Nothing is more rewarding than seeing a company take your advice, make a few changes, and watch everything start to click into place.
Because let’s face it: even companies with great products can hit a wall if their sales and marketing teams are out of sync. It happens more often than you’d think, and the reasons behind it aren’t always obvious.
That’s precisely what happened with a company I worked with recently; let’s call them “Company A.” They reached out for help because their revenue numbers were stuck despite generating what seemed like a mountain of leads. They were putting in the effort. The original problem statement was “we have too many leads” (sounds too good to be true!!), but the results weren’t coming.
The Real Problem Underneath
When I started digging in with Company A, it was clear there was a lot of hard work happening but little impact. Marketing was churning tons of leads and feeling great about it, while sales were frustrated because most of those leads weren’t converting. Leadership/board was caught in the middle, scratching their heads and wondering why there was no revenue lift when the problem statement was “we have too many leads.”
Step one: "The Root Cause Reset" is a fresh approach to reframing one's thinking from the assumed problem to the real problem.
Here’s what we uncovered after some serious diagnostics:
- Chasing Volume Instead of Quality: The company was obsessed with numbers, thinking more leads would fix everything. But most of these leads weren’t qualified, and sales were drowning in dead ends. The real problem wasn’t how many leads they had but whether they were the right leads.
- No Clear Priorities: Marketing and sales were both super busy but without a clear plan that tied their efforts together. Marketing just cared about filling the pipeline, while sales needed a real strategy for which leads to prioritize. It was chaotic.
- Misaligned Focus: Both teams were tackling different problems. Marketing was all about top-of-funnel growth, assuming it was a conversion issue, while sales didn’t even realize the process issue they had. There was no organization for lead flow. The lack of a shared goal meant everyone ran fast but in different directions.
Finding Clarity and Focus
Once we understood what was going wrong, the next step was simple: get everyone on the same page. Here’s what we did:
- Clarity on Activities: We stopped the chaos of “more is better” and focused on getting more ICP leads. Marketing started thinking more about quality than numerical numbers, what I’d call “less marketing,” tailoring their campaigns to attract higher-quality prospects, and sales got a plan for which leads to go after first.
- Clarity on Outputs: We shifted from separate metrics to shared goals. Instead of marketing patting itself on the back for lead volume, we looked at lead quality and conversion rates together. Now, both teams were working toward the same outcomes.
- Clarity on the Core Problem: We made sure everyone understood the real challenge: it wasn’t just about filling the pipeline but about making there were leads with higher intent, more aligned to the right ICP, with processes to organize good-quality and poor-quality leads in the funnel. Once everyone understood this, the teams started collaborating instead of pointing fingers.
The Transformation
In just three months, things turned around in a big way:
- Better Process, Results: Sales started closing more deals because they worked with leads in a more defined structured qualification process. The lead-to-opportunity conversion rate shot up.
- Shorter Sales Cycles: Because the leads were better qualified, the time it took to close deals dropped by 20%. Sales reps were spending their time wisely instead of chasing lost causes.
- More Predictable Revenue: With precise goals and more efficient processes, the company's revenue became more predictable. The leadership team could finally see the light at the end of the tunnel.
And here’s the best part: it wasn’t just about the numbers. The teams were happier, communication improved, and everyone felt more confident about the company’s direction. When you get the basics right, the rest falls into place.
How to Implement "The Root Cause Reset"
- Identify the Real Problem
Analyze your sales and marketing to pinpoint the core issue holding you back—poor lead quality, misaligned messaging, or inefficient handoffs. Is it a pipeline problem or a messaging problem? - Align on One Clear Goal
Get your teams on the same page with a shared objective that directly addresses this problem. Make it your North Star for the next 90 days. - Simplify and Focus
Strip away any unnecessary activities—zero in on what will solve the root issue, and stick to that plan without adding distractions.
Commit for 90 Days, and stay disciplined. Resist old habits, focus on the fix, and watch how much progress you can make when everyone is aligned.
Why This Matters
Having an objective perspective can be a game-changer for investors dealing with slow or stalled progress in a portfolio company. Often, the problem isn’t a lack of effort but a lack of knowledge of the “root cause” of the issue.
Change happens when you identify the root cause, align the team around a clear goal, and work together to fix it. It sounds simple, but executing this well is challenging; it needs a push.
The takeaway from Company A is that genuine change comes from focused, deep thinking into “root causes.” It’s not about doing more; it’s about doing the right things together. When a company achieves this clarity, growth speeds up, and the path forward becomes more transparent for everyone involved.
