Business practices and concepts come and go. But many new business ideas that are introduced through the business press, consulting firms, etc. really aren’t new at all. They’re just new to the latest generation of business managers. An article in the New York Times caught my eye the other day. It was déjà vu all over again.
It was a report about a seismic change taking place at Walmart. The short story is this: Faced with declining same store sales, declining customer satisfaction scores, and increasing employee disenfranchisement, management decided to embark on a bold experiment in early 2015 –- pay their employees more. In fact, pay them at market rate. Early results are promising, as Walmart is now seeing gains in productivity, same store sales and customer satisfaction.
It’s all about making sure your sales organization is properly prepared to enter the market and perform.
For VC’s looking to invest, the details behind how the systems of the company they are investing in will deliver revenue growth deserve more attention than, unfortunately, they usually get
In my experience with multiple firms, I have seen a gap in the due diligence process of firms investing in startups or even later round investments. I believe that many investment groups tend to focus on the macro components needed to drive revenue growth. Typically, this includes the uniqueness of the technology, scalability of the product/service, market potential, market expansion plans, competitive set.
Sales organization success – you choose your path.
They cost a lot of money and consume a lot of resources.
I have built and managed sales organizations for 25 years and we are always the necessary black sheep in the family. Automation has allowed some relief from us but most companies for the most part have someone selling something to someone.
So what does this mean for companies that have secured investment from VC’s / PE’s or other Investment groups? You are now officially on the clock to drive revenue. The term “Scaling Up” your organization has become a reality.
Dispatches From the Strategy Trenches: When companies get blindsided
“What are you telling me? Your strategy just isn’t going to fly with either me or my Board. Our situation isn’t as bad as you’re making it out to be.”
Boy, these are not the words you want to hear as a newly promoted Partner in a consulting firm. My team had just presented a well-researched, logical, fact-based argument which we firmly believed would persuade our client that a change of strategy was imperative.
Pablo Picasso, Three Musicians (1921), Museum of Modern Art, New York.
Change within any organization is really hard, so you’d think that it would be a no-brainer to avoid adding self-inflicted wounds to the process. Unfortunately, and too often, this is exactly what happens. I’ve come across senior managers – and CEOs – who play the Blame Game, actually making change more difficult and even impossible.