Translating Success: Big Brand to Start-Up - "Why do Channel Leaders often fail to make this transition?"

There's a recurring theme amongst many start-up SaaS companies when it comes to launching their channel. They did their research, identified and successfully recruited a big brand channel leader; however, they aren't seeing success in the channel. The issue is very real and predictable. People going from a big company to a startup, as a founder or an employee, severely underestimate the differences in how the work gets done. We'll explore why this is a hard transition and suggestions on how to mitigate the risk if you find yourself in this position.

Why do these transitions often fail?

Channel account managers from large companies can struggle for a lot reasons; however, having spent many years digging into the problem, here's how we'd summarize the challenges:

1. Culture and Environment: Start-up companies often have a different culture and work environment compared to large corporations. The fast-paced, dynamic, and entrepreneurial nature of start-ups can be a significant adjustment for channel account managers accustomed to the structure and resources of a large company. Adapting to the agile, hands-on approach required in start-ups can present challenges.
   

2. Limited Resources and Support: Start-ups, especially in their early stages, often have limited resources compared to large corporations. Channel account managers used to having extensive support, infrastructure, and teams at their disposal may find it challenging to navigate the resource constraints and be hands-on in every aspect of developing a channel program. This shift requires a more resourceful and leaner mindset.
   

3. Flexibility and Adaptability: Start-ups operate in a constantly evolving landscape where flexibility and adaptability are crucial. Channel account managers from large companies may struggle to adapt to the rapid changes, quick decision-making, and willingness to take risks that are inherent in start-ups. The ability to pivot, embrace ambiguity, and think creatively is essential in the start-up environment.
   

4. Limited Brand Recognition and Channel Network: Large corporations often have established brand recognition and an extensive channel network. When transitioning to a start-up, channel account managers may face the challenge of building brand awareness, identifying and recruiting suitable channel partners, and establishing relationships from scratch. The absence of an existing network can make it more demanding to scale the channel program.
   

5. Entrepreneurial Mindset and Autonomy: Start-up companies require channel account managers to take on an entrepreneurial mindset and work autonomously. This includes being self-driven, taking initiative, and being comfortable with ambiguity. Channel account managers from large companies who are accustomed to more structured processes and a hierarchical environment may struggle with the autonomy and freedom that start-ups demand.
   

6. Agility and Speed of Execution: Start-ups often prioritize speed of execution to seize market opportunities. Channel account managers from larger companies may be accustomed to longer decision-making processes, multiple layers of approvals, and extensive internal coordination. Adjusting to the fast-paced nature of start-ups and making swift, informed decisions can be challenging for individuals used to a more bureaucratic environment.

It's worth noting that the transition the other direction can be equally challenging -- from smaller, more agile environment to a large, slower moving organization. Each can present unique challenges. The shift in culture, limited resources, flexibility requirements, building networks from scratch, embracing an entrepreneurial mindset, and adapting to the agility of start-ups are factors that can contribute to the struggles faced by channel account managers in this transition.

What can we do if we like the candidate from the larger brand?

Many organizations might think they can overcome the potential pitfalls above or that this doesn't apply to them. In those cases, it's always advisable you consider the following actions to support these hires.

1. Ask the right questions before making the hire? An example might be: "What do think it will be like to work at a startup? What might you need to unlearn to be successful here?"

2. Set Clear Expectations: Communicate openly about the challenges and opportunities in a startup. Clarify their role and the broader expectations, emphasizing the need for adaptability, versatility, and taking ownership of their work. Stress focus, process, urgency and intensity. Even the worst startups are faster than the fastest big companies.

3. Encourage Autonomy and Innovation: Emphasize the importance of autonomy and encourage a culture of innovation. Help the new hire understand that in a smaller setting, they might have more freedom to experiment and take calculated risks. There is normally no playbook for the company they're joining; they'll need to create one.

4. Foster an Entrepreneurial Mindset: Encourage a proactive approach to problem-solving and decision-making. Promote the idea of thinking like an owner and taking responsibility for their initiatives.

5. Exposure to Cross-Functional Roles: Offer opportunities for the new hire to interact with various departments or wear multiple hats, giving them a broader understanding of the company's operations and encouraging adaptability.

6. Emphasize Resourcefulness: Highlight the need to be resourceful in a startup environment where resources might be limited. Teach them to make the most out of what's available and think creatively.

7. Feedback and Support: Provide regular feedback and support, especially during the initial phases of adjustment. Create an environment where they feel comfortable asking questions and seeking guidance. Keep in mind, the unlearning of the old ways and the learning of the new ways doesn’t come organically.

Startups move fast; or at least they should. When applied to an individual day-to-day work, this can cause some frustration and discomfort especially when playbooks or resources aren't there to assist a Channel Leader. While at a large company, they might be accustomed to a kick-off meeting, followed by several rounds of conversations, decisions, proposals, and execution — at a startup, the decision might be made in a couple of days or even hours. We don't mean to scare people away from considering hiring big brand channel leaders into a start-up, but it's important to go into these engagements with the right mindset. With an open mindset, willingness to learn, and an ability to adapt, channel account managers can leverage their expertise while developing new skills to thrive in the start-up environment and contribute to the success of the channel program.

Happy to discuss candidates you're considering or even recommend channel leaders who are builders vs. farmers. Reach out at channelsales.ai