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VALUE CREATION IN
HIGH-PERFORMANCE ORGANIZATIONS
Benny Corvers
19 March 2014
3
INCEPTION
THE ORGANIZATIONAL LIFE CYCLE
TIME
SALESVOLUME
GROWTH
MATURITY
DECLINE
* Source: Smith et al. (1985)
4
CLIENT Market, Sell, Design, Produce & Deliver
IN THE BEGINNING, THERE WAS A START-UP
5
CLIENT Market, Sell, Design, Produce & Deliver
IT ATTRACTED MANY CLIENTS
6
CLIENT
LOADS OF CLIENTS, ACTUALLY …
Market, Sell, Design, Produce & Deliver
7
TIME FOR OUR FIRST NEW HIRE!
8
CLIENT
SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW
Market, Sell, Design, Produce & Deliver
Admin
9
CLIENT
THEN WE DECIDED TO SPLIT SALES & OPERATIONS
Sales & Marketing
Admin
Design, Production &
Transport
10
CLIENT
BUT THOSE DAMN CLIENTS KEPT COMING …
Sales & Marketing
Admin
Design, Production &
Transport
11
TIME FOR OUR SECOND HIRE!
12
CLIENT
SO WE ADDED OUR FIRST MANAGEMENT LAYER
Sales & Marketing
Admin
Design, Production &
Transport
Sales Management
13
CLIENT
THEN WE SPLIT UP OPERATIONS
Sales & Marketing
Admin
Design
Sales Management
Production &
Transport
14
CLIENT
AND WE ISOLATED MARKETING FROM SALES
Sales
Admin
Design
Sales Management
Marketing
Production &
Transport
15
AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Presales
16
NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY
Sales
Admin
Design
Sales Management
Production &
Transport
Marketing Presales
Operations
Manager
17
WHO STARTED BY CREATING TWO MORE UNITS
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager
18
AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager
Invoicing
19
EVEN THE OPERATIONS NOW NEED SUPPORT STAFF
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations
Manager
Invoicing Quality Warehouse
20
IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
21
SO WE ADDED SOME BIG HONCHOS ON TOP
Admin
Design
Sales Director
TransportMarketing Presales
Supervisor
Production
Invoicing Quality Warehouse
CTO
COOCEO
Sales
22
WE ARE NOW LOSING SIGHT OF OUR CLIENT
23
OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
24
AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
25
THE END RESULT? WE ARE LOST …
26
SO WHAT HAPPENS IF SALES ARE DOWN?
TEN ‘PROVEN’ RECIPES
#1 Fire sales reps
#2 Replace sales management
#3 Increase marketing spend
#4 Eliminate marketing
#5 ‘Align’ sales & marketing
#6 Install a new, expensive CRM tool
#7 Get everyone an iPad
#8 Kick-in some more incentives
#9 Roll-out new sales training
#10 Start from #1
27
CLIENT
SO HOW CAN WE GET BACK TO THE EARLY DAYS?
Market, Sell, Design, Produce & Deliver
Clients take center stage
A simple and transparent organization
Efficiency and low overhead cost
Agility to change course
28
LET’S LOOK BEYOND THE SYMPTOMS
29
WE NEED TO INTEGRATE MULTIPLE VIEWS
30
Map #1 Map #2
Map #3Map #3
LIKE PLANNING A FAMILY TRIP
Define the
Territory
Which country?
Zoom in
Vision, Mission
& Strategy
Where are we
going?
Enter GPS
Coordinates
Design Specs
Take personal
wishes and needs
of each family
member into
account
Plan according to
budget
Consider the
destination from
multiple angles
Structure Systems
CulturePeople
31
FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS
FUNCTIONAL STRUCTURE
Function 1 F2 Fn…
FLOW
BASED
STRUCTURE
Client Order 1
O2
On
…
32
WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS
CLIENT
PROSPECTING
ACCOUNT
MANAGEMENT
BUSINESS
ADVISORY
SKILLS
PRESALES
EXPERTISE
PRICING
KNOWLEDGE
TECHNICAL
WRITING
SKILLS
OPERATIONS
EXPERTISE
HR EXPERTISE
RELATIONSHIPS
Shared objectives
Shared knowledge
Mutual respect
COMMUNICATION
Frequent
Timely
Accurate
Problem-Solving
33
IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES
NORTH
SOUTH
PUBLIC
LARGE
ACCOUNT
MANAGER
MARKETING
SPECIALIST
BUSINESS
CONSULTANT
PRESALES
CONSULTANT
PRODUCT
MANAGER
HR SPECIALIST
ACCOUNT
MANAGERS
MARKETING
SPECIALIST
BUSINESS
CONSULTANT
TECHNICAL
WRITER
QUALITY
MANAGER
FINANCE
SPECIALIST
LARGE
ACCOUNT
MANAGER
ACCOUNT
MANAGERS
BUSINESS
CONSULTANT
PRESALES
CONSULTANT
LEGAL
OFFICERS
BUDGET &
CONTROL
SPECIALIST
34
WITH MORE ENGAGEMENT AND MOTIVATION
JOB CONTROL
JOB DEMANDS
LOW-STRAIN
JOBS
ACTIVE
JOBS
HIGH-STRAIN
JOBS
PASSIVE
JOBS
MOTIVATION &
LEARNING
STRESS
* Source: Karasek, 1979
35
Client-Centric
Organization
THE END RESULT
Ownership Motivation
Agility
Reduced
Complexity
Better
Coordination
CLIENT
36
MORE ABOUT WORKPLACE INNOVATION
37
LET’S NOW HEAR THE STORY OF QUINTESSENCE …

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High-Performance Organizations for a New World of Sales

  • 1. VALUE CREATION IN HIGH-PERFORMANCE ORGANIZATIONS Benny Corvers 19 March 2014
  • 2.
  • 3. 3 INCEPTION THE ORGANIZATIONAL LIFE CYCLE TIME SALESVOLUME GROWTH MATURITY DECLINE * Source: Smith et al. (1985)
  • 4. 4 CLIENT Market, Sell, Design, Produce & Deliver IN THE BEGINNING, THERE WAS A START-UP
  • 5. 5 CLIENT Market, Sell, Design, Produce & Deliver IT ATTRACTED MANY CLIENTS
  • 6. 6 CLIENT LOADS OF CLIENTS, ACTUALLY … Market, Sell, Design, Produce & Deliver
  • 7. 7 TIME FOR OUR FIRST NEW HIRE!
  • 8. 8 CLIENT SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW Market, Sell, Design, Produce & Deliver Admin
  • 9. 9 CLIENT THEN WE DECIDED TO SPLIT SALES & OPERATIONS Sales & Marketing Admin Design, Production & Transport
  • 10. 10 CLIENT BUT THOSE DAMN CLIENTS KEPT COMING … Sales & Marketing Admin Design, Production & Transport
  • 11. 11 TIME FOR OUR SECOND HIRE!
  • 12. 12 CLIENT SO WE ADDED OUR FIRST MANAGEMENT LAYER Sales & Marketing Admin Design, Production & Transport Sales Management
  • 13. 13 CLIENT THEN WE SPLIT UP OPERATIONS Sales & Marketing Admin Design Sales Management Production & Transport
  • 14. 14 CLIENT AND WE ISOLATED MARKETING FROM SALES Sales Admin Design Sales Management Marketing Production & Transport
  • 15. 15 AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT? Sales Admin Design Sales Management Production & Transport Marketing Presales
  • 16. 16 NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY Sales Admin Design Sales Management Production & Transport Marketing Presales Operations Manager
  • 17. 17 WHO STARTED BY CREATING TWO MORE UNITS Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager
  • 18. 18 AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing
  • 19. 19 EVEN THE OPERATIONS NOW NEED SUPPORT STAFF Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing Quality Warehouse
  • 20. 20 IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
  • 21. 21 SO WE ADDED SOME BIG HONCHOS ON TOP Admin Design Sales Director TransportMarketing Presales Supervisor Production Invoicing Quality Warehouse CTO COOCEO Sales
  • 22. 22 WE ARE NOW LOSING SIGHT OF OUR CLIENT
  • 23. 23 OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
  • 24. 24 AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
  • 25. 25 THE END RESULT? WE ARE LOST …
  • 26. 26 SO WHAT HAPPENS IF SALES ARE DOWN? TEN ‘PROVEN’ RECIPES #1 Fire sales reps #2 Replace sales management #3 Increase marketing spend #4 Eliminate marketing #5 ‘Align’ sales & marketing #6 Install a new, expensive CRM tool #7 Get everyone an iPad #8 Kick-in some more incentives #9 Roll-out new sales training #10 Start from #1
  • 27. 27 CLIENT SO HOW CAN WE GET BACK TO THE EARLY DAYS? Market, Sell, Design, Produce & Deliver Clients take center stage A simple and transparent organization Efficiency and low overhead cost Agility to change course
  • 28. 28 LET’S LOOK BEYOND THE SYMPTOMS
  • 29. 29 WE NEED TO INTEGRATE MULTIPLE VIEWS
  • 30. 30 Map #1 Map #2 Map #3Map #3 LIKE PLANNING A FAMILY TRIP Define the Territory Which country? Zoom in Vision, Mission & Strategy Where are we going? Enter GPS Coordinates Design Specs Take personal wishes and needs of each family member into account Plan according to budget Consider the destination from multiple angles Structure Systems CulturePeople
  • 31. 31 FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS FUNCTIONAL STRUCTURE Function 1 F2 Fn… FLOW BASED STRUCTURE Client Order 1 O2 On …
  • 32. 32 WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS CLIENT PROSPECTING ACCOUNT MANAGEMENT BUSINESS ADVISORY SKILLS PRESALES EXPERTISE PRICING KNOWLEDGE TECHNICAL WRITING SKILLS OPERATIONS EXPERTISE HR EXPERTISE RELATIONSHIPS Shared objectives Shared knowledge Mutual respect COMMUNICATION Frequent Timely Accurate Problem-Solving
  • 33. 33 IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES NORTH SOUTH PUBLIC LARGE ACCOUNT MANAGER MARKETING SPECIALIST BUSINESS CONSULTANT PRESALES CONSULTANT PRODUCT MANAGER HR SPECIALIST ACCOUNT MANAGERS MARKETING SPECIALIST BUSINESS CONSULTANT TECHNICAL WRITER QUALITY MANAGER FINANCE SPECIALIST LARGE ACCOUNT MANAGER ACCOUNT MANAGERS BUSINESS CONSULTANT PRESALES CONSULTANT LEGAL OFFICERS BUDGET & CONTROL SPECIALIST
  • 34. 34 WITH MORE ENGAGEMENT AND MOTIVATION JOB CONTROL JOB DEMANDS LOW-STRAIN JOBS ACTIVE JOBS HIGH-STRAIN JOBS PASSIVE JOBS MOTIVATION & LEARNING STRESS * Source: Karasek, 1979
  • 35. 35 Client-Centric Organization THE END RESULT Ownership Motivation Agility Reduced Complexity Better Coordination CLIENT
  • 37. 37 LET’S NOW HEAR THE STORY OF QUINTESSENCE …