In today’s rapidly evolving technology landscape, leaders of IoT and tech companies face the critical challenge of effectively managing their go-to-market (GTM) function. While operational performance management is important, strategic performance management takes the spotlight when it comes to achieving unified GTM goals. This article will delve into the key points of strategic GTM performance management and how it drives cross-functional alignment, ensuring the successful implementation of a unified GTM strategy.
Strategic Performance Management vs. Operational Performance Management:
At the strategic level, the focus shifts from individual operational aspects to the holistic view of the business working together in a unified GTM effort. The key question here is whether you have a cross-functional GTM strategy that the entire organization is implementing in alignment. Strategic performance management is providing the framework for operational execution and looks at two things: creating the environment for successful operational execution and the top four to five KPIs that are most important to monitor. What these KPIs are depends largely on the maturity of the business, the nature of the business model and market dynamics.
Linking Key Elements for Alignment:
To ensure that every key GTM area is moving in the same direction, it is helpful to look at the five core areas individually and define how they together implement a strategy that will be executed by operational sales and marketing functions.
1 Positioning:
A clear competitive market positioning that can stand on the shoulders of your vision, mission and purpose is supported by effective messaging has been for a specific target market. This ensures that your offering stands out in a crowded market space and resonates with your target audience in a function and emotional way. Total clarity about competitive strengths which meet buying preferences is needed to out-position alternatives and create a confident sales environment. For example: if your positioning emphasizes product reliability, this would have a direct impact on your Product/Market fit objectives.
2 Product/Market Fit:
The product development/ marketing plans are fully aligned with buyer needs and measurable return on investment outcomes. This means that your product or service solves a real problem, that is worth solving. Understanding what the “whole product” is that a target customer would require is essential to access the market. For example, an IoT device on its own is not a total solution, it requires connectivity, data services, consulting, engineering , subject matter expertise and more to make a viable customer solution. This is broader than product engineering per se and takes a GTM view into account that asks the question “how easy is it for your target customer to buy, implement, integrate and maintain your product”. Staying with the example above: an IoT device that has been engineered for reliability, may require middleware to become a real consideration for your target audience.
3 Business Objectives:
The top three business objectives are clearly defined, and it is crucial to understand how different departments contribute to achieving these objectives. A revenue objective is not only owned by sales. It is also owned by product readiness, marketing support and customer service functions. This aligns the organization’s efforts towards shared goals and fosters collaboration across functions. A simple example might be: to have enough runway for sales pipeline building the product must be in market supported by a customer testimonial by a certain time.
4 Marketing Strategy:
At the highest level the strategy must articulate the artform of marketing. How to access opinion builders, influencers and relevant bodies with the right content through the right medium and create the vision of what your business “will to be known for” to attract the ideal customer or partner profile. At a strategy level, the buying and selling cycle, along with conversion objectives, are mapped out. Without this strategic level input, the operational execution will be fragmented and ineffective at campaign execution level. A good example is to have clear messaging aligned with buyer persona. It would look very different if you go for mass market driven by volume/price (typically a product sale) or niche specialist markets driven by value/performance (typically a solution sale).
5 Channel to Market:
The ideal sales channel type, profile, and value proposition have been identified and validated. By understanding the most effective channels to reach your target audience, you can ensure efficient and successful distribution, leading to increased sales. In addition to defining the ideal sales channel, the strategy planning process must validate assumptions such as availability of skills in market or indirect channel accessibility and competitiveness. A good example is to create a strategic partner program if indirect channels are considered that makes your proposition commercially and operationally attractive.
Driving Cross-Functional Alignment:
To effectively manage strategic GTM performance, it is essential to bring together the owners of each area in a collaborative setting so the mutual dependency is understood. GTM is a team sport. The objective is to ensure that every function supports the common goal and cooperates seamlessly. In this unified setting, key leading indicators are identified and monitored by each function to support the other four areas. By aligning their efforts and reporting on these indicators, the organization can navigate towards achieving its growth objectives successfully.
Conclusion:
Strategic GTM performance management demands a comprehensive understanding of each key GTM area and how they interconnect. Viewing these areas as a cohesive whole allows leaders to align their teams, establish clear objectives, and drive cross-functional collaboration towards shared GTM goals. By monitoring critical indicators, often in form of deliverables and focusing on strategic performance management, IoT and tech companies can position themselves for optimised operational performance, where targets such as lead, conversion, sales revenue are set and monitored.