Old Hand or New Blood: A Case Analysis

Nikesh Agarwal (12PGP030) Rajat Katiyar (12PGP034) Rishiraj Singh (12PGP035) Sathiyasundaram (12PGP038) Suchishmita Roy (12PGP044) Tejit Mithal (12PGP046)

Agenda
Summary

Issues (problematic scenarios)

Possible alternative solutions SW analysis for each alternative Proposed solution

Summary
Fusilier Technologies is in disarray.

Company VP Sales (Hartley) is leaving, CEO (MacLeod) has to select VP Sales from two very different candidates:
A company veteran (Gonzalez), currently Director Sales, who has excelled in the company in her stint spanning over multiple decades. A brash outsider (Shapiro), considered a mover and shaker, who has experience selling solutions and will shake things in company but doesnt know the industry

Lost a large and loyal client recently questioning the capabilities of the existing Director Sales . Sales flat for five years.

Summary Contd ..
Its strategy to sell customized business solutions instead of product performance has stalled. Faced two major challenges:
building relationships with executives beyond the IT department. disparate product and service units work seamlessly with each other and sales force.

Company has to revamp incentives, training, and processes for the sales force. Compensation based on individual results so far, training based on product features and cost performance advantages.

Focus now on customer business issues and delivering a portfolio of products and services of Fusilier and Partners.
Need to collaborate with new consulting unit, Professional Services, incepted to jump start the solution centric approach.

Issues
Mark Hartley, VP of Sales decides to retire deciding on the recruitment of the successor. Choosing between promoting insider Gonzalez OR selecting Shapiro, an outsider, as next VP of sales Choose between two strategies sell solutions OR product performance Relationship development with executives beyond the IT department These issues boil down to work out the succession plan of current VP Sales

Alternatives
Promote Gonzalez as next VP of Sales

Hire Shapiro as next VP of Sales

Hire Shapiro for Enterprise Sales and Services organization(made up primarily of people from the new Professional Services organization) AND assign Gonzalez for Product Sales and Services organization

Recruit a new candidate to replace Mark Hartley as VP Sales

SW Analysis
Promote Gonzalez as next VP of Sales
Strength Good work in Sales promoted her quickly to manager post Weakness Doubt whether she could make tough choices

Multiple memorable team victories under She has good relations with ONLY her guidance (now legends) clients IT department managers
Good in closing crucial deals on her own People working with her loved her Strict in not accepting excuses when quarterly goal is not met Some of important customers are in good relations with her Good standing with company brass including CEO Doubt whether she is a good strategist

SW Analysis
Hire Shapiro as VP of Sales
Strength Experience working across organizational Brash behavior boundaries Versatile experience in marketing, strategic M&A, post merger integration, International sales Superb analytical mind and Can shake things up Variety of positions at several technology companies Understands the requirements of the integrated solutions very well Never worked in similar industry Weakness

Switches companies frequently Always try to overhaul things Offended CEO in first meeting, difficult to work with for a major strategic shift

SW Analysis
Hire Shapiro for Enterprise Sales and Services organization AND assign Gonzalez for Product Sales and Services organization Strength Internal support becomes stronger Long time customer relationships A well-thought-out strategy for growth, a new organizational model, and the right leadership team Variety of positions at several technology companies will help Existing contacts of Gonzalez can be leveraged till transition is made Weakness Shapiro don't have experience in this business Switches companies frequently, new initiative might be left in between Need to form new department

Expenses of the company increases

SW Analysis
Search a new candidate to succeed Mark Hartley
Strength Reassess the position of VP, empower with EVP with a refined strategic focus Gives time to reassess and segmentalize its market for solutions or products focus Gonzalez stays and her expertise and current contacts can be leveraged CEO will work closely with the new executive team Weakness Time Consuming Might face opposition from board in light of recent customer loss MacLeod still needs to consider revamping the power structure in sales (price flexibility)

Best Alternative
Promote Gonzalez as next VP of Sales because
Proven capability. MacLeod can work closely with Gonzalez to implement the tough decisions. Increase employee morale. Learning from current client loss will help align priorities for other and future clients. Promotion would increase her confidence and bring new enthusiasm in her. Many existing clients are her contacts, mass exodus in case another candidate replaces her.

Thank You