Slides from my SaaStock USA presentation on connecting the c-suite to the ground truth. Discusses both why and how you can do so. How includes [1] deploying CI, [2] doing third-party win/loss, and [3] doing an annual proprietary market study.
Kellogg SaaStock C-Suite and Ground Truth^LLLLJ r1.5.pdf
1. How To Connect
Your C-Suite To
The Ground Truth
Dave Kellogg
Independent Director, Jiminny*
EIR, Balderton Capital
Author, Kellblog
* See Kellblog FAQ or LinkedIn for other affiliations
All Contents, Copyright Š Dave Kellogg 2023, All Rights Reserved.
Revision 1.5
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4. Rumelt on
Strategy
âJohnâs comment was something I had never
heard said explicitly, but it was instantly and
obviously correct. A great deal of strategy
work is trying to figure out what is going on.
Not just deciding what to do, but the more
fundamental problem of comprehending the
situation.â
-- Rumelt, Richard. Good Strategy Bad
Strategy (p. 78)
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5. Why Does Knowing Ground Truth Matter?
⢠You need to understand execution to validate strategy
⢠How do you know if youâre in Box 2 or 3?
⢠Participants bring biases to the conversation
⢠Management wants to diagnose Box 2
⢠Board wants to diagnose Box 3
⢠Founder wants to know if youâre in Box 1 or 3
⢠Edge of hockey stick or simply âbeatingâ (nautical)?
⢠Groupthink develops quickly about the reasons
behind problems
⢠âNo oneâs ever heard of us.â
⢠âThey donât see value.â
⢠âThey say we all look the same.â
Box 3
Kinda working
Box 1
Not working
Box 4
Working
Box 2
Kinda working
Execution
Weak
Strong
Strategy
Weak
Strong
See: https://kellblog.com/2022/01/03/why-execution-matters/ 5
7. The Problem
⢠The C-suite can quickly lose touch with the ground truth
⢠You canât fix execution problems that you donât know about
⢠You canât assess strategy without understanding execution
⢠Can start at surprisingly small scale and gets worse as you get bigger
⢠Why?
⢠Messaging: see the blueprint, not the house
⢠Tactics: see the playbook, not the play
⢠Losses: hear the conventional wisdom, not the horseâs mouth
⢠Testing: see the certification scores, not the exams
⢠Demos: see the webinar, not the everyday
⢠Sales: see closing calls; not the discovery ones
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8. Aside: If You Never Hear Stories Like These, Is
Your Leadership Team Being Transparent?
⢠âJesus Phil, this is the third time Iâve asked, just tell me the effing pricing.â
⢠âYour seller called five minutes before a big meeting and left me a voicemail saying that your company
isnât interested in our business.â
⢠âOur seller flew to London, spent 3 days banging out a detailed terms sheet, only to later discover that
heâd painfully negotiated the price, but not the currency ($ vs. ÂŁ).â
⢠âThe CFO arrived for the big demo but left after 12 minutes because our seller was still presenting
PowerPoints and not showing the software.â
⢠âAll they talked about was us. All you talked about was them.â
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9. Wait, Isnât CRM Reporting Supposed to Help Us
Figure Out Whatâs Going On?
And It can only analyze the people we found
and engaged with
But Caveat: requires foundation of discipline
in usage (e.g., definitions, enforcement)
Yes,
Reports and dashboards
Conversion rates, deal velocity, pipeline
progression, stage leakage, win rates, âŚ
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11. Three Recommendations to Connect Your
C-Suite to the Ground Truth
1
Deploy conversation
intelligence software
⢠Ground truth of messaging
and sales execution
2
Do third-party win/loss
reporting
⢠Ground truth of deals
3
Run annual or inflection-driven
market research
⢠Ground truth of the market
⢠Triangulate against CRM reporting
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12. 1. Deploy Conversation Intelligence* Software
⢠Use software to get insights from customer conversations
⢠Call recording, transcription, analytics, coaching, forecasting, and more
⢠Example vendors: Gong, Jiminny**
⢠I recommend this to literally every startup I work with for the past 5+ years
⢠Connects the C-suite to sales reality
⢠Hear the messaging as delivered, hear questions as asked, see tactics and responses,
measure talk/listen ratios, see contact frequency and tone, set alerts (e.g., pricing,
competition), improve forecasting, deliver data-driven coaching
⢠Ask for clips to support assertions
⢠Group listening sessions to keep everyone in touch
* Not to be confused with conversational AI or analytics which more describes an interaction or interface style
** Iâm on the board of Jiminny and see it as an inexpensive and well-designed alternative to Gong (aka, in British English, a cheap-and-cheerful Gong)
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14. Layers of Conversation Intelligence Value
Transformation
Process &
Methodology
Analysis & Alerting
Capture Call library, coaching, collaboration
Talk/listen, alerts, tone, topics, frequency, âŚ
Process, frameworks, feedback
Business goals, metrics, and impact
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15. 2. Do Third-Party Win/Loss Reporting
⢠Hire a third party to interview contacts at
key wins and losses
⢠Example vendors: Velociti Partners, Growth
Velocity
⢠Advantages
⢠Cuts through the âniceâ factor
⢠Eliminates management spin
⢠Second opinion on the ârealâ reasons behind
decisions
⢠Triangulate against CRM reporting on win
rates and loss reasons
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16. 3. Run an Annual* Proprietary Market Study
⢠Hire a firm to run a proprietary market research study
⢠Example table of contents
⢠Market maturity and velocity
⢠Awareness and lead generation
⢠Buyer journey
⢠Value proposition / purchase triggers
⢠Roles of partners and technology
⢠Competitive position
⢠Segmentation / account profiles
⢠Pricing / packaging
⢠Revenue potential
⢠Example vendors: Topline Strategy, King Brown Partners
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* Or an event- or inflection-driven study, as indicated.
17. How to Make the Most of Your Study
⢠Hire an experienced agency
⢠Specialists in SaaS working both for vendors and VC/PE community
⢠Make and maintain a list of questions to answer --- every time you hear:
⢠An assertion thatâs an opinion stated as fact or a question youâd love to know the answer
⢠Examples
⢠âNobody has heard of us compared to our archrivalâ (awareness/consideration)
⢠âBuyers are tired of hearing about data cultureâ (buyer business priorities)
⢠âPeople donât know you can solve data governance with usâ (solution awareness)
⢠âThere arenât enough deals coming to marketâ (market velocity)
⢠âIf we just had more at-bats weâd make the numbersâ (velocity, funnel conversion)
⢠âPeople donât care about the turbo-schmumbleatorâ (selection criteria)
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See: https://kellblog.com/2021/05/15/navel-gazing-market-research-and-the-hypothesis-file/
18. Conclusion
⢠Whoâd have thought the simple question, âwhatâs going on?â could
pack so much punch?
⢠To mastering execution
⢠To driving strategy
⢠To answer that question, we must connect the C-suite to the ground
truth
⢠To do that, I have three recommendations
⢠Deploy conversation intelligence software
⢠Do third-party win/loss analysis
⢠Run an annual or event-driven market research study
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