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Monday, March 07, 2005 |
I think we have to distinguish here too between the analyst him/herself
and the organization they work for. I can't tell you how many
times I have been on the phone with analyst/executive and the analyst
rather sheepishly says - "Oh, I really need to give you the sales pitch
now." Or something along those lines, intimating they are forced to it
by "management."
I question whether research associates are the best people to
give sales pitches. Those two skills don't always go together!
Many times, for clients, our meetings with analysts are two-fold.
To get on their radar screen, and to evaluate whether we want to pay
them for future engagements. The sales discussion has always been
some part of the negotiation. But, over the past years, the
balance of power has shifted to the sales side.
I agree that analysts should not be seen as objective or independent, when you have to pay to play.
Aside: I work with Gene Signorini of Yankee Group, and now Nick
McQuire, through the Mobile Enterprise Alliance and I have been
impressed by both of their smarts. This has been mainly true over
time of Yankee analysts as a whole. My original rant referenced
above comes from Oct. 2003. Maybe their scheduling system has
changed since then; I haven't used it in awhile. Gene and Nick
are members of the MEA's advisory board and I don't need to go though
the scheduling system to talk to them.
11:10:26 AM
RadioEdit
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If you've been following this transparency channel, then you may have
seen how I just took the IT research community task over its lack of
transparency. For obvious reasons, I wrote this from a reporter's
perspective. I just got done reading Elizabeth Albrycht's perspective
from the public relations side of the equation and all I can say is
"Someone get me the Pepto please." Give it a read and you'll see
why it just makes you ill.
The most disturbing quote from her posting -- one that may corroborate
the tainted process that I read about in the InternetAcceleration
newsletter -- talks about how analyst briefing requests are held
hostage for a ransom of a sales pitch. Albrycht has no qualms
about identifying who engages in what practices:
Then there is Yankee. You now have to talk to a sales person before you
are allowed to request a briefing. You have to listen to their pitch
before you get to climb Olympus and talk to the ever-quoted Zeus.
The implication from Albyrcht's account is that if you're a vendor
that's not a customer of a research company, then to get on an
analyst's radar (an analyst that the rest of the world trusts to have
objectively surveyed the entire landscape by the way) requires a sales
pitch first. Imagine if this was standard practice in the press
too? Holy cow! Media company's would be making money hand over
fist. Thankfully, it's not. At least not where I've worked.
All vendors have an equal shot at me. I'm not saying that I'll
write about every one, or even take every briefing that's tossed my
way. That's physically impossible. But if my sole purpose
of being was to offer exhaustive research on some vertical
category in order to empower buyers to make informed decisions, then
I'd want to hear from every single player in that category on a regular
basis and I woudn't want my sales department standing in the way of
those briefings.
But instead, we have eyewitness accounts from outfits like the
InternetAcceration newsletter that are disturbing at best when it comes
to the implications to a research reports objectivity and thoroughness:
We asked a few of
the vendors listed in the [Magic Quadrant] how much effort Gartner put into its evaluation
(did Gartner contact them, interview reference accounts, talk to investors,
business partners, review "bake off" findings...) and we were basically told
that, from these vendors' perspective, Gartner had done very little. Here's
a shocking example of what one vendor told us: - "we spent about a half hour
with ... [Gartner Research Vice President Name Deleted] ...of Gartner almost
exactly one year ago. We gave him a brief overview of our company and
exchanged pleasantries. As I recall the subject of a 'paid relationship with
Gartner' was raised more than once."
Now,
before we go casting the whole lot as a bunch of crooks on the take,
I'd like to point out a few things. First, research companies,
like all other companies, can't exist without revenues. And given
that their research is useful to the buyers of IT as well as the
vendors who are featured in it (eg: for competitive analysis), it makes
perfect sense for research outfits to pitch both communities on
research provision. But, like the press, the #1 asset that a
research outfit has is it's credibility. If it loses that, it loses
everything. So, in the name of credibilty, great care must be
taken not to poison the well. As a researcher, I'd want to spend
a few hours per quarter (or more) with each of the companies in my beat
and, in the name of revenue, I think it would even be fair to let them
know that my research results are available to all parties on the same
terms and who the contacts are if they're interested. But I would
also engage in complete disclosure. First, I'd have a publicly
available disclosure that describes how I go about guaranteeing
objectivity and comprehensiveness. In it, I'd mention what my
company's business model is and how I occasionally discuss the
availability of my research with all potential consumers but that it's
more of an awareness thing than a hard sell and that it in no way
impacts the outcome of my reports. Then, in my reports and any
summaries of them that get republished by other entities (charts for
example), I would be very clear about who in the report is a paying
client of the company, and who is not.
Playing a role in sales, making money, and having a financial
relationship with the companies or people that a researcher researches
isn't the mistake. The mistake is in not disclosing everything
there is to disclose about how the process works and where credibility
could be called into question should the nature of certain
relationships that aren't otherwise disclosed become public
information. With the blogosphere, it's only a matter of time
before more of these relationships and processes are outted and certain
research outfits are put on the defense (never a good position to be
in). Better to go on offense so that by the time a question comes
up, the world has pretty much already established a comfort level with
how things work. The bonus is that, just like with journalists,
when researchers know that full transparency is in effect, they have no
choice but to work extra hard to be objective and avoid any
misperception of bias. The resulting research can only enhance a
research outfit's credibility and revenue prospects.
Update: A person claiming to be David Scott Lewis has responded
to my original post on researcher transparency with his own first hand
accounts and uses the disturbing verb "Aberdeened." I've never
met Mr. Lewis, can't guarantee that it was him that made this post (if
you are him and want to "authenticate," please e-mail me), and I cannot
vouch for the authenticity of his comments. But, if for no other reason
than the fact that his storytelling shares some commonalities with
other accounts of shameful behavior, it's worth a read.
8:10:06 AM
RadioEdit
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© Copyright 2005 David Berlind.
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