This article provides a detailed response to: How can sales teams be restructured to better align with a Breakthrough Strategy? For a comprehensive understanding of Breakthrough Strategy, we also include relevant case studies for further reading and links to Breakthrough Strategy best practice resources.
TLDR Implementing a Breakthrough Strategy in sales teams involves assessing current structures, adopting a customer-centric approach, and focusing on alignment with strategic objectives, continuous improvement, and effective communication for significant growth.
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Aligning sales teams with a Breakthrough Strategy requires a deep understanding of the organization's goals, market dynamics, and the capabilities of the sales force. A Breakthrough Strategy, by definition, aims to significantly shift market position or financial performance through innovative approaches, products, or services. This necessitates a sales team structure that is agile, aligned, and equipped with the right tools and skills to execute the strategy effectively.
The first step in restructuring sales teams to align with a Breakthrough Strategy is to conduct a thorough assessment of the current sales team structure. This includes evaluating roles, responsibilities, skill sets, and how well the current structure supports strategic objectives. According to McKinsey, organizations that realign their sales strategy with their business strategy can see up to a 5-10% increase in sales productivity. A key part of this assessment involves identifying gaps between current capabilities and what is needed to execute the Breakthrough Strategy. This may involve analyzing sales performance data, customer feedback, and market trends to understand where adjustments are needed.
Another aspect of this assessment is understanding the market and customer segments the organization aims to target with its Breakthrough Strategy. This requires a deep dive into customer needs, preferences, and purchasing behaviors. Sales teams may need to be restructured to focus on new or underserved market segments that are critical to the success of the Breakthrough Strategy. For example, if the strategy involves entering a new technology market, the sales team may need to be restructured to include roles with deep technical expertise or experience in that market.
Finally, the assessment should consider the tools, technologies, and resources the sales team needs to effectively execute the Breakthrough Strategy. This could include customer relationship management (CRM) systems, data analytics tools, or training programs. Ensuring the sales team has access to the right tools and resources is essential for enabling them to execute the strategy effectively and achieve desired outcomes.
To align sales teams with a Breakthrough Strategy, organizations must adopt a customer-centric sales approach. This involves restructuring the sales team to be more agile and responsive to customer needs and preferences. According to Accenture, companies that adopt customer-centric sales and marketing strategies can achieve up to 10% higher customer satisfaction rates. A customer-centric approach requires sales teams to have a deep understanding of the customer's business, challenges, and goals. This may involve creating specialized roles or teams focused on specific customer segments or industries.
Implementing a customer-centric approach also requires changes to sales processes and metrics. Sales teams should be measured not just on revenue targets but also on customer satisfaction, retention, and lifetime value metrics. This shift in metrics encourages sales teams to focus on building long-term relationships with customers rather than just closing immediate sales. For example, a technology company may restructure its sales team to include customer success roles that work closely with customers post-sale to ensure they are achieving their desired outcomes with the product.
Training and development are also critical components of developing a customer-centric sales approach. Sales teams need ongoing training on the Breakthrough Strategy, market trends, and customer insights. This training should be tailored to the specific needs and challenges of the sales team and include practical, hands-on learning experiences. For example, role-playing exercises that simulate challenging customer scenarios can help sales teams develop the skills and confidence they need to effectively engage with customers.
Once the organization has assessed its current sales team structure and developed a plan for aligning it with the Breakthrough Strategy, the next step is to implement the restructuring. This requires careful planning and communication to ensure a smooth transition. Change management principles should be applied to help sales teams understand the reasons for the restructuring, how it will benefit them, and the organization, and what is expected of them going forward. Clear communication and transparency are key to gaining buy-in and minimizing resistance to change.
Restructuring may involve redefining roles, creating new teams, or reallocating resources. For example, an organization may create new roles focused on strategic accounts or industries that are critical to the Breakthrough Strategy. It may also involve consolidating smaller, less effective teams into larger, more strategic teams. During this process, it's important to consider the impact on sales team morale and culture. Efforts should be made to retain top performers and ensure that all team members feel valued and supported during the transition.
Finally, the success of the sales team restructuring should be closely monitored and measured. This involves setting clear, measurable objectives for the restructured sales team and regularly reviewing performance against these objectives. Feedback should be solicited from sales team members, customers, and other stakeholders to identify areas for improvement. Continuous improvement should be a key focus, with adjustments made as needed to ensure the sales team remains aligned with the Breakthrough Strategy and is able to achieve its objectives.
Implementing a Breakthrough Strategy requires a comprehensive approach to restructuring sales teams that focuses on alignment with strategic objectives, customer-centricity, and continuous improvement. By carefully assessing the current structure, developing a plan for alignment, and implementing changes with a focus on communication and measurement, organizations can ensure their sales teams are well-positioned to execute the Breakthrough Strategy and achieve significant growth and success.
Here are best practices relevant to Breakthrough Strategy from the Flevy Marketplace. View all our Breakthrough Strategy materials here.
Explore all of our best practices in: Breakthrough Strategy
For a practical understanding of Breakthrough Strategy, take a look at these case studies.
Renewable Energy Market Entry Strategy for APAC Region
Scenario: The organization is a mid-sized renewable energy company based in North America, aiming to expand its operations into the Asia-Pacific (APAC) region.
Breakout Strategy Facilitation for Defense Contractor in Competitive Landscape
Scenario: A leading defense contractor is facing stagnation in a highly competitive and regulated market.
Breakout Strategy Development for a High-Growth Tech Firm
Scenario: A rapidly growing technology firm has been experiencing challenges in scaling its operations due to an unplanned surge in customer demand.
Breakout Strategy Formulation for Luxury Retailer in Competitive Landscape
Scenario: A luxury retail firm is struggling to differentiate itself in a saturated market.
Breakout Strategy Formulation for Boutique Consulting Firm
Scenario: The organization is a mid-sized boutique consulting company specializing in digital transformation.
Breakout Strategy Formulation for a Global Technology Firm
Scenario: The organization in focus is a global technology firm struggling to define a clear Breakout Strategy to propel growth in a saturated market.
Explore all Flevy Management Case Studies
Here are our additional questions you may be interested in.
This Q&A article was reviewed by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.
To cite this article, please use:
Source: "How can sales teams be restructured to better align with a Breakthrough Strategy?," Flevy Management Insights, David Tang, 2024
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