Michael Katz
June 6, 2023
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4 min read
It's been a challenging year for the tech industry, with widespread layoffs, economic headwinds, and bank failures impacting companies across the board. But amidst all the chaos, a key leak from Salesforce CEO Marc Benioff went unnoticed by 99% of us. It sheds light on an issue that almost every company is facing, but that most leaders are ignoring.
As the founder of the fastest-growing enterprise software company of all time – now serving over 150k companies – Benioff has one of the most strategic vantage points of any CEO in the world. However, even Salesforce has faced economic headwinds, resulting in the need to cut more than 10% of their team - 7,000+ employees. Like many other companies, Marc has cited below average productivity from folks hired in the past few years.
But his diagnosis is different.
While other leaders are prescribing old solutions to new productivity problems, such as "better sales process," "more training," and "more coaching," Benioff is realizing that the landscape has changed – remote is now the norm and tenures are shorter. Relying on old solutions alone will leave gaping wounds.
In a leaked company-wide Slack message, Benioff asked a question that shed light on his diagnosis: “Are we not building tribal knowledge with new employees without an office culture?”
This is a critical issue for every company, and it's especially important for revenue teams.
It’s worth taking a second to think about this in the context of Benioff and Salesforce. His company:
It’s become so bad that they’re reversing many remote work policies - and even shuttering a remote work research group – to stem the bleeding.
If this is an issue for Salesforce, it’s likely even worse for most other companies. Current training methods and sales processes are unable to solve these destructive tribal knowledge silos, and important knowledge isn’t making its way to the people who need it most.
Put simply, employees don’t have the tools to execute in an evolving market.
When most people think of “knowledge management”, they think of docs, wikis, and content systems with process &resource guides. But this isn’t the “tribal” knowledge that your teams are missing.
The important tribal knowledge is the experiential knowledge that frontline employees gain on a daily basis through customer and prospect interactions, such as:
It's the knowledge that powers the success of a company’s founders and best employees, and that every employee needs to win. But without a clear system and process to capture and disseminate this information, it gets lost. Every employee must fend for themselves or at best, rely on their immediate team.
The circumstances driving tribal knowledge siloes are more acute than ever – lower employee tenure, remote-first work, less time with accounts, and more organizational change.
And the consequences are severe.
So, what can leaders do about it? Before training on the newest release or forcing more unsuccessful prospecting, they need to figure out their tribal knowledge strategy.
We’ll cover more of this in future posts, but there are a few key components for every leader to think about if they want to stop their brain drain and fix productivity issues:
By taking these steps, leaders can stop the brain drain and fix productivity issues, while codifying the blueprints and stories behind their deals and successes.
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