When Industry Practice is Not Best Practice

When cost-cutting and downsizing are no longer supporting profit improvement, you need to look at sales.

This mature New Zealand business, an advocate of industry practice and global best practice, was in long-term shrinkage and would continue to shrink in size; not necessarily achieving profit through the decline.  A major sales transformation to best practice for sales organisations, structural realignment, and cultural change, set this business in the direction of growth and profit.

The Results

  • Direct profit from removal of excess field sales personnel/salaries $1,600,000 and maintenance of existing service model to customers.
  • Realignment of sales tasks, removing duplication within the business service model: $795,000.
  • A direct saving of $2,395,000 was achievable within twelve months, or increased budgets/quota of $16,500,000 gross revenue, with improved profitability as noted above.

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