How to destroy a company one person at a time

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How to destroy a company one person at a time

Case study

© 2015 Copyright Sales Focus International

New Zealand • United States of America • Australia


The company was a well-established player within the construction industry with a turnover in excess of $45 million p.a. They predominantly operated along the Australian Eastern Seaboard with a large decentralised sales team. The company’s revenue relied almost entirely on the sales team’s performance, and when they did not deliver on their budgets, the entire company was exposed to the ramifications.

The company was set in its ways and was a third generation family business. Because of this legacy, things were done a certain way, as the mantra was, ‘this is the way we have always done it’. This sentiment applied throughout the business including the way staff were hired and very rarely fired. The executive cared about their staff and term of service with the company ensured a special place.

Unfortunately, this attitude did not promote a dynamic, productive or profitable business. It stifled innovation and, as a result, company profits were fluctuating with a negative trend. After three periods of negative growth, Gary, who was the CEO realised

that something needed to be done or all jobs may be on the line.

In the previous year, Gary had attended a Sales Focus International CEO workshop and in this turbulent time many of the fundamental concepts came flooding back. He realised that structure, metrics and systems were what was required to give direction to his company and provide a line that all his team must adhere. Gary had attempted to make changes of his own accord but each time the process was frustrated, as the culture was so ingrained and immovable from inside forces.

As CEO, he was committed to the task, and he did not let the past failures persuade him from his strategic vision. He reached out to a Sales Focus International consultant for a confidential chat. After this initial conservation, Sales Focus International was invited to conduct a growth capability review of the business with the primary objective to discover the underlying causes of the unpredictable revenue and what was causing the negative trend.

How to destroy a company one person at a time

- Well established National Company- Turnover in excess of $45 million p.a.- Revenue relied on the sales team’s performance- Third generation family business- Failing profits- Extended periods of negative growth


The catalyst for change The growth capability review uncovered systemic problems present throughout the business. Each of the identified areas were then provided with realistic and practical solutions that could be applied to bring about a positive result in a relatively short period.

Unfortunately, one of the greatest threats uncovered was people related. There was a culture rampant with non-accountability especially apparent within the sales team. Sam, the national sales manager, set team budgets based on his intuition with no discernible statistical method in use. As this culture had been allowed to flourish over many years, it was embedded throughout all of his team.

It was clear that if the company wanted to survive this non-productive culture needed to be addressed. Once again, Sales Focus International was invited to assist with the implementation of a change project that would see accountability restored.

World-class selling practices and methodologies were applied to the team, including Sam, the national sales manager. Sam was expected to embrace these best practices and instructed that sales force effectiveness be his goal. Sam resisted and undermined the process at every opportunity. He believed that his long-standing position with the company would allow him to weather the change and that eventually it would pass, and all would return to normal.

‘‘There was a culture rampant with non-accountability especially apparent within

the sales team. Sam, the national sales manager, set team budgets based on his

intuition with no discernible statistical method in use.’’


Unfortunately, for Sam, the CEO and Sales Focus International were committed to the turnaround as it was apparent that failure would cost the livelihoods of many of the companies valued staff. Sam eventually buckled under the pressure and in a bid to save face, exited the company.

This exit presented a valuable opportunity, as it provided the company the opportunity to hire outside of the parameters of their usual hiring criteria. The CEO with the guidance of Sales Focus International identified what type of National Sales Manager they needed to bring about the cultural change they required. They needed a person that embraced metrics and had the strength and conviction to lead the team to success.

It was identified that they required a person disparate from their existing culture, someone that profiled differently from what they would usually consider. It was determined that the best candidate would be drawn from a parallel industry as this would expand the pool of talent and bring new and innovative thinking to the position.

The turnaround

‘‘They needed a person that embraced metrics and had the strength and

conviction to lead the team to success. ‘‘


Results that made the difference With this understanding Sales Focus International using their understanding of strategy implementation and adoption of best practice sales methodologies, identified Tony, a national sales manager that would prove to be an excellent fit for the company.

After induction, which involved a comprehensive briefing on the company’s strategic plan as developed from the growth capability review. Tony embraced the structure, reporting mechanisms and sought to implement the change required to reverse the companies misfortunes.

The business responded well to this change, with results over sales goals in the first six months, totalling greater than 40 percent in the first twelve months. The second and subsequent year produced the same performance. Importantly, throughout these periods margins increased directly affecting profitability.

The company successfully navigated away from a precipice, which would have undoubtedly consumed it. The process established the company as a fore runner within their industry and are often seen as the business to emulate for achieving best practice.

- Results over sales goals in the first six months- In excess of 40 percent over goal in twelve months- Profitable subsequent years


where companies turn for revenue improvement

Sales Focus International is one of the leading dedicated sales and marketing consulting firms in the region. We work with companies to assist them in delivering sustainable revenue improvement. We are renowned for delivering results in shorter time frames. We transform

company cultures to embrace contemporary practices creating a competitive advantage.

Since 1990, we have been passionate about achieving better results for our clients.

© 2015 Copyright Sales Focus International

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How to destroy a company one person at a time