Executive Summary
OuterBay is a company that has developed a strong brand name in the Information Technology industry by offering robust platforms and high quality services. The basic purpose of the company is to provide the customers with one stop solution for all the data and other integral information.
In spite of being a competitive and successful company, however, the sales decreased and the company has been unable to recruit talented and qualified individuals. Therefore, in order to overcome this issue, the company is considering improving the training process at the company, where the management is considering hiring experienced individuals. Along with this, the company is also considering developing a sales team that can achieve the long term strategic objectives by actually capitalizing the strong customer base of the company.
Problem Statement
The major problem that has been identified in the case is the fact that the company has been unable to recover the excessive cost which has been incurred because of lack of sales by the sales team which has increased the typical sales cycle. To overcome the issue, the company is finding a solution where sales can be increased for the company.
Critical Success Factors and Key Performance Indicators
The major critical success factors of OuterBay has been its differentiated product offerings, strong customer reference, regulatory compliance, financial stability, concept strategy and the access to diverse data. Along with this, the company needs to maintain and establish these critical success factors by focusing on key performance indicators.
Similarly, the organization needs to tie its flat rate to the variable cost also. To overcome the issue of lack of sales, the management should introduce inceptive programs which will allow the company to motivate employees to perform better. To increase its average revenue rate of $ 500,000 to around the double of this rate, the company has to offer higher and improved incentives to the organization.
Similarly, the need of the company is to keep a check and balance on the gross profits and also on the net profit margins by actually preparing vertical size profit statements which can monitor the trend and the return on investment ratio.
Conclusion
In the end, it can be said that the company needs to develop the new sales team which can work under the leadership of the new CEO. Along with this, with the introduction of new sales team the hiring policies should also be revised and individuals with experience in the same field should be hired.
Similarly, the company also needs to tie its flat rate to the variable cost per deal installation. Along with this, the company should also increase and advertise the products or services offered by the company in a rather effective manner. Therefore, the required average revenue rate would be $500,000 to around the double of the current rate.
Similarly, the sales target should also be set as per the industry norms. Sales team should be given incentives so that they can be motivated and perform as per the requirements of the company.