Too often someone else is dictating the direction and growth of your business. This includes your technical team, your sales force, and even your vendors. The technical teams may want to use a “good enough” solution where they know all the work-around but it may provide low margins. Your sales teams may focus on the solutions that make them the most commission. Worse, you may have a vendor that provides zero or limited pricing and deployment options. In this session you will discover some ways to lead your entire team to increase SaaS sales providing the growth and direction you want in your business, regardless of your business model.
http://www.ingrammicrocloud.com
My INSURER PTE LTD - Insurtech Innovation Award 2024
Axcient: Don't Get Caught With Your Saas Down
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Don’t Get Caught With Your SaaS Down
Mark Swendsen
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• Mark Swendsen, VP of Sales at Axcient
Introduction
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“Why some companies thrive in
uncertainty, even chaos, and
others do not?”
Jim Collins
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“Why some companies are
caught with their pants down
while others laugh?”
Mark Swendsen
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Jim Collins book “Great By Choice” provides a great
framework for our conversation today.
Yes, most of the ideas here were taken from his book.
We will talk about some of the key concepts in the book
and draw parallels to your business and our industry.
Get a copy of the book by the end of this presentation.
Copyright Notice
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It is not about…
Being able to predict the future
Taking risks
Making bold moves
Being more creative
Innovating more
Making fast decisions
Acting fast
Being lucky
Becoming Successful And Keeping Ahead
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The Framework To Become Great
FANATICAL
DISCIPLINE
PRODUCTIVE
PARANOIA
EMPIRICAL
CREATIVITY
LEVEL 5
AMBITION
20 Mile March
Fire Bullets, Then
CannonballsLeading Above The
Death Line
Incredibly ambitious, but for the cause of
the company not themselves
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• Three Stories
− The Race to the South Pole
− Southwest Airlines
− Axcient
• Key Questions to Ask Yourself
• Applying the Framework to Your Business
• Open Discussion
• Book Drawing
Agenda
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The Race to the South Pole
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Preparation and Fanatical Discipline
Amundsen Scott
• Started from a place many considered
unstable, but closer to his objective
• Built buffer for unforeseen events
(placed 20 flags around the supply
depots, market his path)
• Team of 5 people
• Carried 3 tons of supplies
• Used dogs
• Walked in 15 to 20 mile max
increments
• Started from a known place previously
mapped and documented
• Ran extremely lean counting on
accuracy of his plan (only 1 flag per
depot, not marking his path)
• Team of 17 people
• Carried one ton of supplies
• Used ponies and motor sledges
• Tried to make as much progress as
possible
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Reaching The Pole
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Elements Required for a “20 Mile March”
• Performance markers
• Self-imposed constraints
• Tailored to the enterprise and its environment
• Lies within your control to achieve
• Goldilocks time frame
• Designed & self0imnposed by the enterprise, not outside
• Must be achieve with great consistency
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Southwest Airlines
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Southwest Airlines
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The Industry
• Number of flights cut by 20%
• Employees laid off, or furlough
• Delivery of new aircraft
cancelled or deferred
Southwest Airlines
• No flights were cut
• No employees laid off, temporary
freeze in hiring
• Negotiated revised delivery
schedule of 132 new aircraft
September 11 Attacks And The Airline Industry
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Fleet Configuration
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• Didn’t innovate, they copied PSA
• Faced major obstacles since its inception
• Instead of rapidly expanding, decided to take a careful
approach to opening new routes
• Standardized on one type of airplane
• Created a model that worked and stuck with it, ensuring it
would work at every route and that it would be profitable
Southwest Airlines
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Axcient
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Axcient Company Overview
One of the Fastest Growing
Companies in Silicon Valley
Headquartered in Mountain View, CA
$85M+ in Funding
Channel Only
Over 4,000 Customers
Founded in 2007
2007 2008 2009 2010 2011 2012 2013 2014
3,120%+ Revenue Growth
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Backup Replication Dedupe
Vs.
Business
Continuity
Archiving
vs.
Disaster
Recovery
The World’s First Business Recovery Cloud
25. 000000_25
Our initial focus was on smaller
accounts, but we started getting to
larger and larger deals.
As we won larger deals, the data
requirements changed. 1TB used
to be big for us 3 years ago, now
10TB is normal.
26. 000000_26
In 2012, we measured support
success by case backlog volume.
Despite hitting our targets, our
support rating was only 7 out of 10.
In 2013 we changed our
measurement to time to answer
phone, case update frequency, and
time to resolution. Now have a
partner rating of 9 out of 10.
27. 000000_27
Early in our history we had an
option to OEM different
technologies to get our product
to market faster.
We decided to take the longer,
more difficult road and build
everything ourselves.
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• What is your ultimate goal? Where do you see your
company 5, 10 years from now?
• What will your performance markers be?
− Profitability, utilization rate, number of clients, etc?
• Which constraints make sense for your business?
− Total capacity per client, number of vendors supported, cities
served, etc?
Key Questions To Ask Yourself
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• Are you willing to embrace the behaviors that will lead your
company to become great?
• Where should you place big bets, based on early
experimentation?
• Are you constantly monitoring the market and thinking
about ways in which your company can be disrupted?
Key Questions To Ask Yourself
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1. Value-based pricing
2. Charging more to support larger clients
3. Bundling services
4. Clear path for existing customers to adopt additional
offerings
5. Leveraging automation to maximize efficiencies
6. Focus on managed services sales/marketing, less on
resale
Characteristics Of Fast Growing MSPs
Source: Kaseya 2014 MSP Pricing Survey
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The Framework
FANATICAL
DISCIPLINE
PRODUCTIVE
PARANOIA
EMPIRICAL
CREATIVITY
LEVEL 5
AMBITION
20 Mile March
Fire Bullets, Then
CannonballsLeading Above The
Death Line
Incredibly ambitious, but for the cause of
the company not themselves
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Editor's Notes
On 20 October 1911, the Norwegian explorer Roald Amundsen left his Whales Bay base accompanied by 4 men, 4 sledges and 86 huskies. They were intending to be the first to get to the South Pole. They had chosen to travel light: carpenters had spent several months planing away the slightest protruding ends of wood on the sledges; on the eve of his departure, the Norwegian decided to leave with only four men instead of the six that had been envisaged.
On 11 November of the same year, the British explorer Robert Falcon Scott set out in turn in conquest of the South Pole from his Cape Evans base (on other side of the Ross Ice Shelf): he on the other hand had chosen a heavy trek with a whole stable of ponies and some sledges, which, at the beginning of the voyage, weighed more than 300 kilos each. When it left the base, it was a 50-kilometre-long convoy that got under way towards the North. At that time, the Englishman didn’t know that Amundsen already left with the same objective as he!
But the story actually begins a month or so earlier, in September, 1911: Tormented by the prospect that Scott might beat him, Amundsen had jumped the gun, starting before the arrival of polar springtime and manageable weather. The result was the death of valuable dogs and frostbite on the feet of his men that would require a month to heal. He decided to return. He then left again in October, only a few days before Scott to try to reach the South Pole.
What happened next is an amazing story. What you see here is a map showing the route the two expeditions took. On the left side, in blue, is Scott’s route. He used as starting point the same location Shakleton used in his expedition back in 1908 and followed a very similar path that Shakleton had documented. Amundsen, though, started off from a point that many people considered a ‘bad’ location saying it was unstable and his route had many unkowns.
Amundsen, as I said, jumped the gun. He started earlier than he should have and had to come back. He also took a different approach than Scott: he had fewer people in his team, he carried three times more supplies than Scott, and used dogs to pull the sledges. Scott by contrast had a team of 17 (versus 5 in Amundsen’s), was carrying less supplies and decided to take ponies and motor-based sledges.
The outcome is that Amundsen reached the pole many days earlier and returned safely while Scott’s team died on their way back.
This image was taken from their annual report issued in 1971. The second story I would like to talk about, is of Southwest Airlines. This is a company that is showcased in the book and is definitely worth looking into because they exemplify many of the elements of the framework that has shown companies use to become great.
Incorporated as Air Southwest in 1967 the airline changed its name to Southwest Airlines in 1971. In their first two years of operation, the airline posted a loss and it was in such difficult financial situation that it had to sell one of four planes they had in order to meet payroll. At that time, they were operating 4 routes and continued to do so with only 3 planes. Because of the shortage in planes, they instituted a policy of “10 minute turn” in which planes had to be ready and out the gate in 10 minutes.
And you may know this, but Southwest didn’t invent the “Low Cost Carrier” model, they copied it from another airline that was operating at the time in California, PSA. They went over there to see how they did things and basically copied their manual of operations, so from the start Southwest was basically a copy of PSA operating in Texas.
Since from their start Southwest was facing difficulties. In the 60’s the airline industry was heavily regulated. Southwest wanted to operate in Texas but the three airlines operating there didn’t want more competition. Braniff, Trans Texas (later Texas International), and Continental Airlines worked to get a restraining order prohibiting the Transportation Aeronautics Commission to issue Southwest’s certificate, basically blocking them from starting business.
The legal battle between Southwest and the other airlines lasted almost 3 years! Finally on June 16, 1971 the Civil Aeronautics Board throws away the complaint filed against Southwest. But within hours, the lawyers of the airlines get a restraining order barring Southwest from beginning service. Southwest then pleads its case to the supreme court who overrules the injunction, allowing Southwest now to finally start business.
Then in February 1973 Braniff decided to lower fares from DAL to HOU to $13.00. Southwest charged $26 at the time. So Southwest countered by either offering the same fare, or a bottle of Chivas Regal, Smirnoff or Crown Royal. The result, SWA won the battle...Businessmen were taking the free liquor and paying the full $26.00 fare. They could write the $26 off as a "business expense" while keeping the liquor.
But what is also interesting about Southwest is that the airline faced hurdles throughout its entire life. Multiple lawsuits tried to take the airline out of business and it seemed that every year they were facing some form of new challenge either by attack from a direct competitor that decided to lower their fares or a lawsuit of some kind.
And, of course, the most trying times for Southwest and the airline industry in general were the days following the Sept 11 attacks. But the way Southwest responded was very different from most other airlines. Instead of cutting flights, laying off workers or cancelling their orders of new planes they did just the opposite. And the result? Southwest was one of a very few list of airlines that posted a profit that year. In fact, Southwest had posted a profit for the past 40 years, and is the only airline to have done so in the US. So what are some of the strategies that they use?
Here you have a sample that is very telling. Look at how many different types of planes companies such as Unite, Delta and American have, versus Southwest. Southwest decided since the beginning to keep things simple and invested in one type of plane, the 737. They fly only four types of 737, which allows them to save money on maintenance, ordering parts, and training their pilots.
Also, Southwest decided to hold back year after year, and grow their routes slowly and carefully instead of expanding too fast. The other interesting thing about Southwest I that they have this policy of demanding a profit every year. They are religious about that, and so everything they do has to be tied to the company profitability, but – and this is where Southwest is also different from other profit-seeking airlines – is that they do this while keeping a very strong corporate culture that puts the employees and their customers first.