Consolidations - Telecom realitiesThe Challenge: A telecommunications software firm needed to adapt in the face of a prolonged industry downturn, concerned customers and new senior leadership. Customers were buying at greatly reduced rates and were wary of the perceived instability of suppliers. The board had recently installed a third CEO and three executive team members within 12 months. The firm needed to increase sales, reduce expenses and refocus in order to survive. It would be critical to support existing customers (historically 86% of sales) and new prospects (future market in Asia Pacific 30% of projected growth) in a high quality manner to engender faith in the viability of the company and products. Solutions: Change Catalysts determined the staffing levels necessary to support the anticipated business volumes and identified key areas for improved sales and support execution. Improved leadership team and communication practices were targeted to increase employee morale, customer and investor perceptions. A personnel reduction of 42% aligned the organization with existing market realities. Critical employees and top performers received retention bonuses or compensation protection agreements. All remaining employees participated in option grants targeted to retain staff. The transition support that exiting employees received minimized the risk of sabotage and increased the comfort level of remaining employees. Clear, consistent messages from the management team laid the foundation for the vision of business to come. Revenue increased and expenses decreased through transforming the sales organization and practices. Management layers were eliminated and cross-functional teams set up to create a comprehensive client experience from prospecting to product implementation. Sales processes and tools were adapted, as well as a sales incentive plan focused on income recognition and teamwork. Results: Ultimately the leadership team and board determined the best course was a sale of the more efficient company. Change Catalysts assisted with the preparation of business scenarios, due diligence and transition to the new owners. The company was sold for a 40% stock price premium and 95% of the employees retained employment.Contact us to learn how we can produce results for you
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