How We Reorganized Our Entire Post-Sales Organization

Customer Success Organizational Structure June 23, 2016

Before we begin… We will be recording today’s webinar and will email you the

slides within 24 hours after the webinar concludes.

If you have questions about today’s content, feel free to ask them in the question box on the right hand side of your screen.

We will answer them live in our Q & A session

Object ives of Today’s Webinar

1.  Share the story of Gainsight’s recent re-organization in post-sales

2.  Share a re-usable methodology for defining your organizational structure

Caveat: May not be universally applicable

Gainsight Community

• Platform where customers and Gainsight experts share ideas, learn best practices, solve problems, and help influence the product roadmap

• Our Community includes more than 1000 users and 1,700+ conversations (and growing!)

• Community.gainsight.com/

What is Gainsight’s new organizational structure? What’s the ROI of this Customer Success Organization? How do you define its organizational charter? What are some examples of charters?

Agenda

Gainsight Customer Success Organizat ion

Customer Success Services Support

CEO

Client Outcomes

Customer Success

Technical Success

CEO

Onboard-ing

Principles for New Organizat ional Structure

1.  Customer Success comes first 2.  Design the organization around customer needs 3.  Ensure autonomy 4.  Clarify for our customers who to go to for what 5.  Maximize coordination among post-sales teams 6.  Give more responsibility to high-potential leaders

Map to 3 Customer Needs

Outcomes Management Fast Time-to-Value Solutions On Demand

Translate business objectives into ROI

Lead a structured process to achieve

quickly a set of initial business objectives

Tackle inbound customer challenges

Client Outcomes Onboarding Technical Success

Functions by Department

Client Outcomes Onboarding Technical

Success

Internal Training &

Enablement

• CSMs

• CS Sales

• Project Managers

• Solutions Architects

• Training

• Support

• Customer Success Architects

• Community

• Training on the product + other skills

• Skills assessment + certification

Customer Success

Operations

• Cross-functional process design

• Gainsight

administration, analytics, + reporting

• Maintenance

operations

Customer Success


Agenda

Revenue Attr ibutable to Cl ient Outcomes

1.  CSM “Save” •  Red to Yellow

2.  CSM “Win” •  Yellow to Green

1. CSM “Win”

2. CSM-qualified leads (CSQL) for Sales

3. CSM closes upsell

4. Conversion of POC

1.  CSM Qualified Advocacy (CSQA)

2.  Sales References

3.  Referrals

4.  Repeat Purchaser

5.  Advisory Services

Retain Expand Land + +

Revenue Attr ibutable to Onboarding

1.  Onboarding “Save” •  Red to Yellow

2.  Onboarding “Win” •  Yellow to Green

1. Onboarding “Win”

2. Onboarding-qualified lead (e.g. product add-on)

1.  Onboarding Qualified Advocacy (CSQA)

2.  Services Revenue


Revenue Attr ibutable to Technical Success

1.  TS “Save” •  Red to Yellow

2.  TS “Win” •  Yellow to Green

1.  Services Revenue


1. TS “Win”

2. TS-qualified lead (e.g. Managed Services, product add-on)


Agenda

Crit ical Components of a Charter

1.  Mission of the function in 1 sentence 2.  Operating metrics that define success for this function 3.  Cost metric that determines how to budget for this

function 4.  Activities that allow the function to achieve its mission 5.  Risks to the mission that the function needs to manage 6.  Dependencies on other teams

Mission

1.  Address a need that the customer has -- not a need that your company has

2.  If you can’t clarify the mission in 1 sentence…

Operat ing Metr ics

1.  The vast majority = not financial metrics

2.  Not enough to track activities

3.  Choose operational metrics that: 1.  Are predictive of the ultimate financial outcomes 2.  Help measure the success of day-to-day activities 3.  Are important from the perspective of your CEO...with a little

education from you :)

Cost Metr ic

1.  Help determine whether your current investment in this function is reasonable

2.  Caveat #1: Allocate cost flexibly (talk to your finance team)

3.  Caveat #2: Some teams don’t lend themselves to cost metrics – e.g. Customer Success Operations = more like a capital expenditure

1.  How much are you’re willing to invest for the long-term? 2.  Consider your first CS Ops hire once you have ~5 CSMs

Activi t ies

1.  Document exactly what you expect each role to do

2.  Do a time analysis of each role – shows overlaps and gaps

Risks

1.  All the things that can go wrong as you try to achieve your mission

2.  Non-CSM departments manage risks, too

Dependencies

1.  Ask each function: What do you expect other functions to do in order to help you achieve your own mission?

2.  Add Function A’s “approved” Dependencies to Function B’s list of Activities

Charter Template per Funct ion

Mission

Operating Metrics

Cost Metric

Activities

Risks

Dependencies

Tips for the Charter Defini t ion Process

1.  Analysis 1.  Ask “why?” 5 times 2.  Rigorously eliminate areas of overlap

2.  Implementation 1.  Decide what’s best for your customers and your company, then

figure out how to optimize careers for individuals 2.  “Pre-wire” group meetings by meeting with individuals for whom

the topic may be sensitive 3.  Share a function’s charter with the corresponding team before

sharing it with everyone else


Agenda

Mission Translate business objectives into real change and ROI for the client

Operating Metrics

Renewal: -  Habits Scorecard Measure: Net # of clients moved into Green -  Executive Adoption Scorecard Measure: Net # of clients moved into Green -  CSAT -  # of Success Plan Objectives Closed -  Movement to higher Value Stages -  # of Saves

Expansion: -  Deployment Scorecard: Net # of clients moved into Green -  CSM-qualified upsell opportunities -  # of POCs converted

New Business: -  # of Sales References -  # of Case Studies -  # of Events as speaker -  # of Prospect Meetings that the CSM joined and after which the prospect signed a deal with us -  # of Opportunities generated through Referrals -  # of Opportunities where a stakeholder came from a current (happy) customer

CSMs

Cost Metric $ of fully loaded CSM cost / $ ARR managed

Activities -  Align with Executive Decision-maker and conduct activities to drive that relationship -  Strategy Sessions: kick-off meetings for new customers where we identify the customer’s

business objectives and "success criteria" for onboarding -  Drive to alignment across multiple stakeholders at the client -  Use Success Plans to define, drive, and demonstrate value to the customer -  Conduct Train the Trainer Sessions -  Conduct Best-Practice Workshops -  Quarterback cross-functionally within Gainsight, on behalf of the customer -  Executive Business Reviews

Risks -  Renewal Risk -  Habits Risk -  Deployment Risk: the risk of downsell because a small percentage of licenses have been

deployed -  Sentiment Risk -  Company Risk -  Requests from the customer for contract extension, breakage, other alteration

CSMs

Dependencies •  On the Onboarding department, for ensuring the customer’s Gainsight administrator is 100% ready to own their Gainsight configuration after onboarding. Specifically:

•  Onboarding Solutions Architecture, for providing documentation of the customer’s instance for the Gainsight administrator

•  Onboarding Training, for providing Admin 101 training

•  On Onboarding Project Management, specifically, for: •  Fleshing out detailed use cases for the customer and ensuring that these align with the

customer’s expectations •  Delivering a detailed project plan that the customer has agreed to •  Providing weekly updates to the Decision Maker and Adoption Champion (mid-level

manager) at the customer on project status •  Leading technical implementation meetings with the customer •  Running internal meetings to prepare for customer conversations about onboarding •  Escalating risks to project timelines internally and to the customer as soon as the Project

Manager identifies an issue •  Providing information about the ways in which the customer’s business objectives were

addressed during onboarding

CSMs

Dependencies (continued)

•  On Onboarding Training, for: •  Providing instructors to lead Gainsight administrator and end-user training programs •  Providing training materials and leave-behind job aids for end users and their managers

(Adoption Champions)

•  On Customer Success Architects, for helping customers with additional configuration of Gainsight after onboarding (assuming there is no statement of work, in which case our Onboarding organization handles the new project)

•  On Support, for handling break-fix and how-to questions

CSMs

Mission Help customers with new configuration after onboarding, quickly and to customers’ satisfaction.

Operating Metrics

•  Time to resolution •  % of tickets resolved in < 8 biz hours •  % of tickets resolved in < 5 business days •  % of tickets resolved in < 10 business days •  % of tickets with SLA breaches •  Average time to resolution

•  CSAT •  # of Knowledge Base articles published

Cost Metrics •  Gross margin for managed services (when the customer outsources administration of their Gainsight instance to us)

•  Leading metrics for gross margin: •  Billable Utilization per person: % of hours spent on billable activities •  Productive utilization per person: % of hours spent on productive activities (including improving

our processes or content)

Activities •  Provide net-new configuration post-Onboarding -- either configure it for the customer or show them how to configure

•  Execute statements of work after onboarding that require less than 50 hours. (SOWs with more than 50 hours are handled by the Onboarding team.)

•  Provide managed services

Customer Success Architects

Risks •  Configuration Risk: when configuration is taking longer than expected or is bumpy •  Data Risk after onboarding •  Requests to alter the Managed Services contract

Dependencies •  Onboarding department, for setting up a proper configuration and training the Gainsight administrator on their instance

Customer Success Architects

Child-like Joy

©2015 Gainsight. All Rights Reserved.

Allison Pickens VP of Customer Success &

Business Operations, Gainsight

[email protected]

@PickensAllison

Weekly Blog: http://www.gainsight.com/customer-success-best-practices/

How We Reorganized Our Entire Post-Sales Organization

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