Sunday, December 23, 2007

Increase revenue through Revenue Neutralizer

One of the significant challenges in IT services companies is in managing/creating a healthy competition among the Sales/ Account Mgt. / Delivery teams. Often times there will be struggle between these teams in positioning themselves at a client site. Since all the three teams would want to take credit for the business that comes out of the client it is important for the organization to see through this challenge and create a structure that doesn't create an internal clash. This is more prominent in mature clients as the significance of sales and account mgt. functions play lesser role compared to delivery. Problem gets more compounded if your organization has several horizontal & vertical heads competing at a client site. Since each individual has targets to meet and their incentives are derived from top line and bottom line this is a big big challenge for organization to go after. If you don't address this properly your employees will be spending more time between them than solving client problems. It is not hard for the client to realize this situation.

My point is that organizations should have a new function (Revenue Neutralizer) which is a combination of HR & Finance, managing, identifying, streamlining such issues with multiple heads involved in a single client. This person is a neutral individual who has to see possible conflicts in the organization and bring the individuals together and work out an arrangement. Benefit you get out of this roles

  • Reduces/ Eliminates internal fight in the organization
  • Prevents wrong message to the client from different groups
  • Diverts full attention to client problems
  • Brings ownership & accountability to one team
  • Reduces internal cost as the incentive is paid to only one group

I am thinking that the result of this will create 5-10% more top line as there is more energy spent on the client than internal fights.

No comments: