More for sales, has TK met with any customers? Does he act normal and sound experienced?
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The strategy is lose the smaller customers (who won't pay higher prices), and maybe lose some bigger ones? And don't pursue new logos? That's inspirational. I guess that works if the goal is to sell off each BU (and maybe replace them with new acquisitions, rinse and repeat.)
No, if you are an employee it will not make sense. When zero cost comes down to affecting the sales team and having TK having to approve a $500 customer trip from an ERM one has to start thinking about the insanity of that level of micro management and its impact on the bottom line. Making sense of that will never happen.
The obsession with compo plans is the problem.
His business model (which is very short-sighted) is to only care about the 100 or so largest customers and sc--w the rest. He figures he can't keep the smaller guys by raising the prices whereas the larger customers (he thinks) will stick around. Won't work, but TK thinks he knows everything because he's a Princeton grad and stepped on people many times to climb the ladder... With any luck he'll be selling real estate in a few years after he sinks a few companies...
Yes. He had met with the CIOs from Bank of America, Credit Suisse, and Goldman Sachs. They all asked for a $700 Million SE to cover the sh-t deal they signed…
to the poster about the "business model changing" what do you mean? Does he intend to reduce the customer base less noise for what's to come in the future? I know we should expect the worse here but, what am I selling for? My new comp plan has yet to be disclosed to me. Frustrated here.
What some people don’t seem to grasp is that the business model (i.e. the way we sell) is being changed; allowing us to reduce the overhead costs in the marketing and channel departments. The thinly resourced IT support functions (especially those dealing with our customers) is a concern though.
From the PE owner's view of what experience matters, Krause is very qualified. He was able to successfully cut the employee base at Symantec and CA to the bare minimum. But I can't imagine he would want to meet with customers, who are now demanding that their numerous complaints about declines in customer support staff are addressed ASAP.
Mr. Krause doesn’t have to, he’s not a salesman, he has been hired to rationalize the companies just like “Neutron Jack” Welch did. Just let him do his job, it will make sense to you eventually.