Case Study: Achieving Clarity in a Competitive Market
Project History
For two decades, the company was one of the leading suppliers of aircraft navigation and communication equipment. Two new competitors with innovative new products and lower pricing decided to aggressively go after their customers, stealing 50% of their market-share in just two years.
The entire senior management team was replaced and a new business strategy was created. Acquiring one of the key competitors was part of the strategy. Aggressive revenue and profit goals required a dramatic improvement in sales effectiveness.
Challenge
The sales cultures of the two merging firms were radically different, spawning serious turf battles. Account executives were unclear about the company's market positioning or direction and did not understand the value proposition of their new company. The sales compensation was changed to reward team sales rather than the individual contributor.
Within three months following the merger, one half of the company's top account executives left the company. Within six months, 70% of the sales teams were under plan. Turnover of account executives and sales managers had increased dramatically.
Although the executive team realized their problem was serious, they had few answers.
Solution
The CEO formed a sales taskforce composed of executives from sales and marketing, account executives, and sales support personnel. The team was charged with re-engineering the sales function. RavenHouse consultants worked with the team to further define their task and required business outcomes.
Over a period of several months, RavenHouse International consultants worked with the team and helped them accomplish the following:
• Re-define the company's value proposition and develop
a branding strategy
• Develop a senior level SWAT team to improve trust and
morale at every level of the sales organization
• Revise the compensation plan to reward both team
and individual performance
• Devise a three-tier career path for account executives
as part of an aggressive retention strategy
• Develop new knowledge, skill and performance standards
that have been enthusiastically embraced by account
executives and sales managers
• Create three levels of company specific sales training
• Craft a new recruiting and selection process
for account executives
Results
The company successfully built a world-class sales organization and has realized impressive results, including:
• Revenue growth rates that define them as the industry
growth leader
• Sales costs slashed by 35%
• Number one in market share
By working with RavenHouse International, the company has developed brand clarity, a strong unified sales culture, high commitment and morale, and very little turnover in the sales ranks.
