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Increase sales efficiency & effectiveness with the right organizational design to drive growth.
The composition (people) and structure (organization) of a company’s salesforce, should be a direct enabler of their overall strategy, go-to-market plan and way of selling.
But for many sales leaders the challenge is that while their strategy, GTM plans & required way of selling evolves over time, their organizational blueprint for the salesforce often remains unchanged, creating a disconnect between how they need to sell and how they are set up to do so.
To ensure the way a company needs to sell is enabled by how they organize sales, sales leaders need to continuously identify potential disconnects between the two today and design an organization better fit for the world they want to move into.
Sales organization design is the process of deciding how to best organize sales resources around a company’s target customer segments, at three levels.
What kind of roles do we need to most effectively drive sales and how should these be organized into teams covering different target customer segments?
How do we group sales teams together into sales units, where local sales strategy and resource allocation decisions are made, that guides front-line action?
How do we group sales units together into sales divisions, where go-to-market strategy is made, that guides sales unit strategy & resource allocation decisions?
In its essence sales organization design is about deciding what type of specialization is most suitable to create sales teams around, and how to group these together into sales units and divisions, with 5 typical types to choose from as the dominant logic for organizing sales.
Geographical sales teams: Understand what is happening in the geographic market of the target customer, is able to teach them about the current trends in these markets and able to meet with customers face-to-face (E.g. North, South, East & West german sales teams)
Industry sales teams: Sales teams that have expertise in the industry of the target customer and able to teach them about current trends (E.g. pharma, FMCG, oil and gas sales teams).
Value chain specialized sales teams: Sales teams that have expertise in specific parts of the industry or company value chain (sourcing, procurement, logistics, production, sales, finance, etc.)
Business type specialized sales teams: Sales teams that have expertise in different business types along a business lifecycle (start-up, scale-up, SME, large enterprise, global enterprise, etc.).
Customer journey specialization: The team has expertise with customers at different points along their development journey with vendors’ companies (potential customer, new customer, lost customer, loyal customer, etc.)
Our latest thinking, perspectives & recommendations from Kvadrant Consulting.