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Case Study : Gazeley
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Human Resource Practices

Conflict Management

An aggressive takeover of Remedy Software Ltd by Peregrine Systems Ltd in 2003 resulted in low staff morale and individual silo behaviour. A legal requirement and the recuperation of lost revenue resulted in the immediate implementation of a change in revenue recognition. Conflict management, negotiation and teamwork were necessary to implement this directive, critical to stabilise the company’s financial situation in an initially hostile environment.


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peregrine - conflict management
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Management and People Development
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Revenue recognition compliance required a change in reporting maintenance and professional services revenues.  This effected sales commissions and prevented maintenance services being used as a discounting sales tool.
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No previous focus on selling maintenance services due to the structure of commission plans.  This lack of knowledge resulted in anxiety and stress which led to aggressive and hostile attitudes.
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Heavy workload pressures on the finance department compounded the resentment of the changes.  Lack of motivation prevented revenue collection.
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The launch of new customer services offerings created confusion and unease within the sales teams
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Management and People Development
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Reprioritised finance workload enabled a recuperation of $3.5m additional revenue within 3 months
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A change in the perception of the importance of maintenance and services revenues by senior executives, sales teams and finance department
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Sales team awareness of the benefits of maintenance plans. Regular access of the support offered, this led to increased sales
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Confidence and energy restored across departments
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Senior executives had closer connections with team members resulting in credibility and regular feedback and appreciation
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