Boosting ROI in a Time of Uncertainty

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Case Summary

Considered a leader in the telecommunications networking space, this $800M division of a global technology company produced test/ measurement equipment and solutions for large telcos and equipment manufacturers. While they sold to telcos across the globe and have win ratios north of 60%, leadership felt they could recognize higher returns.

Business Challenge

The client struggled to understand where to allocate capital and resources for the highest return.  They did not have a good baseline understanding of optimal resource and capital allocations, including productivity, resource loadings, and cost of sales. While in the middle of creating their annual operating plan (AOP), leaders discovered they needed more insight into areas for improvement and strategic ‘bets.’

Symmetrics Group Approach

Symmetrics Group worked with this high tech company on the following items:

  • Sales Resourcing – determined where their resources were concentrated and what the ratios were among various roles (e.g., sales engineers and sellers or sales management and sellers, etc.)
  • Sales Productivity – identified pockets of high/low productivity and if sales teams were aligned to company strategy and investments
  • Cost of Sales (COS) – determined the COS% by region, BU and product level, and compared these to external and internal benchmarks, along with historical trends
  • Sales Coverage – conducted a high-level analysis around current coverage and ‘white or red’ space opportunities across regions, BUs, and accounts
  • Sales Model – built a sales model to scenario COS, resource, and productivity changes
  • Channel Analysis – reviewed the costs and productivity by channel and the ‘hidden’ costs of the channel infrastructure and management

Results

This high tech company is in the process of executing the recommendations, which leadership made an integral part of their FY14 key strategies. The President and SVP of Sales were both in support of the recommended changes and demonstrated the willingness to make bold strategic moves.

Testimonial

  • We’ve been asking for something like this for 2+ years.”  – RVP’s comment on Symmetrics Group’s work
  • “[I’ve gotten] good feedback from the SVP of Sales and the President … nice work. They asked me to send along their thank you.”  – Sponsor’s feedback to Symmetrics Group
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