OpportunityOur client is the US subsidiary of a leading, German-based manufacturer of special industrial automation components and data acquisition systems. They had established an initial foothold in the US market with a rudimentary support organization that provided local technical support, customer service and some basic, though primarily reactive sales activities, servicing almost exclusively the US operations of its many European customers. The incremental growth over several years and the increasing popularity of its products in the US convinced the parent organization in Germany to step up its commitment in the US by expanding its resources substantially and transition into a mode of proactive market penetration.
Action
TransAdvantage was retained to assist in the assessment, restructuring and implementation of appropriate strategy elements and the acquisition of the required resources based on our intrinsic familiarity with both the market conditions and the client’s performance program. We engaged in a on-going consulting relationship.
Results
Following comprehensive market research and various feasibility studies (which would be subject to a separate case study), we assisted the client in the determination of the strategic direction, the development of a solid business plan, and most importantly, the structure of the suggested sales organization.
While retaining most of the existing staff and integrating them into a new structure, it was considered most important to attract the RIGHT leadership, and prepare the future growth path of the intended sales organization on – initially – a regional, but ultimately, a national basis. Key challenge was not necessarily to find the most qualified leader (as President & CEO) who would match the demanding profile we mutually established with the client (several candidates were identified in due course), but our ability to attract the desired individual to leave a lucrative position with a well established US player in a related field. In addition, we concurred with the client’s desire to retain the corporate location in a medium sized mid-western industrial city, that is perceived as distinctly less attractive than the major metropolitan area where the candidate resided at the time.
We ultimately succeeded in convincing the preferred candidate to accept the position – not by means of an excessive compensation package, but through a comprehensive and convincing identification of the long-range rewards that emanated from a successfully executed pioneering work and the prospect of building a highly independent, yet strongly supported entity in the US from scratch. Our passionate advocacy for the unique value proposition of the company’s performance program added to the attraction.
There are many intrinsic aspects to this case that would best be described in person. Suffice to say that the “marriage” was successful (though it required reasonable and intelligent compromises on both sides), and the company has been growing significantly above average over the past few years, satisfying the expectation of both parties to the fullest extend. The CEO is still on board today and has built an impressive and highly effective sales organization with our continuous support.
We would be glad to share details of our work without identifying the client’s name or specifics which would allow identification of the company or its competitors.
