Sales Structure IV

Organization structure issues can't be tackled solely by new pay plans, better sales tools, or more skills training.

Now imagine instead that you had a process for reviewing your strategy and structure every two years. This activity forced you to ask the tough questions and make a sober evaluation of your market gaps.  You realized that your products were following the classic life cycle in which traditional sales rep services (for example, application support, value-added solutions, new product information) were becoming less important.  Meanwhile, the declining market was making customers far more price sensitive and savvy. 

You concluded that your sales force was not the most appropriate channel for a large and growing portion of your customer base.  As a result you created a new telesales organization, invested in on-line self service capabilities, and established a process to gradually but deliberately migrate your field sales force, with some reps transitioning to new roles and others focusing on new markets.  The average number of accounts served by each rep remains about the same--and so does each rep's compensation--as the lower value customers move to the new channels.  Your company takes market share even while it remains profitable--perfectly positioned for a "last man standing" strategy. 

It is important to apply sound diagnostics and use the right tool for the job.  Organization structure issues can't be tackled solely by new pay plans, better sales tools, or more skills training.

ACTION POINT: Redefine roles and reallocate resources as the market evolves.