Stories and lessons from the inside : Navigating strategic renewal and SaaS GTM challenges

 

Teo Wargo / WIREIMAGE / Getty Images / MTV

A few years ago, SAP made a major acquisition in the SaaS world and it took over a prominent SaaS business in the customer relationship space. Recognized as a leader by industry analysts and generating more than a hundred million dollars in annually recurring revenues, the acquisition initially seemed like a success. However, a little more than a year later the business went into a downturn with declining revenues and increasing customer churn.

As a portfolio adviser to the executive board of the acquirer, I was responsible for addressing these issues.

🔍🔍

The core issue seemed clear and yet was complex to solve: a mismatch between the business' unique go-to-market strategy and SAP's traditional sales approach. This was further complicated by having the installed base on a legacy tech stack and new customers on the modern go-to architecture which muddled the customer value proposition and slowed migration of the installed base. The sales misalignment combined wavering product focus and leadership transitions were the root causes of the deteriorating performance.

There were serious discussions about exiting the entire business and selling.

💡💡💡

Faced with these challenges, I initiated a strategic refresh collaborating with stakeholders at both the business and corporate level. The result was a compelling case for retaining and rejuvenating the business rather than a divestiture. Central to this strategy was boosting the sales force, investing in customer engagement, and initiating cross-sell opportunities. The plan also required commitment and investment in the product to secure renewals and unlock pipeline.

The comprehensive end to end action plan was signed off and supported by the executive leadership.

🔑🔑🔑🔑

The implementation of this plan, backed by senior leadership and funding, marked a turning point. And while the proposed changes took several quarters to have a material top line impact, there now was clear executive ownership on the go-to-market side across all sales channels, and the executive attention and support revitalized the whole team.

The journey stressed the importance of inclusive stakeholder management, executive sponsorship and assigning clear ownership and empowerment in complex business environments.

This article was first published on LinkedIn on March 13, 2024