Commercial Excellence

Another buzzword OR real driver of significant Revenue and EBIT growth?

As a Chief Sales Officer – what keeps you awake at night?  You’re probably thinking about how to counter the newly imposed high tariffs on imports by the US government, how to fulfill your targets, how to turn around underperforming countries units, how to improve flaws in processes or how to grow and empower your team.

In today’s competitive B2B landscape, commercial excellence has become a strategic imperative for organizations aiming to outperform their peers.  The successes of leading companies over their competitors in a wide range of B2B industries* speak for themselves**:

  • 1-3 % points higher EBITDA vs. peers

  • 10-15 % higher growth rates vs. peers

  • Improved depth of commercial talent to enable tailored demand management, commercial savviness/ solution selling or value propositions

  • Greater sales and marketing representation and experience within the leadership team

Commercial Excellence in B2B

But what exactly does commercial excellence entail in B2B companies, and how can it be successfully realized? Commercial excellence is far more than only having an effective sales organization.  It is a holistic, cross-functional discipline that creates a real competitive advantage.  It integrates go-to-market strategy, sales effectiveness, pricing and margin management, customer centricity, marketing, performance management, digital and data driven decision making to name a few.  

It breaks traditional functional or business unit silos, requires joint optimization to align every commercial touchpoint with the strategic objectives of the business and the evolving needs of customers. Recommended key levers:

  • Further invest or retract? Focus on attractive and significant markets and customers segments – potential and relevance of geography and accessible profit pools, customer segments, and product portfolio compared to previous performance.

  • Establish a future proof and powerful market organization with an efficient operating model –commercially excellent and effective teams, comprising all relevant capabilities from lead generation to transaction along the entire sales cycle

  • Deploy CRM to set up a potential based customer approach and complement farming with hunting mentality

  • Introduce a pricing and margin management discipline/guidelines per business model to counter margin erosion

  • Steer via a cascaded performance and target system which also enables an end-to-end profitability consideration

  • Orchestrate joint optimization and collaboration between Business Units and Market Organizations via the establishment of a Chief Commercial Officer / Practice

 

How to achieve it?

As a leader, it is your vision that defines your company’s future.  It takes leadership, commitment, and collaboration to embark on the way to commercial excellence and making your business fit for the future.  From our experience, four actions are essential:

 1. Define a strong program with clear targets and objectives

Successful companies create tailored programs aligned with their organization’s maturity and goals.  They have a realistic assessment of their own maturity level, a clear view on “what looks great” through benchmark with industry leaders and secure buy in and sponsorship at the highest management level making it a corporate priority. Set measurable targets like growing underpenetrated markets, gaining market share, or entering new segments. Communicate these goals consistently to ensure focus and accountability.  For example, a packaging firm set “333” goals: 3 years, 3% incremental annual growth achieving $300 million$ revenue—transforming commercial excellence into a clear business priority.

2. Lead from the front

Leading from the front and being visible to your team is critical. Transforming commercial operations takes courage to challenge old practices and make bold moves.  Have open conversations addressing team concerns (“What’s in it for me?”). Don’t save at the wrong place: investing 0.5–1.5% of your overall SG&A budget in training can yield 1–3 percentage points EBITA improvement. Cultivating a high-performance culture aligned with commercial goals ensures sustainable execution and continuous innovation. Challenge the acceptance of mediocrity and “we always have done it like this”.  Support upskilling with modern training solutions, eventually supported by leading EdTech companies such as Emeritus to scale fast and integrate latest business school thinking.

3. Develop and Upskill the capabilities and maturity of your organization

Commercial excellence depends on developing people, processes, systems, and tools together.  If one of those components is missing the equation is zero. Imagine a company only investing in a CRM tool, without proper master data and cumbersome processes leading to low adoption, millions of $ investment are wasted.  Prioritize foundational capabilities first – yes, they are not as appealing as digital for example, but the impact is massive, then scale up. 

  • Enabling capabilities: key but often overlooked fundamentals like operating model design, customer relationship management, customer revenue / profitability management, and talent development that create the foundation for success.

  • Foundational capabilities: core skills such as active pipeline management, value proposition development, commercial savviness, pricing strategies, and key account management that directly impact everyday commercial performance and customer experience.

  • Advanced capabilities: high-impact skills like negotiating against procurement tactics, value selling and accelerating growth, which provide a competitive edge in complex situations.

Mastering these capabilities is essential for building a high-performing commercial organization.

4.  Measure and Reward

Track KPIs covering results and activities:

  • Lagging (results) and leading (activity) Indicators like revenue, order intake, margins/EBIT and pipeline strength, win rates, salesforce activity or customer acquisition cost

  • Process and operational metrics like cycle times (OTC: order-to-cash or DSO: days sales outstanding), delivery performance (OTIF: on-time-in-full), inventory turnover/working capital bound in inventory,

  • Customer and digital metrics such as self-service rate, no-touch orders, Net Promoter Score (NPS)

Regularly celebrate milestones to motivate and engage your team.

 

Conclusion: A Journey Worth Taking

Commercial excellence in B2B is not a quick fix or a finite initiative—it is a continuous, strategic journey that demands seamless integration, resolute leadership, and rigorous measurement. Drawing from extensive experience partnering with organizations committed to multi-year transformations, we have seen firsthand how companies that dismantle silos, foster collaborative commercial operating models, and embody bold, accountable leadership consistently unlock substantial EBIT and revenue growth.

In today’s dynamic and unpredictable market landscape, commercial excellence is no longer optional—it is the essential pathway to building resilient organizations capable of sustained competitive advantage and long-term success.

About Strat-Exx

We combine Strategic Leadership and Transformation Experience with Operational Impact.

Our Mission: support your organization to accelerate profitable growth, gain market share and achieve EBIT Uplift.

We blend consultancy excellence with operational / line leadership DNA, real world experience and focus on rigorous execution – side by side with your organization

www.strat-exx.com info@strat-exx.com


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Authors: Bernd Hirschle, Andrew Parker, Dr. Clemens Oertel

*) Strat-Exx project experience in the following industries: construction supply industry, mechanical engineering, chemicals, energy suppliers; packaging, construction supply, material handling, industrial equipment manufacturers; various Arthur D. Little, Bain and McKinsey studies

**) Comparison of reference companies with the bottom quartile

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