A fabless semiconductor firm was experiencing rapid growth worldwide. Although the sales team and managers had long tenure in the industry, they were experiencing difficulty maintaining target gross margins for product sales in foreign countries. Senior managers were also faced with the task of rapidly scaling the sales organization. The CEO and CFO contacted us for help reorganizing their front-line management structure, with a focus on training the team on selling at higher margins.
HOW WE HELPED
After interviewing sales professionals and managers from various countries, and understanding the challenges of foreign competition, we worked closely with the CFO to develop basic financial literacy training that concentrated on understanding gross margin, and the effects discounting had on the company’s profitability. This was the first time the sales team had been exposed to finance training. We also provided training and the basic tools for a new Sales Management Operating System the front-line managers would use to attract and train the right talent and manage the rapid sales growth the company projected for the next several years.
As part of the Sales Management Operating System, a new hire selection process was used by front-line managers to double the size of the sales organization within twelve months. New hires received financial literacy training and were successful in achieving management’s gross margin goals in foreign markets. The installed management system provided a solid foundation for the company’s sales growth. The company was acquired by a larger competitor at a substantial premium over the company’s closing share price at the time of the acquisition.