February 8, 2006

When you work for a new startup, you can expect that you’ll be hired in for one job, but end up doing more or something completely different.

When my CEO approached me to take over his Marketing department last summer, but I had no idea that it could possibly grow into managing our Channel Management function. That it could also lead to managing the Sales Operations for our startup.

We’re now at the crossroad where my CEO needs options from the Management Team on how to fix Sales, including the Channel Management function. He’s had to be CEO and VP of Sales, but is unable to manage all the complexities that come with Sales.

Key Business Issue: Sales are Down

Since last Wednesday my partner and I learned a company wants to acquire our startup, my day-job work has becoming increasingly worrisome.

As a Marketing Director, I’ve been re-engaged back into my Management Team responsibilities because we’re in the process of reviewing staffing, budget scenarios, and preparing for our lead investor’s visit next week.

We’re also facing another key issue - Sales are down.

We didn’t have any deals come in for January. If we’re lucky, we’ll have one in February. What’s going on? That’s what we’re trying to figuring out as a Management team.

Staffing and Budget Scenarios

Our CTO and COO took us through their staffing requirements. Understanding the budget concerns that Stan informed us about, the management team was able to slow down hiring.

However, one key question was left: do we still make key strategic hires in Sales?

We need a Channel Manager (to manage the value-added reseller agreements) and another Sales person. Our CEO had been stalling and for good reason because he wasn’t sure how he wanted to proceed. Under the existing budget scenarios, we’re burning cash and are cash negative by the end of the year due to sales issues.

I also did a deep dive into our Closed Won Sales data. I started using some data points during our budget meeting, and then my CEO asked me print more documents for our team’s review. So what’s really going on with Sales?

Channel Management Option for Marketing

The CEO asked all of us, “I’m leaving my title at the door. I’m asking for your feedback because I need to know what to tell our lead investor about our sales situation. I’m not doing in a good job in managing the sales team. Feedback?”

There was a long silence. Finally, breaking the silence, I quietly sighed, and then said, “I’ve been thinking about this for quite some time. I’ve been ambivalent to say anything because I wanted to see how things unfolded and I was worried about the impact to our Marketing department. I think you need to hand-off your day-to-day sales management duties. You and I have discussed what should be done. I’m willing to do that for you.” My CEO’s eyes light up.

The CTO, COO, and Controller all voice their approval saying, “We think this is a great idea…” The CEO replies, “That’s exciting. Yes that has implications for your department but we’re definitely talking about it later today.”

Personally, I thought my CEO had blown me off when I offered via email to manage his Channel Manager. So I didn’t bother to offer up the sales management function as a result.

In the time after my CEO asked for feedback about his sales performance, I had to think through, “What if my partner and I get acquired? I’m a headcount in the new plan. I was planning to leave my CEO’s company if this acquisition goes through. But what if the acquisition doesn’t go through? I have a duty to offer up myself as a resource if it helps the Management Team, the company, but mostly, my CEO.”

So I did the right thing, I offered up myself as an option to solve our problem. When I first offered to take on Channel Management in December, I had no idea that it would include the possibility of taking on Sales Operations.

Excited about all the Possibilities

My CEO’s a cool guy. He’ll tell you how he feels. He’ll tell you what he thinks, even if it’s not quite fully formed.

“I want to talk to you about your offer to manage the day-to-day sales function. I think this is exciting. I think there are other things we should consider to make sure we’re playing you to your highest value. You’re the best process person in this company. We have to use you to the fullest. I’m going to think about what that looks like.” My CEO said in his two-octave low tone.

“Thank you for your feedback. I appreciate your kind words.” I said. “I knew you were good when I hired you. I thought I knew what I was getting, but I didn’t know you were this good.”

“I’m taking care of this stock option paperwork even if it means giving you more to compensate. But we probably should consider giving you more anyway since you’ve more than proven yourself. I’d like to tell our lead investor next week that here’s our big plan for sales and marketing if he gives us more money and how you fit into it, but even with the lower funding level, here’s what you’re still doing.” My CEO says with more excitement.

The Smart Lemming Diary is a series that chronicles a journey of laid-off worker, who becomes a Vice President of Sales Operations & Marketing for a small entrepreneurial healthcare technology company. For previous entries in this series, click here. For the first diary entry, click here. For the highlighted Smart Lemming Diary entries, click here.

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