I agree, however, I look at Dirk's LinkedIn and don't see any significant experience in a high level leadership position. I have worked with clients where staff have been promoted to senior levels but retain an operational mindset because they have been working in an operational capacity for such a long time. One example comes to mind of a CIO that we deemed unfit for the role he was in. Spent all of his time putting out fires and addressing problems but no time spent figuring out the long-term direction.
I don't presume to understand Dirk's capability on a personal level, but I suspect that his line of thinking would have been very operational considering he was leading AJX's sales team. His point of view might have been:
- Find all accounts where revenue < cost of goods sold.
- Eliminate those accounts.
I would expect a quality strategic thinker to approach it in a different manner.
- Find all accounts that do not align to strategic objectives (i.e. the three cornerstone initiatives).
- Assess profitability of these accounts.
- Assess the value in redirecting resources to strategic initiatives (money spent on sales staff, flights, conferences, wining and dining clients, creating industry contacts, etc.)
- Determine the profitability benchmark wherein the cost of servicing those accounts is less than the net income of the account (e.g. 10% profitability).
- Cull all accounts below the benchmark level (so even some minor profitable accounts would go).
- Redirect resources and/or down-size staff.
Considering how many clients I've worked with that have a very poor level of strategic oversight into their operations, I wouldn't be surprised that the initial culling of accounts was not a holistic diagnosis of the business. I've worked with billion-dollar market cap companies that have been around for decades who don't even have this under control, let alone a messy startup.
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