• Recent Posts: Influencer Relations

    IDC could flourish after IDG’s sale to Chinese consortium

    IDC could flourish after IDG’s sale to Chinese consortium

    As we predicted in our April Fool’s Joke last year, IDC has been sold as part of a Chinese-led purchase that leaves CEO Kirk Campbell at the helm. IDG Capital will take control of the IDG Ventures; China Oceanwide will control IDG and most of IDC, and an independent trustee will take control of IDC’s High Performance Computing (HPC) practice, […]

    Kea Company acquires UK analyst relations consultancy Active Influence

    Kea Company acquires UK analyst relations consultancy Active Influence

    Merger consolidates Kea Company’s position as world’s largest analyst relations consultancy January 19, 2017. London — Kea Company, the world’s largest analyst relations consultancy, today completed its acquisition of Active Influence. Founded in 2010, Active Influence has helped many of the world’s largest technology companies to gain measurable business benefit from their relationships with analyst firms. Founder Richard East has become […]

    Top ten global analysts: 2016’s outstanding research

    Top ten global analysts: 2016’s outstanding research

    2016 produced some outstanding analyst research. We’ve picked the best articles from each of the world’s ten leading analysts firms, as ranked in the 2017 Analyst Firm Awards. Together they show how diverse analysts’ most compelling content can be, including deep quantitative research into mature markets, like cellphones; pointed competitive insight into corporate changes, like Dell’s integration of EMC, and […]

    IDC overtakes HfS in 2017 global Analyst Firm Awards

    IDC overtakes HfS in 2017 global Analyst Firm Awards

    Gartner and Forrester’s leadership is no surprise, but this year IDC has won back third place in our annual Analyst Firm Awards, pushing HfS Research into a still-impressive fourth place. PAC and Ovum have also risen substantially this year, rounding out the top six. In last year’s awards, we saw that firms that could create business leads for their clients […]

    Analyst Value Survey shows deeper frustration with industry analysts

    Analyst Value Survey shows deeper frustration with industry analysts

    I’ve been in New York this week discussing the Analyst Value Survey with both Kea clients and industry analysts. The 2017 report will be available early in January, but the responses show that many users of analysts’ services are reaching out to more firms than before, and are gathering quite uneven value. Firstly, the good news is that many users […]

Understanding the Analysts: Unreasonable Demands?

Recently, a global software client e-mailed us that a prominent industry analyst was demanding certain proof points for a major change in sales strategy that the vendor had just announced. The information demanded was something that this particular software company has a policy of not releasing. Our client was very frustrated and felt that the analyst was being dogmatic and unreasonable. 

Frankly, we would have asked for similar proof points if we were in the analyst’s position. The vendor shouldn’t take the demand personally, as even a moderately skeptical analyst should say “ok, nice idea but how are you going to do it?” A good analyst will always peel back the onion to see if there is any credibility to the plan. Our criticism of the analyst lies in not searching for or accepting alternative proof points to support the vendor’s claims.

Talk is cheap — many vendors announce grandiose schemes with no plans to invest in the necessary resources to execute those plans. Another common mistake vendors make is grossly underestimating the work required to implement a particular plan. Sometimes they frankly don’t understand what they need to do in order to be successful. Yet another issue is they’re ignoring the internal political and cultural realities of making a major change.

There are multitudes of real-life examples we could list where vendors wanted analysts to accept something at face value. One of the values that analysts provide to IT buyers is risk management.  In order to provide good advice about what to buy or how to implement it an analyst must have sufficient and believable data about the chances of success. Analysts would have egg on their faces if they publish a report merely based on what the vendor said without demanding substantial proof points. It only takes a few experiences of publishing research based on vendor’s statements – and then having it blow up in your face – for an analyst to become cynical, skeptical, quizzical, distrustful, suspicious, hostile, an inquisitor, and any other descriptors you care to add.

However all is not lost. Use this type of a situation as an opportunity to work with the analyst to determine what they really require or what could be supplied as an alternative set of proof points.

SageCircle Technique:

  • Arrange a conference call between the analyst and the most senior executive for the business unit making the announcement
  • Even though exact numbers cannot be given, the executive should be prepared to talk ranges or other surrogates
  • Talk about the complexity of making such a change
  • Demonstrate that you know the extent of the challenges
  • Be prepared to talk about the tactical plan and calendar milestones. The more detail the better (e.g., each sales rep is going to receive 17.5 hours of classroom instruction in three blocks over a five-week period with 10 units of online learning tracked by this training software
  • Be candid about uncertainties
  • If there are issues that have not been decided, enlist the analyst in providing insight into tackling these problems
  • Arrange follow-up calls at each of the milestones to demonstrate execution and build credibility

Bottom Line: Vendors need to negotiate with analysts on the type of proof points needed to support a vendor announcement. Sometimes it will be necessary to take a deep breath and be calm whenever an analyst makes what appears to be an outrageous demand. This is a negotiation; always push the discussion further by exploring different proof points and other ways to meet the analyst’s needs.

Question: AR – What has been your successful or unsuccessful techniques for dealing with analyst demands for proof points you cannot provide?

 

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