Success Story - "Repositioning For Growth
and
Profitability"
|
Company Description
|
$100M Computer Services Division of Fortune 5 Firm
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Company Situation
and Problem |
Flat sales and poor profitability, despite 300 person sales force, in a
division selling computer maintenance contracts to small and mid-sized firms.
Analysis showed unaddressed market shifts to desktop and multi-vendor
services. Local competition had cost advantages; OEMs had scale advantages.
Service offerings were narrow; target customers too small to justify cost of
sale. Salesmen calling too low in companies too small. Sales processes
inconsistent; comp plan driving undesired behavior, measurements inadequate.
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| Paladin Actions & Recommendations |
Recommended strategy shift to multi-vendor, desktop maintenance, and related
service offerings, targeting of C-level executives in large national
accounts, with extensive sales training, new comp plans, and increased
quotas.
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| Client Results |
= |
Implementation was phased. New offerings were developed
and selling was focused on C-level management in large, nationally
distributed multi-vendor companies, blocking local competitors who could not
compete nationally, and OEMs who could not address multi-vendor environments. |
|
= |
Sales training was instituted; sales quotas were raised;
comp plans revised to reward transition to the new model. Over time, 1/3 of
the sales force demonstrated the required skills. The rest resigned or were
removed for performance. |
|
= |
Revenues doubled in two years, while the 300-person sales
force was reduced to a 50-person field force, and 20-person centralized
proposals group. |
|
= |
Average order size rose from $3K to $1M. Profitability
improved from substantial losses to profitable at the same time. |
|
|
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Repositioning Doubled Sales |
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