need for two high-priced resources,” one agent said on condition of anonymity. “Time will tell if it becomes a benefit.”

Bradley also is encouraged that both Butrym and Jerich have channel experience and are known to the indirect channel community.

This is Butrym’s second run with Global Crossing — the first was from 1986 to 2000, when he held various direct sales management roles. He then spent a few years at Genuity as vice president of sales for the Eastern region before it was bought by Level 3 where he has spent the last six years. Most recently he served as senior vice president of Federal Government Markets and Systems Integrators for Level 3. He spent about a year prior to that as managing director of Level 3’s European Markets Group in London. And, previous to that he held consecutive roles as senior vice president of sales for the government/education and VAR channels respectively.

Jerich was the vice president of sales at Level 3 prior to joining Global Crossing. While there he helped build Level 3’s first indirect channel program and was responsible for the company’s indirect sales organization and $75 million in revenue. In addition to helping design and implement a partner recruitment strategy, Jerich managed and negotiated Level 3’s reseller, wholesale, system integrator and VAR agreements, as well as their strategic relationships. He also helped build new channel support vehicles, including a 10-person partner support desk, a master reseller program, the Level 3 partner advisory council and a partner recruitment database. Prior to Level 3, Jerich worked as national channel sales director at NTT/Verio where he was accountable for the profitability of the indirect sales group as well as for 100 partners in the program. Jerich also has held sales positions at Tripp-Lite Manufacturing, Aprisma Management Technologies and Qwest Communications.

Bradley said he is familiar with Jerich’s track record, having worked with him as part of Level 3’s partner advisory board. “He’s a pretty smart guy. I think it’s great that Craig brought him in and I think he will do well for Global,” he said.

CDW’s Kieninger agreed that Jerich’s channel experience, particularly at Level 3, will help him “jump in and have an immediate impact.”

But more than anything else, agents are hoping that Butrym and Jerich perform well enough to stay a while. “We all hope that this is a step toward the stability that we always look at as one of the key measures of the carrier’s performance,” said Bradley. “Global Crossing hasn’t had a whole lot of it in recent years — it’s been a challenge for them.”

Booster Club. The appointments are just the latest changes in the channel team roster at the carrier. Charles Murray held the post of vice president of indirect channels for just 10 months. Murray took the post vacated by Jeff Callahan in April 2008 after only a year. Previously, the role was held by James D’Arcangelo, who also was vice president of strategic marketing at the time.

That revolving door — as well as the split job roles for previous channel chiefs — has caused agents to question the carrier’s commitment to the indirect sales channel.

It seems Global Crossing executives got the message. Neil Barua, a Global Crossing veteran who was tapped in January to head the carrier’s North American enterprise sales and collaboration services, told PHONE+ the carrier’s marketing and management resources have been realigned and refined to support the channel.

“We felt the partner program required a focused approach by a management team with specific background in indirect channel programs,” he said. “Craig Butrym and Mike Jerich have that depth, scope and experience with indirect channels. With Craig leading the partner segment as one piece of his overall responsibility in more of a strategic capacity and Mike responsible for executing the day-to-day tactical elements of the program, we’ve enhanced our ability to more fully integrate the channel into our overall sales plans and, at the same time, more finely accommodate the specific needs of our partners.”

In addition to signing on two MVPs, Barua pointed to Global Crossing’s “significant” investment in relaunching the Business Advantage Partner Program as exhibit B in making the case for the carrier’s channel commitment. “Clearly, these organizational and strategic initiatives prove that we’re serious about supporting this segment,” he said.

Even CEO John Legere has come to program’s defense, explaining to PHONE+ the channel’s significance to Global Crossing’s growth strategy in a statement: “Global Crossing’s Business Advantage Partner Channel remains a strategic distribution channel for our services. Strategic IP-based services now comprise greater than 70 percent of new sales. We believe continued investment in the channel is key to profitably growing this segment for Global Crossing. The newly rebranded and revitalized Business Advantage Partner Program will help us come even closer to this goal.”

Global Crossing executives declined to quantify the channel’s contribution as a percentage of company revenue. However, Butrym said, “There is a reason we are making these investments. That’s because we have a confidence and belief in the channel that we can move the needle by all the metrics that we judge the performance of the business by.” He said he expects the channel to meet its 2009 targets.

Butrym also noted that Barua and the finance team were involved in and have signed off on the strategic plan for the channel. “At the end of the day, it comes down to making sure that we have a plan and a program that partners see value in. It’s not just the investments but the credibility we are bringing to the program,” he said.

Despite good intentions, it’s no slam dunk. Bill Power, CEO of the Agent Alliance, which has an agency contract for its 17 member companies, said the alliance wants to give the new team an opportunity to perform, but “they just need to understand that the confidence is really waning and this is an opportunity to rebuild that confidence. We are anxious to work with them and have been working with them to build their strategy.”

Global Crossing already has called on agents for the assist, hosting them in March at the company’s headquarters in Rochester, N.Y, to get input on its new program. “The purpose was to work through and advise them on what they need to do on compensation levels and support. It was a productive, daylong session. I came away with the feeling they heard us,” Power said.

New Playbook. The carrier has spiffed up its playbook with the new Global Crossing Business Advantage Partner Program, which was unveiled June 2 with tweaks to everything from the portal to compensation.

“We want to look at the entire quote-to-cash, if you will, experience we have with the partners,” Butrym said. “That involves the extranet, that involves how we support partners, how we compensate them, making sure they understand strategically how they fit within Global Crossing and how important it is for us to be successful together. All of those elements are driving to the end goal of having a first-rate, first-class partner program.”

Butrym said the company, prompted by feedback from its agents, is working to align its support with its partners’ business models. With that in mind, the new partner program includes newly structured partner levels — platinum, gold and silver — as well as new selling tools and a newly designed partner extranet.

Global Crossing executives declined to comment on changes to the compensation plan except to say they will be “postalized” by tier. Partners, however, told PHONE+ the plan has been reduced from previous levels, but they reported the cuts were more moderate than first proposed.

Intelisys’ Bradley said the master agency can continue to be successful under the new comp plan. “They have their internal targets they need to hit on revenue and profitability and we want them to do what they need to do to be healthy. A healthy Global Crossing is a good Global Crossing,” he said.

Power said, “The changes in the compensation reflect that [Global Crossing is listening to its agents] and help restore confidence in the program. But the proof will be the level of nurturing and support they offer going forward.”

The new program plans to address that in a customized way. Jerich explained the new partner tiers are a result of a recognition that Global Crossing has different types of partners — master agents, VARs/SIs, smaller direct agents, etc. — that have different needs. “Depending on the revenue commitments, there will be different resources that will be allocated” in terms of sales support, marketing and MDF, Jerich said. For example, partner and channel support will be dedicated at the platinum level.

CDW’s Kieninger said the new support model is straightforward. “This may be oversimplifying, but the more you sell, the more support you are going to get — and that is how any program should be built,” he said.

Another agent, speaking anonymously, said his company is not convinced the support will improve, based on the limited resources the company appears to be throwing at it. “They expressed in January and reinforced in March that they would revamp support, but basically nothing has been done,” the agent said.

Jerich noted in late May he was still evaluating allocation of sales support personnel. The carrier has more than 30 people dedicated to the channel; Jerich said there may be additions, but he is looking first at “maximizing the talent” already on board.

In addition, Butrym said enhancements to the portal and self-service tools will improve service to the partners while taking some burden off the staff.

Among the new selling tools are “Battlecards,” which give partners pertinent information they need (e.g., qualifying questions, features and benefits, and competitive positioning) to sell the carrier’s solutions.

The revamped partner extranet includes new navigation and access to maps, calendars, collateral, offers and promos, and a proposal generator. It also includes a consolidated “Tool Kit” featuring the quarterly updated “fact book,” service availability maps, consolidated product matrix, and a new newsletter.

Along with these changes, the company is in the process of normalizing the disparate partner contracts that were put in place by various channel heads, so they are consistent across tiers, Jerich said.

Butrym said the carrier also plans to formalize a partner advisory board.