PE Portfolio Company Turnaround Playbook (GTM/Commercial Focus)

 

My notes on a practical PE Operator’s Turnaround Playbook for a portfolio company that’s underperforming (was healthy before, now slipping). This assumes the core product/market fit is intact, but commercial execution and cost discipline have weakened.

This isn’t slash-and-burn. It’s about rebuilding commercial discipline: the right leader in the CRO seat, a healthy and well-inspected pipeline, reps held accountable with coaching/support, and costs kept aligned with growth.

 

1. Leadership & Organization

  • Assess CRO / Sales Leadership Performance
    • 360° review (CEO, team feedback, peers, results vs. plan, can also include board)
    • Diagnose if issues are strategy, execution, or leadership capability
    • If misaligned, decide quickly: coach, augment with new hires, or replace
  • Evaluate Org Structure
    • Span of control, territory design, coverage vs. whitespace
    • Check if too top-heavy or if reps are “carrying” managers

2. Pipeline Creation & Coverage

  • Pipeline Audit
    • Current pipeline vs. coverage model (e.g., 3–4x next quarter’s quota)
    • Validate pipeline quality: stage accuracy, deal hygiene, conversion ratios
    • Segment pipeline by product/vertical/rep → identify leakage points
  • Lead Generation
    • Evaluate demand gen channels: inbound, outbound, partner, events
    • Benchmark cost per SQL vs. industry norms
    • Plug gaps with targeted lead-gen sprints (ABM, outbound cadences, partner push)

3. Sales Process & Discipline

  • Sales Process Audit
    • Is there a clear, repeatable methodology (MEDDICC, SPIN, etc.)?
    • Are stages well-defined with exit criteria?
    • Are managers enforcing pipeline inspection and deal reviews weekly?
  • Enablement & Tools
    • Check CRM data hygiene, usage, and reporting accuracy
    • Evaluate if reps are properly trained, ramping, and enabled with content / tools

4. Individual & Team Performance

  • Rep Performance Distribution
    • 20/60/20 rule: top, middle, bottom performers
    • Quickly address bottom 20% (performance plan or exit)
    • Double down on coaching/enablement for the “middle 60%” (biggest upside)
  • Quota & Territory Alignment
    • Are quotas realistic vs. TAM/territory potential?
    • Is there imbalance in opportunity distribution?

5. Customer Success & Retention

  • Churn Analysis
    • Lost logos and expansion rate by cohort
    • Patterns in why customers leave (price, product gaps, support)
  • Renewals / Expansion
    • Evaluate customer success coverage ratios
    • Install proactive renewal process (90–120 day renewal playbook)

6. Cost & Productivity

  • Cost Monitoring
    • Tighten T&E, discretionary marketing, and low-ROI spend
    • Review vendor stack (MarTech, SalesTech) for duplication
  • Productivity Metrics
    • Sales efficiency (ARR per rep, CAC payback, pipeline created per SDR)
    • Gross margin and contribution margin per deal type

7. Governance & Cadence

  • Operating Rhythm
    • Weekly sales leadership review (pipeline health, forecast accuracy)
    • Monthly board-level KPI review (ARR growth, NRR, CAC payback, sales efficiency)
  • KPIs to Watch
    • GRR, NRR, pipeline coverage, win rate, CAC payback, sales efficiency (ARR/OpEx), quota attainment %

8. Quick Wins vs. Structural Fixes

  • Quick Wins (0–90 days)
    • Replace/augment weak reps
    • Clean pipeline hygiene and enforce stage discipline
    • Launch targeted demand-gen sprint to refill pipeline
    • Cost freeze on non-critical spend
  • Structural Fixes (3–12 months)
    • Redesign sales process and training
    • Reset comp plans to align with profitable growth
    • Rebuild leadership bench if CRO/VP Sales misaligned
    • Institutionalize quarterly business reviews with sales team

 

 

Bonus: “100-Day Sales Turnaround Plan” for GTM/Commercial

Phase 1: Stabilize & Diagnose (Days 0–30)

Objectives: Get control of leadership, data, and pipeline health

  • Leadership Assessment

    • 1:1 with CRO and key sales managers
    • 360° review of CRO performance (board, peers, reps)
    • Decide: support vs. augment vs. replace

  • Data & Forecast

    • Audit CRM data hygiene and forecasting accuracy
    • Rebuild baseline pipeline view: coverage ratio (3–4x quota), win rates, cycle length

  • Team Performance

    • Rank reps (top/mid/bottom 20%)
    • Put underperformers on 30-day performance plans
    • Shadow calls to assess skill gaps

  • Cost & Discipline

    • Freeze non-critical T&E and marketing campaigns
    • Vendor/software stack review (eliminate duplicates)

Phase 2: Reset Pipeline & Process (Days 31–60)

Objectives: Strengthen lead flow, enforce sales discipline, rebuild momentum

  • Pipeline Creation

    • Launch demand-gen sprint: outbound campaigns, ABM, partner push
    • Align SDRs with best-fit verticals/accounts
    • Weekly inspection of SDR productivity (meetings, SQLs)

  • Sales Process Reset

    • Define/reinforce methodology (MEDDICC, SPIN, etc.)
    • Enforce stage exit criteria in CRM
    • Weekly deal reviews led by CRO/VPs

  • Coaching & Enablement

    • Retrain managers on pipeline inspection and forecast discipline
    • Run enablement sessions for “middle 60%” reps
    • Introduce call recording/AI coaching tools for feedback

  • Customer Success

    • Audit top 20 renewals due in next 6 months
    • Install 90–120 day renewal playbook
    • Track expansion opportunities (upsell/cross-sell)

Phase 3: Drive Accountability & Execution (Days 61–90)

Objectives: Lock in discipline, improve efficiency, set up for sustainable growth

  • Leadership

    • If CRO misaligned, transition to interim/upgrade candidate
    • Redefine sales management cadence: weekly pipeline + monthly QBRs

  • Quota & Territories

    • Rebalance quotas to match TAM/territory potential
    • Redesign territories to reduce overlap and increase coverage efficiency

  • Comp & Incentives

    • Reset sales comp plans to reward profitable ARR (e.g., higher weight on multi-year or prepaid deals)
    • Tie CS bonuses to retention/NRR outcomes

  • Governance & Metrics

    • Weekly: pipeline health (coverage, aging, stage progression)
    • Monthly: ARR growth, GRR/NRR, CAC payback, sales efficiency (ARR per $1 of S&M)
    • Establish “red-flag dashboard” for early warnings (slipping deals, low pipeline, churn risk)

Quick Wins (0–90 days)

  • Remove/replace bottom-performing reps
  • Enforce CRM discipline + pipeline hygiene
  • Generate immediate pipeline via outbound blitz
  • Freeze discretionary costs

Structural Fixes (3–12 months)

  • CRO leadership upgrade if needed
  • Institutionalize zero-based budgeting for S&M
  • Build repeatable renewal/upsell motion
  • Introduce AI/RevOps automation for forecasting & coaching