Relationships, Reputation and Revenue: The Crucial Role of Chief Marketing Officers in Private Equity Value Creation

Relationships, Reputation and Revenue: The Crucial Role of Chief Marketing Officers in Private Equity Value Creation

by | Aug 28, 2024 | Blog

Relationships, Reputation and Revenue: The Crucial Role of Chief Marketing Officers in Private Equity Value Creation

Authored By Eric Walczykowski​

Eric W

I continue to hear from peers in the private equity backed software and SaaS businesses that one of the top reasons for a loss of sale is a disconnect between sales and marketing, and how the right CMO can turn that around.

At Bespoke, we are fortunate to leverage the enterprise strategic value that our Chief Marketing Officer, Adam Boone, contributes to our go-to-market and value creation strategy. However, I recognize that not every portfolio company shares this advantage.

I recently had the privilege of interviewing Alisha Lyndon, founder and CEO of Momentum ITSMA and author of The ABM Effect on the topic of Chief Marketing Officers in Private Equity companies. Our discussion ranged from alignment between marketing and sales, to marketing’s impact on value creation and how the right CMO keeps the team working towards the same North Star.

You can see the full vodcast episode here. 

Plus don’t miss Part 2 of my interview with Alisha this week: Register to Watch

Below is a summarized Q&A of part 1 of my conversation with Alisha.

Eric: Talk to me a little bit about the Chief Marketing Officer role within private equity and why it is such an exciting time to be a CMO in private equity as it relates to value creation.

Alisha: We work with many CMOs across portfolio companies, and it is an exciting opportunity. There is a clear path to value creation over the next three to five years, with marketing playing a crucial role. CMOs in PE-backed businesses benefit from having the resources of larger organizations while staying close to the business, offering the focus of a small company. This unique setup allows CMOs to have a real impact, with a seat at the boardroom table and a strong executive presence.
cmos in private equity

Catch Part 2 of Eric’s interview with Alisha this week!

Register Today

Eric: My Chief Commercial Officer has a background as a Chief Marketing Officer, which I value for the strategic expertise and market understanding Boone brings. In private equity, go-to-market strategies are central to value creation plans, yet people often focus on the CRO (Chief Revenue Officer) or sales. I would like to hear more about the critical role of the CMO in these plans, especially in relation to account-based strategies, which you have written extensively about.

Alisha: The CMO plays a crucial role beyond just driving revenue. While the CRO focuses on revenue generation, the CMO is essential for understanding how clients and customers buy, their needs, and how the organization can build relationships and reputation to create a path to revenue. They shape positioning, messaging, and enablement, ensuring the organization effectively communicates value. CMOs are uniquely positioned to engage with SMEs (Small and Medium-sized Enterprises), executives, and customers, enhancing deal velocity, winning accounts, and retaining and growing customers. Their insight is key to refining the value proposition and staying aligned with market opportunities, making them vital to maximizing growth.
cmo kpis

Eric: When I think about the classic Chief Marketing Officer and the private equity environment, it is driven by KPIs, KPIs, KPIs. How do we measure marketing success, and what are some of the common KPIs related to a Chief Marketing Officer for value creation?

Alisha: The traditional playbook has been heavily lead-focused, centered around the funnel—getting as much in at the top and converting what flows out. This approach often prioritized “grow at all costs.” However, a shift is occurring in value creation strategies, with more emphasis on anchoring the entire business to drive performance. The focus is now on building a sustainable growth model, which involves winning the right clients to ensure long-term growth without drastic fluctuations and maximizing customer retention to drive advocacy. We are advocating for a measurement model centered on the “three R’s.”
  1. First, relationships: expanding and deepening connections within prioritized accounts.
  2. Second, reputation: positioning the organization to fully support land-and-expand strategies and maximize opportunity size.
  3. Third, revenue: adding pace to deals and ensuring that pipelines are not just filled but converting effectively.
In today’s complex buying environment, many deals may go nowhere, so it’s crucial to have a unified team with a shared revenue goal.
cmo kpis

Eric: I love the idea of the three R’s, it’s easy for folks to conceptualize around relationships. Talk to me a little bit more about the reputational aspects of it and how we go about measuring reputation scores.

Alisha: Reputation is crucial in private equity-backed businesses, especially with frequent M&A activity. When acquiring new businesses, it’s important to drive organic growth by deepening relationships with existing customers through cross-selling, upselling, and expanding within accounts. To expand in accounts, you must earn the right to sell new offerings if you’re primarily known for another. This involves building thought leadership, strong positioning, and a clear value proposition. Reputation can be measured by how many accounts are buying new products or services and the extent of multi-threaded opportunities. While metrics like CSAT and NPS are useful, they’re more lagging indicators. The leading indicator is opening new opportunities and buying centers previously inaccessible. Marketing plays a key role in maintaining message and channel consistency. Trust is built gradually but can be quickly lost, so it’s essential to consistently build the right reputation and brand, ensuring customers stay with you and support organic growth and expansion.

Eric: That is very consistent with what we’re seeing when we’re building executive teams and scorecards. Could you talk a little bit more about the importance of alignment between marketing and sales, and how Chief Marketing Officers and others on the executive team can ensure that they’re aligned on that go-to-market strategy?

Alisha:

This is a crucial issue. The primary reason for lost sales is often a disconnect between sales and marketing, making their alignment a business imperative. Marketing’s role in ensuring message consistency throughout the pipeline is vital, as it can streamline deal cycles and reduce noise.

 Marketing must also ensure that sales teams and broader go-to-market teams, including customer success, product teams, and sales engineers, carry the right message into customer interactions. Alignment between marketing and sales is essential, extending to shared goals and compensation plans. Marketing should be incentivized similarly to sales, with clear objectives for pipeline creation, deal acceleration, and conversion. This alignment requires having the right talent, structure, and compensation in place within the marketing organization, ensuring that both teams work toward the same goals.

Aligning Marketing and Sales for Optimized Deal Cycles

Alisha effectively emphasized how marketing can optimize deal cycles, identified the key marketing metrics to focus on, and underscored the importance of structuring marketing departments to align with sales goals. As these roles continue to evolve, structuring these teams to work together efficiently is more critical than ever, resulting in a stronger go-to-market strategy and improved outcomes.
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Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

About Momentum ITSMA

Momentum ITSMA enables ambitious companies to achieve market-beating performance by winning, growing, and retaining the most valuable client relationships. Momentum’s consulting, research, and learning services help build go-to-market teams, optimize strategic accounts, and gain greater market share.

Connect with Momentum to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us
Eric W

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Alisha

Featuring:
Alisha Lyndon
Chief Executive Officer,
Momentum ITSMA

Alisha is the Chief Executive at Momentum ITSMA, with over 20 years experience advising technology, professional services and financial services firms on revenue performance, go-to-market, strategic account growth.

Entrepreneur and growth evangelist, Alisha pioneered account-based marketing and went on to establish the first consulting firm to focus on driving revenue in strategic accounts.

She is host to America’s top 100 management podcast, Account-Based Marketing, author of The ABM Effect: How to Win, Retain and Growth Valuable Clients, is a regular contributor to Forbes and a speaker on growth topics.

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Hiring Head Start: Winning the Race for Leadership Talent in 2025

Hiring Head Start: Winning the Race for Leadership Talent in 2025

by , | Aug 22, 2024 | Blog

Hiring Head Start: Winning the Race for Leadership Talent in 2025

By Adam Boone, Matt Sommi

Adam Boone
Matt Sommi

Imagine standing on the finish line when the starter gun goes off.

That’s the outcome our clients will experience as they get a jump on 2025 leadership hiring now.

With about a third of calendar year 2024 remaining, it might seem premature to start hiring for 2025 now.

But in fact, the timing is perfect if you are looking to position your private equity backed company for success.

A senior leader who starts work in the first week of January can deliver at least two additional quarters of value creation execution in 2025, compared to a leader hired via a search starting then.

In other words, if you wait to start your search until the January 1 budget kicks in, you are six months behind.

Talent Market Dynamics

The key is understanding that leadership talent is a market like any other. Companies are the “buyers” aiming to land the best talent. Those executives are the “sellers” who put their services up for sale.

If your intent as a buyer is to generate outsized returns for investors, then you need to secure the best talent and do so ideally at the lowest cost.

Simple supply and demand principles dictate that the best time to achieve that is when demand is lowest.

That’s why we advise our clients to start their hiring process now for key leaders they plan to bring on board in 2025. If you wait until the 2025 budget kicks in, you will be competing against every other firm looking for that talent.

Besides landing the best talent at the best price, you stand to gain a major boost in value creation that can shorten hold periods and maximize returns.

That’s through the metric we track as “Days to Value Creation.”

Cutting your Days to Value Creation

Our “Days to Close” in executive search is typically half the industry average. There are many reasons for this market leading performance:

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Our exclusive focus on software and SaaS and our specialization in private equity mean we have the best network and best perspective on talent.

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We cap our recruiter searches to provide the most intensive focus on your search.

R

We never “quiet quit” like firms who are looking for a fast transactional win. When these firms fail to solve your search quickly, they will appear to maintain the same level of activity, collect the retainer payments, and then eventually admit they cannot recruit the right executive.

R

Our data-driven process is built to optimize search efficiency, accelerating search steps while consistently producing better results.

Why does all this matter?

Because the metric that matters most for our private equity clients is Days to Value Creation.

Executing on value creation plans is essential to achieving the investment thesis. So time is of the essence when recruiting the executives who lead that effort.

Consider the typical timeline for finding and onboarding a new senior executive:

start your 2025 searches

Click/tap the timeline to view fullscreen.

This all means that over a year has passed from the moment an executive hire is needed to when the execution on value creation plans truly begins.

So in effect, if you don’t start the search until January 1 of 2025, your chosen executive will not be generating value at pace until 2026.

Achieving Industry-Leading Days to Value Creation

Working with Bespoke Partners provides two benefits for achieving the most efficient Days to Value Creation:

growth

Our market-leading search Days to Close is half the industry average and can cut a third of the overall Days to Value Creation.

bespoke icons - blog handshake

Our network and relationships with the industry’s best talent enable us to understand who is soon to be on the market so you can connect and secure them before others do. We also have the best visibility into high potential step-up candidates who are ready for the top role.

utilities

Faster searches with better outcomes are the hallmarks of the Bespoke process.

The result is a Days to Value Creation that puts you ahead of the pack.

If your team is contemplating a hire, please get in touch. We are happy to provide compensation data by function and scale, give you visibility of actionable executives in our network, and offer perspective on market trends for specific roles.

Contact Us

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners
Adam Boone

Author:

Adam Boone
Chief Marketing Officer

Boone has led marketing, demand generation, branding, product management, services marketing, or alliances marketing programs for numerous successful companies including Avaya-acquisition Sipera, Sequoia start-up Syndesis, Subex, CoManage, and others. He has driven joint marketing programs and go-to-market initiatives with iconic industry leaders including Microsoft, IBM, GE, AT&T, Oracle, Comcast, Cisco, Ciena and Samsung.

Boone holds an MBA in Business Strategy from the WP Carey School of Business at Arizona State University and completed the Competitive Marketing Strategy Program at the Wharton School at the University of Pennsylvania.

In his personal time, Boone enjoys travel, fine food and wine, mountain biking, playing and listening to music, and movies.

 

Matt Sommi

Author:
Matt Sommi
Senior Vice President

Based in Philadelphia, Matt helps lead Bespoke’s client engagement  efforts across the firm’s suite of services.

Prior to joining Bespoke, Matt spent 8 years in research and business development at GLG, supporting private equity due diligence efforts and building relationships with GLG’s middle market private equity firms. 

Execution and Measuring Success in the US Market for European Software or SaaS Companies

Execution and Measuring Success in the US Market for European Software or SaaS Companies

by | Aug 20, 2024 | Blog, US Country Leader

Execution and Measuring Success in the US Market for European Software or SaaS Companies

Authored By Eric Walczykowski​

Eric W

A successful US market entry depends on seamless execution from strategy to tactics.

The leader must ensure the following steps are meticulously planned and executed:

1. Strategize

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Develop a Market Entry Plan

Craft a detailed plan vetted by the executive leadership team (ELT), board, and private equity sponsor to ensure alignment at the top.

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Set Achievable Goals

Clearly define what success looks like and set realistic, attainable goals.

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Align Resources

Ensure the necessary resources are in place to achieve these goals. A common mistake is underestimating the resources required to penetrate the market.

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Communicate the Plan

Share the plan with the team executing it and other company stakeholders to garner support and ensure everyone is on the same page.

2. Execute Tactically

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Develop Core Processes

Establish processes that support the achievement of key performance indicators (KPIs).

$

Localize Marketing Campaigns

Implement targeted marketing campaigns that resonate with the US audience.

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Sales Initiatives

Drive sales through strategic initiatives tailored to the US market.

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Customer Engagement Programs

Foster strong relationships with customers through engagement programs designed to meet their needs and expectations.

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Measure Results Frequently

Regularly measure results and make course corrections as necessary to stay on track.

Building a Cohesive Team and Maintaining HQ Connections

The country leader’s role includes building a cohesive US team and ensuring strong connections with HQ to maintain alignment and leverage support.

1. Team Development

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Hire to Values

Recruit individuals who align with the company’s culture and values.

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Assess Capabilities

Ensure team members have a proven track record of success in the roles they are hired for.

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Reinforce Values

Keep company culture and values front of mind and support meaningful interactions to reinforce these values.

2. HQ Integration

$

Use Technology

Utilize tools like Zoom to maintain regular communication.

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Regular Travel

Travel frequently to build alignment and rapport with HQ.

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Checkpoints with Key Stakeholders

Set up regular checkpoints with key HQ stakeholders to keep them informed and solicit their help.

Performance Assessment and Strategic Adjustments

Regular performance assessments are crucial to measure success and make necessary adjustments. Key metrics include:

1. Sales Growth

$

Monitor Revenue and Market Share

Keep track of sales growth and market penetration specifically in the region.

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Track Key Activities

In addition to sales and bookings, monitor key activities that drive sales as early indicators to provide feedback on strategy. Be sure to evaluate these activities in the context of the US. Activities may have different levels of effectiveness in different regions.

2. Customer Satisfaction

$

Win and Loss Calls

Conduct win and loss calls to gather feedback from early customers and to gain a better understanding of competitive dynamics in the US.

$

Stay Close to Early Customers

Ensure they are satisfied and become net promoters.

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Multi-Year Strategy

Design a strategy that focuses on getting the offering right in the early years and optimizing for the US as the most effective elements emerge.

3. Operational Efficiency

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Evaluate Local Operations

Assess the efficiency of US operations and support mechanisms regularly.

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Adjust as Needed

Make necessary adjustments to improve operational efficiency and align with strategic goals for the region and the company overall.

By focusing on the selection and development of the right US country leader, European private equity firms can significantly enhance their chances of successfully scaling software companies in the US market. This leader’s ability to integrate strategic vision, operational expertise, and cultural adaptability will be the cornerstone of a thriving US presence.

Developing and executing a market entry plan that has been vetted and aligned with top stakeholders ensures clarity and support. Communicating the plan effectively and aligning resources are critical to avoiding common pitfalls. Tactical execution and continuous measurement allow for real-time adjustments that reflect the learnings and experience on the ground in the US, leading to sustainable growth.

Stay tuned for more insights on how to continue evolving and optimizing your US market strategy to ensure long-term success.

Partnering with Bespoke Partners for Leadership Success

Bespoke Partners stands out as the premier firm focused exclusively on executive recruiting and leadership advisory services for software and SaaS companies in the United States. Here’s why Bespoke Partners is the ideal choice for finding the right country leader:

  • Proven Track Record: Bespoke-placed executives have led their companies through exits and more than 425 acquisitions, totaling over $135 billion in value.
  • Extensive Network: The firm has successfully recruited over 1,000 top-performing leaders into private equity portfolio companies, including CEOs, CFOs, CROs, CMOs, CPOs, CTOs, CIOs, CHROs, Board Members, Operating Partners, Vice Presidents, and more.
  • Specialized Expertise: Bespoke Partners has conducted over 25 country manager searches specifically for private equity firms, demonstrating deep understanding of the unique challenges and opportunities in scaling businesses internationally.
  • Efficiency and Success Rate: Utilizing a unique, data-driven methodology, Bespoke completes searches in typically half the industry average time with a 95% placement success rate. Their process identifies leaders who will drive growth and minimize the risk of C-suite mis-hiring.
Learn More at Bespoke Partners

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

More Posts in This Series

Execution and Measuring Success in the US Market for European Software or SaaS Companies

By focusing on the selection and development of the right US country leader, European private equity firms can significantly enhance their chances of successfully scaling software companies in the US market. This leader’s ability to integrate strategic vision, operational expertise, and cultural adaptability will be the cornerstone of a thriving US presence.
Read More

Building a Holistic US Market Entry Strategy with the Right Leader for Your European Software or SaaS Company

This week, we delve into the critical components of a comprehensive go-to-market (GTM) plan and the balance between leveraging HQ resources and developing local capabilities.

Read More

General Manager vs. Sales Leader: Who Should Lead the Charge in the New Growth Region?

When European software and SaaS companies scale to the US market, many firms default to appointing a sales leader due to the emphasis on go-to-market (GTM) strategies. However, this approach can be flawed if the leader lacks the broader operational skillsets required to build a sustainable presence in the US.

Read More

The Crucial Role of Leadership in Scaling European Software Companies to the US

Scaling a European software or SaaS company to the US market is a complex endeavor, and selecting the right country leader is pivotal to success.
This is part 1 of a series of postings on the strategic considerations and best practices for choosing a leader who can navigate the challenges and capitalize on the opportunities in the US market. We have successfully recruited US leaders for software and SaaS companies based in Europe and we specialize in private equity sponsored companies executing on this growth strategy.

Read More
Eric W

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

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Navigating the Talent Gap in Go-to-Market Strategies: Insights from Industry Leaders

Navigating the Talent Gap in Go-to-Market Strategies: Insights from Industry Leaders

by | Aug 15, 2024 | Alliance, Blog

Navigating the Talent Gap in Go-to-Market Strategies: Insights from Industry Leaders

Authored By Eric Walczykowski​

Eric W

While 87 percent of CEOs agree that having the right people with key go-to-market skills is crucial to their success, only 46 percent think they have it right. Those are the findings from recent research conducted by SBI, a go-to-market (GTM) growth advisory firm.   

I recently had the privilege of interviewing SBI’s CEO Mike Hoffman on the topic of an emerging gap between GTM talent and growth strategies for PE backed portfolio companies. The insights shared by Mike highlight the impact of GTM talent on a company’s ability to grow, create value and eventually exit.

Below is a summarized Q&A of my conversation with Mike.

Eric: Talk to me about the gap between GTM strategy and go-to-market talent?

Mike: If you look at the greatest growth strategy in the world tied to the greatest go-to-market operating model that you could ever have, but wrap it around bad talent, you will not get the juice from the squeeze. CEOs feel like our go-to-market talent is massively important to our growth success and our value creation success. And if you just read into it, about half of the CEOs will say, “I’m not really comfortable that we have the right go-to-market team on the ground.” You know, ramifications for that are they feel like it’s a bit of a black box. The CEOs who are the most confident in their go-to-market talent are the people who have the highest level of confidence in their CRO and their CMO.

Tailored Talent - SBI Mike Hoffman

You can see the full interview with Mike in our Tailored Talent vodcast series, here.

Watch the Full Interview

Eric: That really underscores the work that we do here at Bespoke Partners, scorecarding that CRO or CMO role, is so important. Both of us are CEOs and if we have faith and confidence in our key leaders, that’s going to flow down throughout the organization. Talk to me about getting the role design right for CROs and CMOs in an organization and how it impacts exit.

Mike:

We first need to focus on alignment … alignment between the investors and the management team, and alignment within the management team. From there it is knowing your growth model, and the different levers you’re going to pull. When investing in growth it’s either market expansion or new product introduction. Lever two is about go-to-market optimization, so pricing and retention. When you pick your CMO or your CRO, the key to picking the right person is understanding what the role of growth in driving value creation is.

talent gap

Eric: How do you feel about go-to-market being a primary value creation lever and aligning board composition around that on the board of directors and its influence?

Mike:

In private equity, you can make money without growth, but you probably have to be buying assets at six times EBITDA. But from a standpoint of having a person on the board that, one, understands it, two, can help the management team and specifically the go-to-market team, think differently about how they get to the outcomes that they’re looking for, and three, be an advocate on the board for the investors.

The data does suggest that if you have a growth plan, your plan will be wrong. So below are the three things you need to think about:

  1. Constant reassessment, is the current plan the right plan?
  2. Have multiple plans. If you only have one plan, your growth plan is wrong. If you have five plans, you are closer to right.
  3. Planning for capacity that can take advantage of market dynamics. Set yourself up to grow when the opportunity arises.
aligning top talent

Eric: One of the biggest mistake CEOs make is not planning for the right capacity, specifically around go-to-market talent. Talk to me about capacity planning within that context.

Mike:

You’ve got to understand the lead and ramp time for capacity. In today’s market, it might take six months to find the right leader, then another three to six months to get ramped up. So, you’ve got to be thinking 12 months in advance about your capacity planning.

Secondly, you want to make sure you have the right mix of go-to-market talent and support roles to ensure your go-to-market strategy is fully supported. Lastly, you’ve got to consider the scalability of your capacity. Can your current team scale with the growth, or do you need to bring in additional resources?

Mike’s viewpoints demonstrate the importance of confidence in leadership, the need for alignment between growth objectives and GTM strategies, and the critical role of capacity planning.

For CEOs, understanding and addressing these elements can significantly impact the ability to create value and achieve growth. As the market continues to evolve, having a robust and flexible GTM strategy, supported by the right talent and capacity planning, will be more crucial than ever for success.

Contact Us

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

About SBI

SBI provides Go-to-Market Growth Advisory for innovative companies. Their unique approach to collaborative consulting comes from strategic implementors who have owned and operated marketing and sales at some of the world’s most successful growth companies.

They have developed an intimate understanding of the buyer-seller journey, which enables SBI to help actively apply relevant data, strategies, and tactics for significant outcomes.

Connect with SBI to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us
Eric W

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

mike sbi updated

Featuring:
Mike Hoffman
Chief Executive Officer
SBI, The Growth Advisory

About Mike

Experienced executive leader with a demonstrated history of value creation through growth strategies in the technology, industrial, and software markets. Highly skilled in Enterprise Software/technology, International Business, Go-to-market Strategy, and Global Talent Acquisition.

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Building a Holistic US Market Entry Strategy with the Right Leader for Your European Software or SaaS Company

Building a Holistic US Market Entry Strategy with the Right Leader for Your European Software or SaaS Company

by | Aug 13, 2024 | Blog, US Country Leader

Building a Holistic US Market Entry Strategy with the Right Leader for Your European Software or SaaS Company

Authored By Eric Walczykowski​

Eric W

Successfully entering the US market requires more than just a strong sales strategy. An effective country leader must craft a holistic plan that covers the entire customer journey, ensuring sustainable growth and customer satisfaction.

This series is based on our extensive success in recruiting US leaders for software and SaaS companies based in Europe, along with our specialization in private equity sponsored companies employing this strategy.

This week, we delve into the critical components of a comprehensive go-to-market (GTM) plan and the balance between leveraging HQ resources and developing local capabilities.

Developing a Comprehensive Go-to-Market Plan

1. Marketing and Positioning

To effectively position the product in the US market, a leader must:

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Survey the Market

Conduct thorough market research to understand customer needs, preferences, and pain points.

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Analyze Competitors

Evaluate how competitors meet customer needs and identify gaps in their offerings.

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Leverage Global Success

Understand how the company meets customer needs in the rest of the world to highlight unique selling points.

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Market Dynamics

Assess market headwinds and tailwinds to identify opportunities and threats.

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Design Market Positioning

Develop a compelling market positioning strategy that resonates with US customers.

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Ongoing Resources

Determine the need for ongoing resources such as brand recognition efforts and customer value proposition communication.

2. Sales and Distribution

Creating a robust sales strategy involves:

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Customer Interaction Preferences

Understand how US customers prefer to interact and purchase products.

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Competitive Sales Models

Analyze how competitors in region sell their products and identify best practices.

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Company Sales Practices

Review the company’s current sales practices and adapt them to the US market.

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GTM Strategy

Develop a comprehensive GTM strategy with clear KPIs to track progress and effectiveness.

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Team Resources

Assemble and train a capable sales team that can execute the GTM strategy effectively.

3. Delivery and Support

Ensuring reliable delivery and strong support infrastructure requires:

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Customer Needs

Understand the specific delivery and training needs of US customers.

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Competitor Practices

Evaluate how competitors handle delivery and support.

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Global Practices

Leverage the company’s successful delivery and support models from other regions.

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KPIs for Quality

Develop key performance indicators to ensure high-quality delivery and customer support.

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Customer Journey Alignment

Align the support strategy with the customer journey to enhance product usage, provide ongoing training, and ensure strong renewal rates.

Balancing HQ Resources and Local Capabilities

The right leader knows how to balance leveraging HQ strengths with building local capabilities.

1. Leverage HQ Strengths

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Existing Technologies

Utilize advanced technologies and processes from HQ to maintain consistency and operational efficiency.

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Proven Processes

Implement successful practices from HQ to streamline operations in the US, while ensuring to adapt them to any regional factors.

2. Develop Local Teams

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Local Talent

Recruit and train local teams for sales, support, and operations to ensure responsiveness and market alignment.

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Augment Resources

Identify gaps in HQ capabilities and fill them with local resources.

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Integrated Approach

Develop a plan to integrate HQ strengths with local capabilities, ensuring a seamless operation.

3. Key Performance Indicators (KPIs)

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Alignment with Value Creation Plan

Develop KPIs that align with the overall value creation plan of the private equity firm.

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Performance Tracking

Regularly track and assess performance against these KPIs to ensure strategic goals are being met.

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ensure strategic goals are being met. Adaptability

Use KPI insights to adapt and refine strategies as necessary for continuous improvement.

Building a holistic US market entry strategy requires a leader who can seamlessly integrate marketing, sales, delivery, and support functions while balancing HQ strengths with local capabilities. By focusing on comprehensive market research, customer-centric strategies, and robust operational frameworks, European software companies can achieve sustainable growth and customer satisfaction in the US market.

Partnering with Bespoke Partners for Leadership Success

Bespoke Partners stands out as the premier firm focused exclusively on executive recruiting and leadership advisory services for software and SaaS companies in the United States. Here’s why Bespoke Partners is the ideal choice for finding the right country leader:

  • Proven Track Record: Bespoke-placed executives have led their companies through exits and more than 425 acquisitions, totaling over $135 billion in value.
  • Extensive Network: The firm has successfully recruited over 1,000 top-performing leaders into private equity portfolio companies, including CEOs, CFOs, CROs, CMOs, CPOs, CTOs, CIOs, CHROs, Board Members, Operating Partners, Vice Presidents, and more.
  • Specialized Expertise: Bespoke Partners has conducted over 25 country manager searches specifically for private equity firms, demonstrating deep understanding of the unique challenges and opportunities in scaling businesses internationally.
  • Efficiency and Success Rate: Utilizing a unique, data-driven methodology, Bespoke completes searches in typically half the industry average time with a 95% placement success rate. Their process identifies leaders who will drive growth and minimize the risk of C-suite mis-hiring.
Learn More at Bespoke Partners

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

Next Week: Execution and Measuring Success in the US Market for European Software & SaaS Companies

In next week’s posting, we will explore the execution phase of the US market entry strategy. We will discuss the importance of strategic execution, building a cohesive team, and maintaining strong connections with HQ. Additionally, we will cover how to assess performance and adjust strategies to ensure success. Stay tuned!

More Posts in This Series

Execution and Measuring Success in the US Market for European Software or SaaS Companies

By focusing on the selection and development of the right US country leader, European private equity firms can significantly enhance their chances of successfully scaling software companies in the US market. This leader’s ability to integrate strategic vision, operational expertise, and cultural adaptability will be the cornerstone of a thriving US presence.

Read More

Building a Holistic US Market Entry Strategy with the Right Leader for Your European Software or SaaS Company

This week, we delve into the critical components of a comprehensive go-to-market (GTM) plan and the balance between leveraging HQ resources and developing local capabilities.

Read More

General Manager vs. Sales Leader: Who Should Lead the Charge in the New Growth Region?

When European software and SaaS companies scale to the US market, many firms default to appointing a sales leader due to the emphasis on go-to-market (GTM) strategies. However, this approach can be flawed if the leader lacks the broader operational skillsets required to build a sustainable presence in the US.

Read More

The Crucial Role of Leadership in Scaling European Software Companies to the US

Scaling a European software or SaaS company to the US market is a complex endeavor, and selecting the right country leader is pivotal to success.
This is part 1 of a series of postings on the strategic considerations and best practices for choosing a leader who can navigate the challenges and capitalize on the opportunities in the US market. We have successfully recruited US leaders for software and SaaS companies based in Europe and we specialize in private equity sponsored companies executing on this growth strategy.

Read More
Eric W

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

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Beyond the Title: Key Trends Shaping the Future of HR Leadership

Beyond the Title: Key Trends Shaping the Future of HR Leadership

by | Aug 7, 2024 | Blog

Beyond the Title: Key Trends Shaping the Future of HR Leadership

Authored By Alex Bossetta

Alexandra Bossetta

For HR leadership, the focus continues its shift from traditional titles and roles to innovative and strategic human capital practices. As companies strive to adapt to dynamic business conditions, HR executives are at the forefront of driving these changes.

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors.

Our dedicated HR and People practice has successfully completed over 100 placements in portfolio companies. Our placed HR and People leaders have created $4.8 billion in enterprise value created via their work.

Track Record for this Practice:

hr practice track record

Innovation Trumps Title: The True Mark of Effective HR Leadership

The debate over titles such as Chief Human Resources Officer (CHRO) and Chief People Officer (CPO) continues, but the real differentiator for effective HR leadership is an innovative mindset. Today’s HR executives must transcend traditional roles focused largely on administration of HR processes to become strategic partners within their organizations. Their ability to bring creative solutions to complex challenges defines their value more than their official titles.

Our data underscores that innovation is the cornerstone of effective HR leadership. Innovative HR leaders can drive organizational change, enhance employee engagement, and align HR strategies with overall business goals. Regardless of whether they hold the title of CHRO, CPO, or another designation, their innovative approach is what sets them apart.

Effective HR leaders are those who can think outside the box and drive strategic initiatives that align with the company’s vision.

Location Matters: The Significance of Proximity in HR Executive Roles

Geographic location is returning to be a critical factor in HR executive searches. The physical proximity of HR leaders to the company’s headquarters seems to significantly impact their effectiveness. Being within driving distance allows HR executives to maintain a strong presence and engage frequently with their teams, fostering a cohesive and collaborative culture.

Clients have shared with our team that leaders who are physically present can better understand and influence the company culture, quickly address issues, and build stronger relationships with employees at all levels.

Compensation and Scorecarding: HR Executives at the Center of Compensation Strategies

HR leaders are increasingly taking center stage in shaping compensation strategies across the organization, working closely with CFOs and boards. This shift reflects the growing recognition of the strategic role that HR plays in aligning compensation with overall business objectives and driving performance.

In larger firms, there is more flexibility with equity and bonus structures, allowing HR leaders to tailor compensation packages that attract and retain top talent while promoting a culture of high performance.

Smaller companies, on the other hand, often maintain more constrained compensation packages  but still prioritize aligning these packages with their strategic goals.

Our research team has evaluated hundreds of data points on the critical importance of these roles, highlighting the need for HR leaders to prioritize culture fit over mere experience. By engaging with various stakeholders across the company, HR executives can ensure that compensation strategies not only attract top talent but also drive desired behaviors and outcomes.

hr petr
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Embracing the Future of HR Leadership

We have seen time and again that effective HR leaders are those who bring innovative solutions to the table and are not defined by their titles but by their ability to drive strategic initiatives and align HR practices with broader business objectives.

The true mark of effective HR leadership lies in an innovative mindset, strategic presence, and active involvement in compensation strategies. These elements are critical for HR leaders to drive organizational success and foster a thriving company culture.

Find out more about Bespoke Partners HR and People practice: People & Talent Leadership Practice – Bespoke Partners

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners
Alexandra Bossetta

Author:
Alexandra Bossetta
Partner, Head of People & Talent Practice

As Partner, Alex is currently the practice lead for the firm’s HR, People and Talent practice; co-lead of the firm’s Go-To-Market practice and Head of the Austin office. She leads executive recruitment and assessment for high-growth, PE-backed and public software organizations, placing leaders in CEO, President/ COO, Sales and Marketing, and HR/ Talent leadership roles. During her tenure, she has successfully completed 100+ searches including multiple team builds.