Jess Westerly Case Study

Based upon your reading and analysis of the Jess Westerly case, what change strategy would you have used if you were Jess Westerly? For Example, would you have used a top-down rapid strategy, a high-involvement-staged strategy? Why? What would be your implementation plan? For example, what would you do first? How would you time phase it? What are the critical (pivotal) actions that must succeed? Based upon my reading and analysis of the Jess Westerly case study, I would have implemented a high-involvement, phased change strategy. Changing the software-as-a-service (SaaS) sales approach from targeting of small and medium business to large organizations is a strategic change for Kauflauf. In order for changes to be made, it is necessary to implement through phases. Key elements are leadership engagement and compensation design. In order to inform my approach with industry best practices, I interviewed a Saas sales leader. To illustrate and frame my approach, I will use Kurt Lewin’s three-phase model for change. In Phase one, we must unfreeze the system. During the first three months, the CEO of Kauflauf must champion the change to pursue SaaS contracts with large organizations (Sales Class 1-3 firms, $500,000+ annual revenue). Using Jess Westerly’s data affirming the opportunity for 30% growth, the CEO must communicate the organization’s change in client targeting; he must also indicate the implied crisis: only those SaaS firms that seek and earn business with Class 1-3 firms will survive and thrive. By creating a compelling need to do business differently, the CEO will create a new, more malleable state allowing the system to be amenable to change interventions (Burke, pg 124). Sponsored by the CEO, I would conduct training of Regional Sales Directors (RSD’s) on the rationale for the shift and engage them through a series of workshops in developing a shared understanding of changes across sales and other functions that will be required to enable the shift. In Phase two, movement occurs. The system will not move or change in any meaningful way unless and until an unfrozen condition has been achieved (Burke, pg. 124). During months four through 15, having been equipped with a territory-specific understanding of the rationale for the shift and having contributed to a shared institutional understanding of required changes, RSD’s would then be more eager to direct their Field Consultants (FC’s) to adjust time spent on Class 1-3 firms. As a measure of the CEO’s commitment to the shift, I would seek funding for a new bonus plan that pays bonuses for signings at Class 1-3 firms (and no incremental bonus for Levels 4-6). This period will be marked by institutional learning and changes to capabilities regarding the support, configurability and other special needs of Class 1-3 firms considering Kauflauf SaaS solutions. I would also establish an Advisory Board of “Heavy Hitters” consisting of FC’s who already focus 30% or more of their time on Class 1-3, celebrating these sales professionals by earning funding for a retreat to a high end resort for a combination of workshops to document their logic and best practices for time allocation, sending them back out into the company to serve as peer evangelists regarding the value of Class 1-3 time allocation (e.g., feature them on webinars, at roundtables, etc.). In Phase three, a refreeze must be initiated. The change that has occurred (infrastructure and motivation to support business with Class 1-3 firms) cannot be allowed to dissipate. The new setup therefore needs to be reinforced with a process in place to maintain the new system (Burke, pg 124). During months 15-18, the RSD’s will be directed by the CEO to “Stand and Deliver” a report on their team’s shift in both time invested and revenue earned from Class 1-3 firms. Knowing this task awaits should serve as inspiration for adoption. Refining the tiered bonus plan will likely be required due to institutional history and culture of not paying commissions With communication by the CEO explaining the rationale and investment in Class 1-3 firms as a path to 30% growth, implementation of a training program and bonus plan to engage RSD’s and FC’s (as well as to build the needed infrastructure and processes), Kauflauf will be able to successfully seek and earn new SaaS contracts with Sales Class 1-3 businesses.

Burke, W. W. (2013). Organization change: Theory and practice. Sage Publications.