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January 16, 2025
I screwed up.
I never imagined turning down a fat six figure consulting assignment. But I did – just a few months ago. And that was NOT the screw up. I did not charge anything for the upfront discovery work to prep for the real SOW. THIS was my major mistake because people do not value what they do not pay for.
It went like this….
A friend (let’s call him Dan*), is elevated to interim CEO of a SaaS company built on Salesforce. “We have a marketing problem,” he shares.
“Okay – what’s the problem?” I ask.
“That’s what we need you to find out,” he replies.
Anyone who has been in a consulting capacity knows Consulting 101 = define the problem.
Dan could not articulate the ‘marketing problem’ except to say it has resulted in a much lower pipeline. The company was recently acquired by a European Private Equity firm and missing the next quarter was NOT an option. Stakes were high.
The board, a mix of PE, other SaaS leaders and the founder who had sold his company, needed persuading to bring in an outsider to identify (and fix) the ‘marketing problem.’ Their prevailing thought was ‘can’t we do this ourselves?’
Naturally the answer is no, you cannot. Because if you do what you’ve always done, you will get what you always got, right Tony Robbins?
When approaching a task like this, LOCC reverse engineers the answer by digging into and re-focusing the question: I began by interviewing key leadership team members and the board (including the former owner who sold the company)
Who does this company sell to? What are the types of firms or clients? Tell me about the personas.
Why should prospects want this SaaS platform? What will it do for them? – not features and benefits - help me understand the VALUE you deliver.
Why should anyone care about this; about what you do or deliver?
It is no exaggeration to say that exactly no one interviewed had the same answer to these questions.
They rarely do. Not even the Chairman who was the PE firm representative.
Here’s a sample from my report to the interim CEO (my friend Dan) and to the board:
Based on what I am hearing, the problems stem further upstream than “marketing.” It seems marketing is where they are acutely felt, but the issues are deeper and start further up the chain.
Topline findings:
Complete lack of alignment across the entire organization
No one can articulate what this company is / what it does / why targets should care
There is no solid ICP – lots of them, but no single one
No value proposition, nothing to market against and separate from the competition
Product is good (very) but who we sell to and how we sell is answered differently by every person (indicating a lack of cohesive understanding about who we are, what we do, why anyone would care)
Marketing can drive the dialogue to determine these answers, but this effort requires all business units (and the board).
Individual Interview Responses:
Question: Who is this product sold to?
Question: What is your ICP?
Question: Tell me about the Marketing function…
You see where this is going. In terms of a value proposition – no two people gave the same answer.
Ultimately, they did not have a ‘marketing problem.’ They have a BRAND problem that is seen and felt most acutely in the marketing function. But it starts MUCH further upstream – it starts around the leadership table where no one is taking ownership.
How can your prospects be clear about your value if you are not?
Mistake Manifests
The June board meeting was meant to be the final blessing for engaging LOCC. Dan met with each board member individually gaining their vote for the six figure consulting project and the SOW.
After the board meeting Dan called. The board opted instead to address one element of the proposal at a reduced cost for a shorter term. I respectfully declined.
“Dan,” I explained, “if I do what they ask, it will not fix the problem. And in 2 months, when the issue is still plainly visible, who is held accountable? Me – so they let me go for a failure they set me up for. I’m not playing that game. But I will call them in three months to see how it’s going.”
My Screw Up:
Had they brought in McKinsey, BCG or Bain – they would have paid for every step, every hour, every interaction. And they would have gotten the same or similar output and recommendations.
Out of friendship, I performed the same deep dive any one of those firms would do – at no charge.
The result? The board did not regard the insights, observations and the recommendations provided as “valuable” because it cost them nothing.
Epilogue:
The company attended Dreamforce under the aegis of the founder (wearing orange sneakers). Zero leads were generated. In October, the board brought in a new CEO. This new CEO now faces zero pipeline. Literally no prospects on the horizon.
To make the quarter (again, critical for the PE investment), the decision was taken to lay off staff starting with Dan. Big comp package goes first. A clear attempt to save their way to a profit.
It won’t work. That is THEIR mistake.
I did not charge for the in-depth interviews conducted and the report/SOW fashioned as a result. My fault.
Parroting their own words back to them could not sway them to take the necessary action. Their blind spot.
We’re still watching this unfold and I have a guess as to how it will end – what’s yours?
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