Are You Spending Too Much on Sales?

Written by

Jim Corey, Blue Ridge Partners’ Managing Partner, was interviewed by Private Equity International’s editors for their Operational Excellence Supplement published this month. Corey talked about how to cut out waste in sales and why CEOs often lack the experience to step in. He pointed out that sales leaders are too busy trying to hit their revenue targets to focus on cost inefficiencies. Sales organizations can accumulate layers of economic inefficiencies that begin to cost a material amount of money. These inefficiencies are seen but accepted. Sales organisations are built to optimise profitable revenue growth. They are not built to optimise economic efficiencies. Sales leaders are so focused on making their targets that they tolerate lower levels of performance.They think some revenue from a weak performer is better than none [from an open vacancy]. However, we often find by squeezing out inefficiencies there is the potential for 10-25 percent savings and reinvestment. In that range they become material.

The complete article can be read here.

Categories - Commercial Effectiveness