TSUNAMI PREMIUM
How It Started
I worked as a CTO/ outbound consultant and did data and workflow (CIO) in inbound technology and information.
THE PROCESS
The System Upgrade
I decentralized the role of the IT guy who was unqualified and underperformed in both IT and office administration. Then I employed someone to do only office administration and nothing else for less pay.
Software Intergration
I developed software that automates the inventory, account payable, and inventory procedures. The owner then invested $20,000 in the software compared to paying $40,000 yearly for a staff.
This couldn’t be achieved before because they lacked the resources, but the software created a system that sped up the company’s growth.
Remuneration & Commission Adjustments
To create a growth mindset and strategy, I advised the owner to adjust the remuneration of the sales representatives who were paid high salaries of $60,000-70,000 and small commissions to the minimal legal payroll for the position but increase the commissions.
Important Staff Changes
We fired the old sales team that had been there for about 20 years and rehired a new sales team on a new schedule with no prior knowledge of the company’s history to form negative impressions to hold them back from performing.
Then I built a new commission schedule that challenged them to earn between $60,000- $120,000 depending on their effort, and growth exploded.
Expansion Of Sales Representatives Territories
I changed the idea of having one sales rep per territory and opened up everything to access any sales rep anywhere.
The Result: The company moved from making 3 - 4 million dollars to 7 million dollars (about 80% growth) in 1 - 2 years just by changing the organizational structure.
THE CHALLENGES & SOLUTIONS
Delayed Orders
As the company grew, the warehouse team complained about the sales team making way more despite their team ensuring delivery.
The Solution
I connected with the sales reps and encouraged them to share with the warehouse team.
My first tactic didn't work, so I applied a tip I learned from my mother when she worked as a manager in a restaurant to balance the warehouse and sales teams.
I explained to the sales team that their success depended on a well-skilled warehouse team, then reduced the sales reps' commission and reallocated it as a bonus to the warehouse team, and growth continued.
The Inventory
Next, I discovered that the inventory guy was still doing just-in-time inventory and not calculating lead time on inventory supply.
The Solution
I optimized the process and moved it from Just in Time inventory to Just in Case.
