Success Story - "Simplifying Marketing to Reduce Costs and Increase Sales"
$7B Computer Reseller, System Integrator, and IT Outsourcer
Company Situation and Problem
Acquisition created two large, overlapping sales and customer service organizations with over 1500 people, and two complex overlapping marketing organizations with different go-to-market strategies. Market messages were inconsistent. Substantial conflict existed about "go-to-market" strategies, with very little cooperation between marketing and field sales organizations. Measurements and financial controls were lacking. Comp plans were in disarray with many upset over not receiving promised bonuses. No approved budget existed, and marketing costs were out of control. Multiple individuals were engaging suppliers without controls.
Many sales personnel were under quota with poor pipelines. Very different sales compensation plans. One company was more adept at selling Services than the other. Analysis showed Company could achieve coverage with 30% fewer salespeople.
Paladin Actions & Recommendations
Drove top management agreement on key company message and "go-to-market" strategy. Redefine role, objectives, workflow, processes, supplier management, measurements and budgets for the marketing function, eliminating overlap and waste. Downsize marketing over 50%, moving people to jobs for which they were best suited, terminating those least suited. Extensive communications and training for marketing and sales personnel was suggested.
Develop a single sales comp plan. Evaluate and stack rank sales personnel by quota performance, pipelines, and Service sales skills, keeping the top 70% and terminating the remainder. Substantial sales training on strategy, sales processes, comp plans, customer relationships.
- Go-to-market message simplified and communicated, at great reduction in cost. Suppliers were reduced by 70% through price/performance competition
- Improved marketing workflow with 60% fewer employees
- Marketing management and sales operations consolidated under one VP, minimizing conflicts.
- Savings exceeded $4M. Sales integration and new account assignments were accomplished in less than 30 days, with minimal customer impact, and a 35% reduction in sales cost.