Northeast District Meeting Channel Partner Agreements June 2010 Update This session is intended to be a dialogue. • I will provide some background information. • You will discuss your opinions and feelings. • I will be tape recording the session so that I can share accurately your feedback and input with the board taskforce working on this initiative. Definition of a Channel Partner APICS recognizes three different types of Channel Partners. These are the affiliated organizations that work with APICS to deliver education, member benefits, and/or certification exams: •Within North America • Chapters – provide some or all of: education, member benefits, and group testing •Outside North America • International Associates (IAs) – non-profit organizations. Offer joint memberships and public test sites • Authorized Education Providers (AEPs) – generally for-profit corporate entities. Provide instruction. What you need to remember is: • The Channel Partner network (Chapters, International Associates, and Authorized Education Providers) is one of the most important assets APICS has, next to its intellectual property. • The primary objective is to strengthen the network not replace Chapters. Where did this come from? • In 2009, the Strategic Direction Committee recommended that APICS enter into contractual agreements with Chapters so that all APICS Channel Partners, whether inside or outside of North America, had a similarly defined relationship to APICS Corporate. • The 2009 Board of Directors approved this recommendation. 2010-2012 Strategic Priorities Channel Partners • Point of Arrival: Channel Partners use and contribute to APICS products/services to meet or exceed the needs of local members/customers. • Goal: Channel Partners achieve agreed upon measures • Objective: • All channel partners have a contractual relationship with APICS by 2012. This is seen as a positive by the Board • The detailed discussions that will occur with every Chapter to support the contract negotiation process will facilitate a better relationship between Chapters and APICS Corporate. • The contract documents that relationship. • The metrics included in each contract will be negotiated. The Chapter will play the major role in determining what metrics it can achieve. Benefits to Channel Partners • Ensures a high level of Corporate support that: • Better and more consistently meets individual chapter needs. • Sets appropriate key performance indicators allowing the chapters to also monitor the relationship. • Creates clearly defined markets. • Fosters collaboration between APICS Corporate and chapters. • Ensures APICS intellectual property is better protected. • Enables a more exclusive relationship with channel partners. • Clarifies roles and responsibility of both parties. Benefits to Customers • Ensures high quality products and services that are accessible across the globe. • Enables brand development at all touch points for members and customers. Benefits to APICS Corporate • Formalizes existing relationships so that: • We share common standards for delivery across North America. • APICS intellectual property is better protected. • Roles and responsibility of both parties are clarified. • Better leverage high performing chapters and better support/develop chapters with potential to grow APICS. • Improve the evaluation of chapter performance. • Consistency across the globe in relationships with our channel partners. Process and Timeline • June 2010 • Chair of the Board assigns a Task Force comprised of a chapter representative from each district plus three board members • Define stakeholders (e.g. Board, Chapters, etc.) • Identify roles and responsibilities for the stakeholders • Identify areas of potential risk • Perform chapter assessment (including chapter survey) • Create individual chapter profiles Process and Timeline • July 2010 • Review survey results • Review existing documents (IA and AEP agreements, other comparable document such as franchise, licensing, or dealership agreements) • Identify various levels and types of agreement • Create draft agreements including terms and conditions for stakeholder review/input • Provide status update to Board of Directors • Pending Board approval, move forward Questions • What responsibilities do you believe Chapters have to APICS? • What responsibilities do you believe APICS has to Chapters? • What do you see as the benefits of having a contract with APICS Corporate? • What are do you see as the downside of having a contract with APICS Corporate? • What would make the contract negotiation process go smoothly? • What would potentially derail the contract negotiation process?
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