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The Deadly Mistakes That Wholesale Subsea Cable Providers Make: Part 2

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 4. The star-shaped organization model defines each department by function such as sales, provisioning, procurement, network operations and the like and has it directly report to the COO or CEO. Each department has a large degree of autonomy and independence which encourages kingdom building and departmental bickering.  We improve cooperation by recognizing that accountability requires some departments be subordinate to others. For example, procurement falls into two categories: backbone and the customer driven requests where a third party component like a long haul circuit, metro dark fibre pair or a local loop is required. Third party sourcing for customer driven requests should in the sales department. I know salesmen at one European carrier that source their own off-net requirements because procurement takes to 2 to 6 weeks to do it. Once a verbal yes is received, the salesman then points procurement to the third party offer. If sales determined the compensation and perfor...

Ten Modest Proposals For Making Subsea & Wholesale Carriers Profitable Again - Part I

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Pay salesmen low salaries and 5% to 10% of on-net revenue. A good salesman does not need a high salary. He or she achieves high income by selling. It is what they enjoy doing. This is the standard Wall Street broker compensation package. New brokers end up sharing apartments with lots of other brokers and commuting from New Jersey. Real sales meritocracy is pay for performance.  Profits are not maximized by paying a high salary combined with low commission rates, and high quotas. It simply creates huge staff turnover as people charm themselves into a high paying job, produce only one or two deals over their first six to 12 months, and then jump ship just before they are going to fired. I have seen it happen time and time again. The empty suit charmers. The resume red flag is a sales guy or gal moving from carrier to carrier every 1 to 2 years. The resulting churn from these bad apples dramatically lowers sales revenue per employee. Plus it rewards a few select salesmen who were luc...