General Manager vs. Sales Leader: Who Should Lead the Charge in the New Growth Region?

by Eric Walczykowski

August 5, 2024,US Country Leader

When European software and SaaS companies scale to the US market, many firms default to appointing a sales leader due to the emphasis on go-to-market (GTM) strategies. However, this approach can be flawed if the leader lacks the broader operational skillsets required to build a sustainable presence in the US.

We have an extensive track record of successfully recruiting US leaders for software and SaaS companies based in Europe and a specialization in private equity sponsored companies looking to make this move.

At the highest level, the leader options are typically:

Sales Leader: While critical for driving revenue, a sales leader may lack the comprehensive oversight needed for full market penetration.
General Manager (GM): A GM brings a balanced perspective, handling everything from strategic planning to daily operations, ensuring all business facets are aligned and functioning effectively.

Assessing Potential Leaders

When choosing between a sales leader and a GM, consider the following:

1. Strategic Acumen
- Sales Leader
  Proven sales leaders excel in understanding GTM strategies, implementing the science of sales, and maintaining the rigor and discipline needed to drive sales. However, they may lack the comprehensive oversight required for long-term sustainable growth, including building cross-functional teams or leveraging the full capabilities of the corporate team. They might over-index on sales at all costs, which can be detrimental to long-term success that is based on capital-efficient growth that focuses on profit in addition to top-line revenue.
- General Manager
  A GM needs to have a deep understanding of GTM strategies, but more importantly, they must possess the capacity to develop and implement a long-term market strategy. This includes understanding the PE firm’s thesis, the company’s value proposition, and translating these to the US market. They must grasp the competitive landscape and develop a winning strategy that ensures sustainable growth.
2. Operational Skill Sets
- Sales Leader
  While adept at driving sales, they may struggle with managing all aspects of the business, such as building cross-functional teams, recruiting and leading diverse functions in the US, and balancing short-term sales targets with long-term growth objectives.
- General Manager
  A GM should be capable of managing all business facets, not just sales. They must develop a strategy to leverage corporate cross-functional resources or recruit necessary talent. This includes establishing core processes in marketing, sales, finance, and talent management to build a sustainable presence in the US, all while operating at the pace of private equity.
3. Team Building
- Sales Leader
  Sales leaders are typically skilled at hiring and developing sales talent but may fall short in building a cohesive cross-functional team necessary for a holistic market approach.
- General Manager
  A GM has a proven track record in hiring and developing local talent across various functions. They can utilize corporate resources effectively while building essential capabilities stateside. The focus should be on attracting, developing, retaining, and creating a team that works seamlessly with the European HQ.
4. Cultural Adaptability
- Sales Leader
  While proficient in understanding the local market, a sales leader might struggle with bridging cultural gaps and fully integrating corporate values with local practices.
- General Manager
  A GM should excel in cultural adaptability, adept at understanding the cultural norms of the HQ and translating them to the US team. They should build on the company culture to foster a seamless working relationship between the US operations and the European HQ.

Developing Key Questions: Sales Leader or GM?

To determine whether a sales leader or GM is right for your US expansion, consider the following questions:

1. Strategic Fit

Does the candidate understand the private equity firm’s thesis and the company’s value proposition?

Can they translate this understanding into a long-term market strategy for the US?

2. Operational Capabilities

Does the candidate have experience managing all business aspects, not just sales?

Can they develop and implement core processes across marketing, sales, finance, and talent management?

3. Team Building

Can the candidate build and lead a cross-functional team that includes local and corporate resources?

Do they have a proven track record in hiring, developing, and retaining local talent?

4. Cultural Adaptability

Can the candidate bridge cultural gaps between the HQ and the US operations?

Are they capable of integrating corporate values with local practices to build a cohesive team?

By thoroughly evaluating these aspects, companies can make an informed decision on whether to appoint a sales leader or a general manager to lead their US expansion.

Next Week: Building a Holistic US Market Entry Strategy

In next week’s posting in this series, we will explore how to build a holistic US market entry strategy. We will delve into the importance of developing comprehensive go-to-market plans, leveraging HQ resources, and establishing local capabilities. Stay tuned!

Partnering with Bespoke Partners for Leadership Success

Bespoke Partners stands out as the premier firm focused exclusively on executive recruiting and leadership advisory services for software and SaaS companies in the United States. Here’s why Bespoke Partners is the ideal choice for finding the right country leader:

Proven Track Record: Bespoke-placed executives have led their companies through exits and more than 425 acquisitions, totaling over $135 billion in value.
Extensive Network: The firm has successfully recruited over 1,000 top-performing leaders into private equity portfolio companies, including CEOs, CFOs, CROs, CMOs, CPOs, CTOs, CIOs, CHROs, Board Members, Operating Partners, Vice Presidents, and more.
Specialized Expertise: Bespoke Partners has conducted over 25 country manager searches specifically for private equity firms, demonstrating deep understanding of the unique challenges and opportunities in scaling businesses internationally.
Efficiency and Success Rate: Utilizing a unique, data-driven methodology, Bespoke completes searches in typically half the industry average time with a 95% placement success rate. Their process identifies leaders who will drive growth and minimize the risk of C-suite mis-hiring.

Learn More

General Manager vs. Sales Leader: Who Should Lead the Charge in the New Growth Region?

Assessing Potential Leaders