Sales White Paper: Sales Considerations During Mergers


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As the pace of business continues to accelerate, strategic combinations have become the weapon of choice for gaining market share, expanding product lines, garnering operational and financial efficiencies, and ultimately delivering increased shareholder value. However, the challenge lies not in these merger deals themselves, but in the post-deal operational execution, since that's where their value is actually created.

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Sales White Paper: Sales Considerations During Mergers

  1. 1. SalesConsiderationsDuring MergersWHITE PAPER
  2. 2. Sell Smarter. Manage Better.Sales Considerations During Mergers INTRODUCTION As the pace of business continues to accelerate, Nowhere is this execution pressure felt more than in strategic combinations have become the weapon of the combined sales organization once two companies choice for gaining market share, expanding product have been put together. This is due to the fact that lines, garnering operational and financial efficiencies, the sales team is where the three primary operational and ultimately delivering increased shareholder value. objectives of any merger come together most However, the challenge lies not in these merger deals strikingly: themselves, but in the post-deal operational execution, • Revenue Synergies since that’s where their value is actually created. • Cost Synergies • Cultural Compatibility Unfortunately, with an overall failure rate of between 50% and 70%, post-deal integration is not only where Organizations that deliver well on the above the value is created, but also where the failure occurs. objectives are the ones that are the stuff of business Everything is under a microscope, and the scrutiny is legend, particularly when the further challenges of further compounded when public companies have to globalization and economic turbulence are added answer to Wall Street and industry press. to the mix. It is in exactly this environment that the application of sales methodology, process, and technology reaps its biggest benefits.REVENUE SYNERGIESThe most important thing to demonstrate post-merger is that Look at the impact that can be made by having at least 50% ofrevenue synergies promised during merger announcements your sales teams using a leading sales methodology like TAS,can be made a reality. The execution challenge here lies in shown in the figure below. These gains in sales efficiency andthe need to get sales teams from two organizations selling reduced turnover can help improve revenue performanceefficiently with an expanded product or services set. And and make the revenue synergies demanded by stakeholdersthat’s where having a strong sales methodology is key. a reality.Sales methodology provides the insight and skills that sales 70%teams need, especially in times of change. Rather than hopethat sales people understand how to approach accounts to 60%deliver the new message and excitement of new productand services, you can have confidence that they’re working 50%strategically, qualifying opportunities correctly, understanding 40%the ever-changing political landscape of their clients andprospects, and driving to close as quickly and efficiently as 30%possible. 20%As proof of this need, consider that only half the companies 10%in a TAS Index survey had 50% or more of their salespeople achieving quota. This deficiency and others can 0%be significantly improved by the application of sales <50% More than 50% More than 25% More than 50% More than 50% of sales force sales force opportunities proposalsmethodology, which boosts quota achievement, reduces >50% achieved quota turnover result in a sale result in a saleturnover, and increases the close rate of deals in the pipeline. Figure 1: Benefits of Sales MethodologyShare this White Paper! Copyright © The TAS Group. All rights reserved. 1
  3. 3. Sell Smarter. Manage Better.Moreover, using technology to reinforce methodologyadoption and usage is an important factor in driving post- No sales effectiveness solution The TAS Effect Methodology, Process, Integrated with CRMmerger revenue. It’s not just about the ROI on your CRMinvestment; it’s really about getting the revenue productivity 70%out of your teams. Our research shows that CRM usage 60% +88%improves from a dismal 33% without methodologyintegration, to 65% with a proven and well integrated 50% +155%methodology. Likewise, integration improves the adoption 40%and use of the methodology itself, which moves from 14% to38% as a result. 30% +20% 20%COST SYNERGIES -33% 10%Right behind the intense revenue pressure that accompanies 0%mergers is the need to reduce expenses through cost Quota Salesforce Qualified Salessynergies. This typically means one thing: get more done Achievement Turnover Opportunity Proposal Close Rate Close Ratewith fewer resources. Eliminating redundancies in thecombined organization often results in reduced support staff, Figure 2: Impact of Methodology, Process and CRMand sometimes means fewer sales people as well. Addedpressure comes from the inevitable voluntary turnoverthat accompanies most mergers. And yet, this leaner salesorganization is expected to produce the revenue synergies And while the benefits of sales methodology and processdiscussed above. How can this be accomplished? In addition are well-documented, their ongoing reinforcement is crucialto ensuring that your team has the methodology skills if the full ROI is to be achieved. Obviously, managementneeded to tackle a more involved sale, having a rigorous sales buy-in for these initiatives is a key to their success, but evenprocess moves from nice-to-have to absolutely critical. with management fully behind their implementation, sales methodology and process have a dismal record withoutWithout a defined and measured sales process in place, the added support of technology. In fact, 87% of skillsexisting sales talent will be slower to move through the sales learned during training are lost within the first month,cycle for additional products and services that are now part so reinforcement is necessary if the training is to have aof their portfolio. Moreover, management will have a difficult meaningful impact.time accurately forecasting their performance during thiscritical time of scrutiny by the stakeholders that approved themerger transaction. Equally daunting, how do you accuratelymeasure your pipeline to ensure that sufficient business isavailable to make your goals?The answer lies in a well defined sales process, supported bystrong technology to continuously reinforce and measure thatprocess. How do we know this? The TAS Index survey showsthe dramatic improvement that the combination of salesmethodology, process, and integration with CRM can provide:88% improvement in quota achievement, 33% reduction insales force turnover, a 20% increase in opportunity close rate,and a staggering 155% increase in sales proposal close rate(see Figure 2).Share this White Paper! Copyright © The TAS Group. All rights reserved. 2
  4. 4. Sell Smarter. Manage Better.Achieving reinforcement means more than beating on Having a proven, integrated methodology helps solve this,people to use what they’ve learned. Instead, using elearning and has the added benefit of enforcing the sales process ascapabilities and integrating sales methodology and process well. Combined with the right capabilities, this means yourinto your CRM system are a proven way to not only reinforce sales velocity not only improves, but enables you to finallyconcepts, but get the ongoing measurement that allows measure your pipeline and forecast objectively. Rather thanmanagement to offer focused coaching to their sales teams relying solely on armies of analysts with spreadsheets and a(see Figure 3). For example, the Dealmaker Virtual Learning healthy dose of intuition, solutions like Dealmaker PredictiveSystem is an on-demand video learning system that allows Sales Analytics become an alternative. It will not only give yousales people to refresh themselves on key methodology the impartial numbers, but provide insight and coaching hintsconcepts on a just-in-time basis, watching small, highly that allow you to drill down from your newly accurate forecastconcentrated segments to help them through a particular and pipeline into individual deals and sales people, so you canelement of a deal. apply coaching where it matters most. This capability is also invaluable when it comes to reporting Blended Learning and Application to senior management and the board on performance for Sustained Sales Effectiveness against the revenue and expense objectives laid out for a merger. Imagine the ability to present your forecast and Automated Reinforcement Events pipeline analysis, and sales cycle performance, all without having to spend a single minute with a spreadsheet or analyst (see Figure 4). Only the combination of an integrated sales SALES EFFECTIVENESS methodology, sales process, and technology integration with Area of Missed Opportunity your CRM system can give you these results. Loss of Sustained Value Traditional Learning Effectiveness Curve Blended Learning Online Main Effectiveness Curve Classroom Classroom Intro Event TIME TIMEFigure 3: Impact of Elearning on RetentionLikewise, your sales process is at risk of rapid degradationwithout the support of technology. For years, the answer to Figure 4: Dealmaker Predictive Sales Analyticsthis has been CRM but as noted earlier, adoption has beena problem.Share this White Paper! Copyright © The TAS Group. All rights reserved. 3
  5. 5. Sell Smarter. Manage Better.CULTURAL COMPATIBILITYThe other important objective in any merger is to integrate Having good performance measurement and coaching toolsthe cultures of the two companies being combined, and this also cuts through the bluster that can creep in during theseis a particular challenge in sales. There is inevitable territory merger transitions. We’ve all seen this situation where fear ofoverlap, and often there is also overlap in the product mix, change leads sales people to overstate or even manufactureleading to natural tension between sales teams. In some performance claims. Using an unbiased system to helpcases, there is outright hostility when former marketplace adjudicate these cases, provide coaching, and as necessarycompetitors are merged. aid management in making organizational change decisions is something that our customers have told us they rely onWhile there is no substitute for good management in these during times when emotions run high. And where you havesituations, having a common sales methodology and process strong performers that are at risk of resigning and headinghas proven very helpful with a number of our customers. for greener pastures, it’s important to note that in addition toThe simple reason is that the standardized approach, making them more effective, the use and reinforcement ofcommon language and steps, and the use of automation methodology can reduce sales force turnover by 33%.that methodology, process, and technology provide helps tobridge cultural, organizational and time zone gaps. SUMMARY Mergers offer tremendous opportunity with a high ingredient then becomes management’s willingness degree of difficulty. Sales organizations have to to engage in and truly embrace an initiative that makes perform to deliver on higher revenue expectations these benefits a reality in their organization. The TAS with reduced resources, and do so while creating a Group stands ready to be a partner in these initiatives, positive combined culture. and help deliver on the promise that a merger in your company holds. The positive impact that a proven sales methodology, process, and technology can have on these challenges If you wish to find out more, please contact us at is well understood and documented. The missing this White Paper! Copyright © The TAS Group. All rights reserved. 4
  6. 6. ABOUT THE TAS GROUP The TAS Group helps sales professionals sell smarter and manage better. Through a unique combination of deep salesmethodologies and intelligent software applications, customers achieve measureable results including increases in winrates, deal sizes and qualified opportunities, as well as decreases in sales cycle length. According to the Aberdeen Group,customers of The TAS Group realize 21 percent greater attainment of sales quotas.Dealmaker® intelligent software is the engine driving revenue growth and sustained adoption of improved salespractices.The TAS Group has helped more than 850,000 sales professionals in more than 65 countries, from small privatecompanies to market leaders. For more information visit and read the dealmaker365 blogat DEALMAKERDealmaker software from The TAS Group delivers real-time opportunity and account management, intelligentdeal coaching, accurate sales forecasts, smart playbooks, self-paced learning, and predictive analytics, resulting inmeasurable sales growth.Dealmaker can be delivered as a standalone application or can be integrated with Salesforce CRM, Microsoft DynamicsCRM, Oracle CRM On Demand, Oracle’s Siebel CRM and SAP CRM, or with any third party software application throughthe Dealmaker API. For more information visit © The TAS Group. All rights reserved. This briefing is for customer use only and no usage rights are conveyed. Nothing herein may be reproduced in any form without written permission of The TAS Group.