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Tomasz Tunguz shared <a data-mce-href="https://www.linkedin.com/pulse/challenge-saas-orthodoxy-tomasz-tunguz-zpbec/?trackingId=EFeInD%2BfQ9mvVsVSH7EcXA%3D%3D" href="https://www.linkedin.com/pulse/challenge-saas-orthodoxy-tomasz-tunguz-zpbec/?trackingId=EFeInD%2BfQ9mvVsVSH7EcXA%3D%3D">a thought-provoking post</a> analyzing Klarna’s recent annncement on their plans to replace 3rd party vertical SaaS tools with internally developed AI and how that could signal a shift in the B2B SaaS orthodoxy that has driven the last 20 years of B2B SaaS development.Does this signal a fundamental change in the dynamics – the ‘orthodoxy’ - of the B2B SaaS market? Maybe, but there will be some non-trivial hurdles:<img id="nn6tneivilm2kmgh1q" src="https://cdn.durable.co/blocks/8VPM7jDYO36WUlThEUH7s6AaB7XeUUeSryNRWfrnNTSN2aqNwwhi764d2ojvnYwS.png" alt="Growth strategy busines trend concept. Businessman hand on arrow investment icon. Increase sale marketing, increase success potential, soar rocket towards wealth. Competitive business goal plan" title="Growth strategy busines trend concept. Businessman hand on arrow investment icon. Increase sale marketing, increase success potential, soar rocket towards wealth. Competitive business goal plan" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/8VPM7jDYO36WUlThEUH7s6AaB7XeUUeSryNRWfrnNTSN2aqNwwhi764d2ojvnYwS.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;" style="border-color: rgba(229,231,235,var(--tw-border-opacity)); --tw-border-spacing-x: 0; --tw-border-spacing-y: 0; --tw-translate-x: 0; --tw-translate-y: 0; --tw-rotate: 0; --tw-skew-x: 0; --tw-skew-y: 0; --tw-scale-x: 1; --tw-scale-y: 1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness: proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: var(--tw-empty,/*!*/ /*!*/); --tw-ring-offset-width: 0px; --tw-ring-offset-color: #fff; --tw-ring-color: rgba(62,172,255,.5); --tw-ring-offset-shadow: 0 0 #0000; --tw-ring-shadow: 0 0 #0000; --tw-shadow: 0 0 #0000; --tw-shadow-colored: 0 0 #0000; --tw-blur: var(--tw-empty,/*!*/ /*!*/); --tw-brightness: var(--tw-empty,/*!*/ /*!*/); --tw-contrast: var(--tw-empty,/*!*/ /*!*/); --tw-grayscale: var(--tw-empty,/*!*/ /*!*/); --tw-hue-rotate: var(--tw-empty,/*!*/ /*!*/); --tw-invert: var(--tw-empty,/*!*/ /*!*/); --tw-saturate: var(--tw-empty,/*!*/ /*!*/); --tw-sepia: var(--tw-empty,/*!*/ /*!*/); --tw-drop-shadow: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-blur: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-brightness: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-contrast: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-grayscale: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-hue-rotate: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-invert: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-opacity: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-saturate: var(--tw-empty,/*!*/ /*!*/); --tw-backdrop-sepia: var(--tw-empty,/*!*/ /*!*/); --tw-transform: translateX(var(--tw-translate-x)) translateY(var(--tw-translate-y)) rotate(var(--tw-rotate)) skewX(var(--tw-skew-x)) skewY(var(--tw-skew-y)) scaleX(var(--tw-scale-x)) scaleY(var(--tw-scale-y)); --tw-border-opacity: 1; --tw-filter: var(--tw-blur) var(--tw-brightness) var(--tw-contrast) var(--tw-grayscale) var(--tw-hue-rotate) var(--tw-invert) var(--tw-saturate) var(--tw-sepia) var(--tw-drop-shadow); --tw-backdrop-filter: var(--tw-backdrop-blur) var(--tw-backdrop-brightness) var(--tw-backdrop-contrast) var(--tw-backdrop-grayscale) var(--tw-backdrop-hue-rotate) var(--tw-backdrop-invert) var(--tw-backdrop-opacity) var(--tw-backdrop-saturate) var(--tw-backdrop-sepia); --tw-bg-opacity: 1; width: 640px; aspect-ratio: 16 / 9; object-position: center center;"><ol><li>It’s a big company model (for now). In the MongoDB example, Tomasz estimates the annual cost offset for sales to be $12-15M for a company with 1,250 people in sales. I would venture most companies with yearly budgets of even a few $M would struggle to keep parity. And that’s just 1 SaaS tool vertical among many. 2. Focus. The fact that lack of focus = failure is a truism. Instead of the leadership having laser focus on the core company mission, ICP &amp; value props, and competition, they’re now going to have to split their focus between building for external vs. internal customers. There is a reason there aren’t many companies left that look like GE in the late 2000’s. 3. Resource contention. Let’s say AI can handle most of the dev lift. There will still be people that manage &amp; support it, costs to operate it, etc. Like any company with limited resources (all of them), there will constantly be tradeoffs between investing $1 to make the AI tools better vs. bringing more customers through the funnel.&nbsp;</li></ol>For those reasons and more, I’m skeptical that this approach will become the de-facto IT strategy for the broader enterprise market. But, at the risk of contradicting myself…Let’s say instead, Klarna builds the absolute best AI-driven CRM (would we still even call it that?) ever and decides to sell it to the market before Salesforce et al. can effectively respond. What if this ends up looking more like how Twitter &amp; Slack were born vs. just a massive internal IT exercise?Companies that can harness the best talent in AI could also demolish the entire vertical construct in B2B SaaS and instead build entire AI-driven solutions around JTBD (jobs to be done) frameworks.&nbsp;For example, the JTBD for a manufacturer is to ship 10,000 widgets this year. That would entail engaging AI for:<ol><li>&nbsp;Product design 2.&nbsp; Marketing &amp; lead gen 3.&nbsp; Sales 4.&nbsp; ERP &amp; Supply Chain 5.&nbsp; Shipping &amp; Logistics 6.&nbsp; Accounting &amp; collections 7.&nbsp; Customer Support</li></ol>Rather than a company buying 7 different SaaS products from 7 vendors, they buy 1 AI bot designed specifically for manufacturing customers that manages the entire product lifecycle. AI seems to offer a feasible path toward these kinds of JTBD bots, in contrast to ‘traditional’ software dev architecture.Ultimately, I 100% agree with Tomasz that the orthodoxy of enterprise SaaS will fundamentally change because of AI. How long will it take? Who knows, but it will be fun to watch.

Is AI Eating SaaS?

This is a <a data-mce-href="https://www.fastcompany.com/91199021/an-argument-to-hire-lazy-salespeople" href="https://www.fastcompany.com/91199021/an-argument-to-hire-lazy-salespeople" target="_blank" rel="noopener">fantastic article</a>, originally published in Fast Company, from my friend &amp; colleague. <a data-mce-href="https://www.linkedin.com/in/inrevenue/" href="https://www.linkedin.com/in/inrevenue/">Justin Gray</a> at <a data-mce-href="https://inrevenue.capital/" href="https://inrevenue.capital/">InRevenue Capital.</a>&nbsp; It's particularly valuable if you’re a 1st time founder or new to leading/managing a sales team in the B2B space.TL;DR - B2B sales strategies should optimize for quality, not quantity.&nbsp; WIth a focus on relationship-driven sales, early &amp; growth stgae companies do a better job zeroing in on the right ICP, building a clear understanding of problem-solution and ultimately building customers that will deliver long term value, not just short term logo wins.And BTW, 'lazy' doesn't really mean 'lazy'.&nbsp; In this context, I interpret it to be making the distinction between working smarter vs. working harder.&nbsp; Taking a strategic approach to selling vs. just hitting activity metrics for the sake of activity.It may sound contrarian - most of the sales orthodoxy that is promoted centers on volume, activity &amp; shots on goal.&nbsp; But think about it - when’s the last time you picked up a call from a number you didn’t recognize, or respond to cold emails?One caveat I'll offer - I believe this is predominately true for companies creating new products, building new categories or generally disrupting the status quo.&nbsp; Shots on goal may still be the appropriate north star if you're selling high volume, commodity products.&nbsp;&nbsp;

The Argument for Lazy Salespeople

Bittersweet seems insufficient to describe the fact that we turned the lights out at BeckonCall this week. Dr. Jeffrey Becker and I co-founded the company in 2015, and by any measure, 10 years is an incredible run by startup standards. &nbsp;Unfortunately, we never achieved escape velocity. And so here we are.So many thoughts and emotions are rattling around my brain right now, but I want to do a couple of things with this post.First, how &amp; why did we last 10 years only to reach this point? I’ll take both sides of that question:<ol><li>&nbsp; We made it this far because we are deeply committed to the mission to improve care team communications. The Joint Commission released a report indicating that if miscommunication were classified as a cause of death, it would be the 5th leading cause in hospitals. Our commitment to that mission kept us moving forward through a ton of tough times. 2.&nbsp; &nbsp;We made it this far because we walked the talk. More than a few customers have been with us since day 1 and we’ve had ridiculously low organic churn. We have been a 24x7x365 must-have, and at our peak, we were managing communication for 10s of thousands of patients each month. 3.&nbsp; &nbsp;We made it this far because we worked incredibly well as a team. I’ve experienced the other end of this spectrum and know what it feels like to have a company torn apart by team dysfunction. We were the opposite. 4.&nbsp; &nbsp;We’re not making it any further because we didn’t/couldn’t adapt to changes in our market. BeckonCall is an SMB product for independent medical practices. Our market has contracted over the last 10 years, however, as nearly 80% of providers are now employed by Hospital Systems, ACOs &amp; PE firms. Pivoting from SMB to enterprise is difficult for even the most profitable &amp; well-funded businesses (QuickBooks, anyone?), and we were neither of those.</li></ol>To paraphrase the late, great Walter Cronkite: and that’s the way it was.Second, I want to give my sincerest gratitude to the people who volunteered to go on this ride with us.&nbsp;To the amazing founding team - <a data-mce-href="https://www.linkedin.com/in/timlytle/" href="https://www.linkedin.com/in/timlytle/">Tim Lytle</a>, <a data-mce-href="https://www.linkedin.com/in/jasonoffutt/" href="https://www.linkedin.com/in/jasonoffutt/">Jason Offutt</a>, <a data-mce-href="https://www.linkedin.com/in/kacie-donovan-00153b61/" href="https://www.linkedin.com/in/kacie-donovan-00153b61/">Kacie Donovan</a>, and <a data-mce-href="https://www.linkedin.com/in/corysmithproductmanagement/" href="https://www.linkedin.com/in/corysmithproductmanagement/">Cory Smith</a>. You took us out of the starting blocks and built what became BeckonCall. It seems trite to say we couldn’t have done it without you, but we couldn’t have. You’re all amazing. Thank you.For the wisdom and guidance generously shared by exceptional advisors, including <a data-mce-href="https://www.linkedin.com/in/thomasblondi/" href="https://www.linkedin.com/in/thomasblondi/">Thomas Blondi</a>, <a data-mce-href="https://www.linkedin.com/in/tomcurzon/" href="https://www.linkedin.com/in/tomcurzon/">Tom Curzon</a>, <a data-mce-href="https://www.linkedin.com/in/scottkweiss/" href="https://www.linkedin.com/in/scottkweiss/">Scott Weiss</a>, <a data-mce-href="https://www.linkedin.com/in/rick-lopez-76982b45/" href="https://www.linkedin.com/in/rick-lopez-76982b45/">Rick Lopez</a>, and <a data-mce-href="https://www.linkedin.com/in/andrewlombard/" href="https://www.linkedin.com/in/andrewlombard/">Andy Lombard</a>. You’re also all amazing. Thank you.To the investors who trusted us with your precious capital (and patience!), I wish the outcome were different. We are immensely grateful. Thank you.And finally, to my co-founder and brother from another mother - brother, you’ve been an incredible colleague and friend. I feel gratitude beyond words, and God willing, we’ll still be kibbitzing to each other in our 80s, complaining that our grandkids don’t call enough.And that’s a wrap. Onward.&nbsp; But before I go, I'll leave you with this.&nbsp; Because it will never not be funny.<figure id="figure-ksv4ncj0sqm2ko3nc1"><iframe id="ksv4ncj0sqm2ko3nc1" src="https://player.vimeo.com/video/89661785" class="w-full bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" allowfullscreen="" data-url="https://vimeo.com/89661785?ref=tw-share " data-corners="default" data-fullwidth="false" data-mce-src="https://player.vimeo.com/video/89661785" data-mce-style="aspect-ratio: 16/9;"></iframe></figure>

The End of an Era

TL;DR We’re still a very long way from <a data-mce-href="https://www.imdb.com/title/tt1798709/" href="https://www.imdb.com/title/tt1798709/">Her</a> or <a data-mce-href="https://www.imdb.com/title/tt0062622/" href="https://www.imdb.com/title/tt0062622/">HAL9000</a>…<figure id="figure-jrd5frpjalm2kofsva" class=""><img id="jrd5frpjalm2kofsva" src="https://cdn.durable.co/blocks/17PGEMLiiE7BvApSgOHdOl9CLD04TUNokADFicjqAqVU6BAOzeIMstWJwuGx6dnk.jpg" alt="two women sitting at a table looking at a computer screen" title="two women sitting at a table looking at a computer screen" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/17PGEMLiiE7BvApSgOHdOl9CLD04TUNokADFicjqAqVU6BAOzeIMstWJwuGx6dnk.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>There’s so much excitement and hype around the promise of AI. But how much reality is behind that promise today? While the shortcomings of current GenAI models are well documented, the hype cycle driving the AI frenzy seems to be strong enough (for now) to relegate even moderately contrarian views into the ‘you must be a Luddite’ bucket…I’m not an expert in the field, which makes me a worthy litmus test(er) for applied AI.&nbsp;I found a fractional project that caught my eye, but the gatekeeper to the project wasn’t a team or a person – it was an online assessment tool that combined IQ test-like questions with AI chatbot interactions, both prompt engineering and conversational Q&amp;A. Initially, the experience was fun - brought me back to college and the (good) stress of performing on the clock and under pressure. But…As I progressed through the tool, the site froze &amp; I was presented with a ‘white screen of death’ with an unending swirling circle. None of the typical browser tricks worked, and when I then switched to a different browser &amp; logged back in, I got a prompt that my (incomplete) application had already been submitted. Wha?Interestingly, and perhaps tellingly, there was no way to contact a human for support. Or even to submit a support ticket. Only an AI chatbot that was not particularly helpful. Or empathetic.Who knows if I would have gotten the project anyway? The point is, I never got the chance to have the conversation because…BUGS! Everyone in tech knows there’s no such thing as bug-free software – whether you’re talking about code bugs or GenAI hallucinations.&nbsp;This experience won’t change my life, or even frankly, my interest &amp; excitement for AI. But imagine if AI had been implemented this way in the cockpit of a 777. Or in a surgical robot in an operating room. Or in a weapons system on the battlefield. The outcome could be catastrophic.The point here isn’t to throw cold water on AI but to provide an anecdote to remind us where we are.To use a parenting analogy, AI is still a toddler that still requires us to care for and feed it, change its diapers, and teach it how to behave. You wouldn’t dream of putting your two year old behind the wheel of a car, so we should be mindful in the same way with our approach, adoption &amp; deployment of AI at this point in the game.PS - I’m not going to name the companies involved because my intent isn’t at all to disparage or criticize them. Also, I didn’t use AI to write this post…

I'm Sorry Dave, I Can't Let You Do That

Unless you've been living under a rock – or just don't follow sports – you've undoubtedly heard about the recent chaos surrounding Major League Baseball's new uniform saga.tl;dr: MLB worked with Nike and Fanatics to create lighter, more performance-oriented uniforms designed to showcase the players' athleticism better. But the introduction triggered immediate blowback, with complaints centered around the uniforms' transparent fabric and cheap look.It's not hard to identify just a few fundamental principles that, had they been employed, would likely have resulted in a smooth and transparent (pun intended) transition for the league and its new uniforms.<h3>Communicate Early and Often</h3>The backlash regarding the transparency of the new uniform pants stemmed primarily from a lack of clear communication. As it turns out, the new uniform pants aren't any more transparent than those worn by players for the last decade. Had MLB clarified that the pants were not more transparent than in prior years, the blowback might have been mitigated or avoided entirely.This is a highly relevant lesson for organizational leadership, emphasizing the need for proactive and honest communication during times of change. Leaders must communicate early and often, providing context and rationale for decisions to build trust and understanding within their teams.<h3>Buy-In is Critical:</h3>The uniform debacle also underscores the critical need for buy-in. According to the reporting, while a handful of players were let in on the design changes, the vast majority remained in the dark until they showed up for Spring training. Surprise! With such an unexpected departure from the status quo, the reaction across the league has predictably been "mixed to negative."<figure id="figure-4omko31ug5ltgdxy3o"><img id="4omko31ug5ltgdxy3o" src="https://cdn.durable.co/blocks/28qlFTA9QnKENB9MyKbMD1PkarFap80MUBn7bm7zCi1HplmjE8IA3sTb91GSatxC.jpg" alt="two women sitting beside table and talking" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="Source: MLB" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/28qlFTA9QnKENB9MyKbMD1PkarFap80MUBn7bm7zCi1HplmjE8IA3sTb91GSatxC.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"><figcaption class="body-normal text-gray-500 mt-2">Source: MLB</figcaption></figure>Leaders can champion change, but success lies in securing widespread support within their teams – regardless of whether it's maintaining the status quo or navigating new market dynamics. The MLB's misstep serves as a reminder that even well-intentioned changes can face resistance without the necessary buy-in from those affected.<h3>Rinse and Repeat:</h3>Consistency and predictability of communication are non-negotiable factors for effective leadership. Successful leaders know that communications to the organization aren't one-off events - consistency is vital to maintaining team alignment. As the MLB uniform whiplash demonstrates, leaders who fail to communicate consistently can foster confusion, skepticism, and even disengagement within their teams. Leadership is an ongoing process, and the most effective leaders know that reinforcing their messages over time is essential to preventing internal turbulence.Reflecting on this episode, I invite you to share experiences you've seen – or even led yourself – that come to mind after reading.

Leadership Lessons from the MLB Uniform Fiasco

Consulting projects are essential for businesses to improve their processes, increase efficiency, and ultimately, boost their bottom line. However, measuring the success of these projects can be challenging. Without clear metrics, it's difficult to determine whether the project was a success or failure.

<h2>Why is Measuring Success Important?</h2>

Measuring the success of consulting projects is crucial for several reasons. Firstly, it allows businesses to determine whether the project achieved its objectives. Secondly, it helps to identify areas for improvement in future projects. Finally, it provides a basis for evaluating the performance of consulting firms and consultants.

<h2>Best Practices for Measuring Success</h2>

<h3>Define Clear Objectives</h3>

The first step in measuring the success of a consulting project is to define clear objectives. This should be done at the outset of the project and should include both qualitative and quantitative metrics. Qualitative metrics might include improved employee morale, while quantitative metrics might include cost savings or increased revenue.

<h3>Use Data to Measure Progress</h3>

Using data to measure progress is essential for determining the success of a consulting project. Data can be collected through surveys, interviews, and other methods. It's important to collect data throughout the project rather than just at the end to ensure that progress is being made.

<figure id="figure-ncyaiqk0plj4piqxa"><img id="ncyaiqk0plj4piqxa" src="https://images.unsplash.com/photo-1550071593-fd1bdaf1f93c?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxMXx8Y29uc3VsdGluZyUyMHByb2plY3R8ZW58MHx8fHwxNjg3MjkxMDQwfDA&ixlib=rb-4.0.3&q=80&w=1080" alt="consulting project" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

<h3>Communicate with Stakeholders</h3>

Communication with stakeholders is essential for measuring the success of a consulting project. Stakeholders should be kept informed of progress and should be involved in the evaluation process. This ensures that everyone is on the same page and that the project is meeting the needs of the business.

<h3>Be Flexible</h3>

Flexibility is crucial when measuring the success of a consulting project. Objectives may change over time, and it's important to be able to adapt to these changes. Being flexible also means being open to feedback and making adjustments as necessary.

<figure id="figure-c7uv9vmqelj4pisub"><img id="c7uv9vmqelj4pisub" src="https://images.unsplash.com/photo-1520607162513-77705c0f0d4a?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMnx8YnVzaW5lc3MlMjBjb25zdWx0aW5nfGVufDB8fHx8MTY4NzI5MTA0Mnww&ixlib=rb-4.0.3&q=80&w=1080" alt="business consulting" class="object-cover bg-gray-100" style="aspect-ratio: 16/9"></figure>

<h3>Consider the Long-Term Impact</h3>

When measuring the success of a consulting project, it's important to consider the long-term impact. Some benefits may not be immediately apparent but may become clear over time. For example, a project that improves employee morale may lead to increased productivity and revenue in the long run.

<h3>Compare Actual Results to Expected Results</h3>

Finally, to determine the success of a consulting project, it's important to compare actual results to expected results. This allows businesses to see whether the project achieved its objectives and whether it was worth the investment.

<h2>Conclusion</h2>

Measuring the success of consulting projects is essential for businesses to ensure that they are getting the most out of their investments. By defining clear objectives, using data to measure progress, communicating with stakeholders, being flexible, considering the long-term impact, and comparing actual results to expected results, businesses can determine whether their consulting projects are successful.

Blog

Is AI Eating SaaS?

The Argument for Lazy Salespeople

The End of an Era

I'm Sorry Dave, I Can't Let You Do That

Leadership Lessons from the MLB Uniform Fiasco

Measuring the Success of Consulting Projects: Best Practices