Success Story - "Reviving Flat Service
Growth"
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Company Description
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$2B Computer
Reseller
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Company Situation
and Problem |
Service sales revenues flat for 5 years, before and after the acquisition of
a large national computer service company. Service sales were not integrated
into Product sales. Management perceptions that service sales personnel were
lazy "prima donnas" who should probably be terminated. Analysis revealed key
strategic differences within executive management on role of "services". 500
Product sales people were "blocking" 25 Service sales people from "their"
accounts due to perceived service quality issues. Service sales reported to
Product sales managers. Comp plans encouraged infighting and obscured
accountability; no Service sales reporting existed; Service quotas were too
low; Service sales calling too low. |
| Paladin Actions & Recommendations |
Recommended clarification of Services strategy, separating Service sales
reporting from Product sales management, and development of a program to
identify, address, and communicate perceived Service quality issues. Detailed
Service sales measurement, reporting and accountability, and increased
quotas. Cross-trained Product and Service sales on the benefits of
cross-selling both into their accounts, and developed comp plans that drove
cooperation.
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| Client Results |
= |
Within a year, Service sales had grown 25% and were
growing at a 50% rate. |
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= |
Four of the original service sales people had resigned,
but the remaining 21 were all performing above their new, higher quotas. |
|
= |
Large numbers of the Product sales force were now also
selling services. |
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Flat Growth Reversed in 1 Year |
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