In the business world, there's a common perception that smaller players can't influence the actions of industry giants. However, my experience demonstrates a different reality. As an outsider, I successfully convinced a top five IT company to sell a business unit that wasn't even on the market. Surprisingly, persuading the industry giant to OEM the divested product proved more challenging, despite similar hierarchical hurdles.
This journey shows that a small company, or even a lone outsider, can be a catalyst for change. Creating a movement in a large organization often brings about change, a challenge even for internal employees. This article shares the lessons learned throughout this process, hoping to serve anyone in a similar underdog position. With determination and a basic strategy, even the most formidable industry giants can be influenced.
This isn't a professional guide but a personal narrative of my journey within a vast corporate entity, aiming to inspire and enlighten those curious about engaging with large corporations. Many have encouraged me to document my experiences. If my insights into navigating a large, technical organization can assist anyone just starting out, I'm pleased to have dedicated my time to this endeavor.
My role, while comparable to a lobbyist, encompassed a broader range of activities, highlighting the significant influence an individual can wield in such environments. This narrative is particularly beneficial for individuals beginning to explore corporate relationships, as it presents a practical example that might guide their initial steps. It's a story of one person's journey, aiming to motivate others as they contemplate their approach to engaging with large corporations.
An essential aspect of this experience was understanding the audience, namely the various divisions and departments within the corporation. Not every group was approached with the same strategy or for the same reasons. Engaging with corporate executives required a distinct hierarchy with a more strategic focus. What was advantageous for the company overall wasn't necessarily beneficial for the individual departments and decision-makers involved.
To clarify the roles of "me" and "we": I began as a consultant and later became an employee of the buyer a few months before the deal closed. "We" refers to both me and a skilled buyer who was invaluable in this process. The buyer provided coaching, and actively contributed to the deal. While I took the lead in creating the opportunity and moving it forward, the buyer's executive leadership handled the finalizations. Each time the deal hit a snag or required a strategic push, I stepped in.
Interestingly, I had previously worked for the seller, a large IT firm, about 17 years ago. While my history with the company offered some initial advantages, the key players had changed over the years, and many of those I once knew now opposed me.
Persuading the company to consider selling the product group, which included assets, the engineering team, and customers, required diverse sales tactics. The company itself used this product for essential internal applications.
Honestly, the strategy evolved organically through sheer perseverance. I faced both support and opposition. Sometimes, I led initiatives; other times, I followed clues from the seller's sponsors, ranging from directives to subtle hints. Effort can take you a long way, and some personalities appreciated the effort and challenge.
Echoing a seasoned sales manager's words, "He who is present wins," I prioritized attending as many company gatherings as possible. This proved crucial, fostering deeper connections with executives in informal settings, allowing us to bypass the corporate facade through casual conversations, meals, or drinks.
While this article focuses on persuading a company to sell a product line, the techniques employed can be applied in other business contexts. This includes initiating or strengthening partnerships, marketing and selling products and services within a large corporation or driving any desired change. After acquiring the product line, we embarked on a challenging campaign to persuade the company to resell the acquired assets (OEM). This task proved just as difficult as the initial effort, as we faced new decision-makers and significantly more opponents than supporters. The resistance was particularly strong because this move introduced competition within another more mainstream product group.
Large corporations are intricate ecosystems. Inside, diverse divisions, business units, and specialized departments hum with activity. Each level of management and individual plays a role, driven by both corporate goals and unique motivations.
Competition sparks within these organizations. Units vie for resources, sometimes unaware of each other's maneuvers. Individuals can wear dual hats, collaborating and rivaling simultaneously. This intricate web creates both challenges and opportunities for outsiders.
By understanding these internal dynamics, external parties can influence and drive change. Spotting opportunities and building internal support unlocks doors for acquisitions, improved sales strategies, and solidified partnerships. Persistence and persuasive prowess may be your key tools.
Our biggest takeaway: being outsiders wasn't a limitation but an advantage. Our external position granted us a kind of "diplomatic immunity," allowing us to bypass traditional hierarchies and drive change in ways often inaccessible to insiders. This exposed some managers to fresh insights and perspectives about different business units – perspectives they might have missed due to internal boundaries.
A crucial lesson learned was the importance of understanding the protocols and procedures large corporations use for external interactions. However, rigidly adhering to these protocols wasn't always the best approach. Sealing this deal demanded strategic improvisation. It involved building relationships, comprehending the dynamics of diverse business units, and analyzing their unique compensation structures. We identified gaps in their product offerings that we could potentially fill more effectively than the existing product group within the selling company.
The seller's company was embroiled in an internal power struggle, and the group we wanted lacked a strong champion. Recognizing this, we engaged deeply to push the deal forward.
Joining the partner program proved invaluable. It granted us access to crucial employee contact details and subtly bolstered our credibility by making us part of the company's extended network. While we were assigned a partner manager, our goals diverged from his role.
We employed a blended top-down and bottom-up strategy, primarily targeting middle management who functioned as key gatekeepers. Direct engagement with the product team was smoother compared to navigating higher levels with their layers of gatekeeping. Our ultimate target, the elusive general manager of the product line, required careful maneuvering. A meticulously crafted email to the GM's administrative assistant prompted action. Two weeks later, a reply paved the way for deeper conversations. This response was pivotal, securing the support of an executive champion. Despite resistance, the momentum had shifted decisively in our favor within the upper echelons of the organization.
Top executives, intrigued by the product line's history, introduced our proposal to a wider market to spark a competitive bidding environment. Though this temporarily stalled our progress, we stayed confident and persevered towards our goal.
For smaller players, navigating the world of large corporations might seem daunting. However, understanding their internal dynamics can significantly ease your journey. This includes grasping compensation structures, political landscapes, employee motivations, and interdepartmental relationships. When different divisions lack clear alignment or openness, significant opportunities arise. Each department operates with its own goals and rewards; successful engagement often involves recognizing and respecting this mutual benefit exchange.
Leading change within a large organization might feel like starting a locomotive—slow and demanding initial effort. But just like a train, its momentum grows, becoming harder to stop as it fuels and maintains itself. The key to sustained progress lies in consistent effort and ongoing support.
In essence, building momentum for change resembles getting a train moving. The initial inertia requires significant time and energy to overcome. Once in motion, however, this dynamic gather speed, becoming progressively easier to maintain. While slowing or stopping a train (or a movement within a company) is possible, the effort increases as it gains traction and speed.
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April 16, 2024