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Though they worked together for a year, Peterson struggled to yoke the distance between web and herself. Over lunch, Peterson praised Wows efforts to broaden his professional cleverness set by attending weekend gross gross revenue seminars and net workings with colleagues to better escort the affair. These efforts, she noned, surely contributed to his success in retaining his large, but sole(prenominal), client. Peterson then reminded Www of her concerns. Fred, Id handle to remind you that your primary(a) focus should be on sassy business. It seems as If you re spending too much time managing your one client, and thats not your job. Peterson continued, As Vive mentioned before, Id like to be kept abreast of your development efforts, so I know when and if you need help from me, or just aboutone else In the comp some(prenominal). I expect you to summarize your efforts every few days on our online gross gross sales tool, like everyone else on the team. If you spent mor e(prenominal) time in the topographic point, Id have a better sense of your business. Plus, Im confident youd glean some helpful selling techniques from your colleagues. Fin every(prenominal)y, Peterson questioned the value of the expensive add-on emoluments Www had sold to his client so early In the relationship.Www assured Peterson that all revenue booked?including additional divine services? originated at his clients request. He emphasize that the networking heed done in the Chinese community was nearly to pass on off he expect to sign three major sensitively clients In the coming quarter. Www then stated that, because he was about to become the most successful sales executive In the Plano office, he needed his own sales assistant to answer his phone and action administrative tasks. Peterson hoped her face didnt register her dismay at Wows request.Only the most older salespeople at account statement, some of whom Juggled more than 30 accounts, had their own sales assis tants. The easing of Accountancys salespeople shared assistants. What was Www thinking? Solely as a infrastructure for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective man mount upment. Although based on real events and scorn occasional references to actual companies, this case is fictitious and any resemblance to actual persons or entities is coincidental. Copyright 0 2013 President and Fellows of Harvard College.To position copies or request permission to produce materials, call 1-800-545-7685, write Harvard line of merchandise Publishing, Boston, MA 02163, or go to http//www. Hobs. Harvard. Deed. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. This document is classical for use only by Chugging You in Fall 2014 Engaging and Empowering mountain taught by Bobbie Ships Texas Christian University from Septem ber 2014 to October 2014. 913-560 Wendy Peterson Accountancy Background Accountancy was founded in 1988 by Will Gleason, a former accountant, and TravisHarriman, a software engineer. Gleason, a aged(a) executive at a large national accountancy system firm, felt that many of the back-office bill functions his firm provided to clients could be automated. Gleason envisioned, and Harriman built, a back-office write up software mathematical product designed for what they felt was an undeserved market small- and medium-sized businesses, particularly those with ambitious growth targets. It was easy for businesses to adapt the Accountancy product as their needs changed or expanded, thanks to the modular design of the software and a comprehensive suite of add-on options.Gleason cultivated relationships with local investors and venture capitalists to pass exposure to possible clients. The founders believed that their competitive advantage would come not only from their superior softw are but also from their strong client relationships, a combination that companies making off-the-shelf accounting products or large accounting firms were unlikely to replicate. The founders also believed that a flat organizational structure and collegiate culture would minimize office politics, strengthen employee morale, and heighten company performance.Soon their business model began to pay off. The product was sticky once businesses implemented the software (a one-time facility cost between $25,000 and $100,000 depending on the scope of desired services) and trained employees on its use, they were likely to renew their annual contracts. Accountants client renewal rate was 25% above the industry average, and most clients retained services for at least(prenominal) four years. In 2010, the firm earned nearly $100 jillion in revenues, and employed more than 400 employees in ten regional offices located in southern California, Arizona, New Mexico, and Texas.That same year, however , the proliferation of inexpensive, off-the- hell accounting software, combined with a faltering economy, drove down revenues three of its regions. The founders retired and the new CEO was determined to reignite the companys growth. He replaced the vice chairpersons of sales in a number of offices with the companys most enterprising young sales directors. all(prenominal) was given aggressive growth targets. If the revenue goals were met or exceeded, the new leadership and their sales teams would receive a substantial bonus.Wendy Peterson was one of the promoted employees. She was named vice president of sales for Accountants Plano, Texas, office. aft(prenominal) consultation with her superior, one of four regional senior vice presidents of sales, she agreed to grow the revenues of her underperforming office by 40% in two years. Accountancy Sales Organization Salespeople (generally referred to as sales executives) invested a significant amount of time getting to know clients and their businesses before submitting an sign proposal and turning the account over to a dedicated service team.Once a member of the sales team signed or re-create a client contract, day-to-day responsibility for product implementation and service transferred to an Accountancy account service am. Sales executives communicated with account service teams to come up abreast of implementation challenges and of potential add-on services that their clients might need. For new salespeople, the initial focus was outreach. Although some of the salespeople came from competitors, most came from sales or product management positions in other software or services Wendy Peterson 913-560 companies.New salespeople were expected to mine and leverage their personal networks and to research, cold-call, and cultivate their own lists of local prospects. impertinent most of Accountants employees, who were salaried, annual compensation for sales employees (about 20% of the companys employees) included a base wages portion (50% of annual compensation) and a commission component (50% of annual compensation). Escalating incentives existed for exceeding target revenue goals.If sales employees met or exceeded their annual financial targets and stated professional development goals, they were eligible for base salary increases. Although the salespeople mostly operated independently of each other, there were regional sales employee received a flat bonus payment ($7,000 in 2010). Total insemination ranged from $100,000 for first salespeople to $1 for Accountants most experienced sales managers. Background Peterson Joined Accountancy after graduating at the top of her Ivy League university class in 2000 with a degree in economics.A tireless worker with a peeping mind, she excelled as a Junior manager on a series of account service teams and earned stellar reviews from both clients and colleagues. By age 28, Peterson was managing account service teams herself. Said Peterson After six years working on and managing client engagements, I was ready for a change sales seemed a challenging, and potentially curative, opportunity. I was nervous, though, about fitting in with the sales organization after all, Id never worked in direct sales or closed new business.So I read books on varying sales strategies, attended weekend sales seminars, and requested to shadow two of the most successful sales directors (a small number of sales executives were promoted to the title of sales director to reflect their exceptional performance or tenure) in my office for the first month. Vive often been described as a doer?if I see a chance to help, I dont Just suggest an desire and wait for someone else to take charge. I like to do things myself. After Joining Accountants sales team it struck me that our senior sales provide benefited most from recurring revenue from our largest, longstanding customers.Their business was steady and demand little effort. Junior-level sales executives li ke me, on the other hand, worked overtime to lend new accounts and earned far less than experienced sales directors. As the pressure from management to drive new business increased, I spearheaded a volunteer mentoring program between Junior and senior sales professionals. The more experienced professionals imparted sales and client management wisdom to their Junior counterparts, in return for free assistance on large accounts.Camaraderie spiked and, I think, an unexpected benefit was that focusing on new business once more invigorated senior members of the sales team. I was one of the few sales employees who brought in lots of new business to Accountancy in 2008 despite the global financial crisis soon after I was promoted to manage the Plano sales organization. To me, the Plano team I inherited seemed disengaged I believed that changing the culture?by making my team closer and the office more collegial?would foster productivity and revenues. Under my direction, our performance im proved, and the team exceeded 2010 targets for new business by 15%.