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20Sales: Biggest Lessons Scaling Slack from $6M to $1BN in ARR | How to Build a Customer Success Machine and Where Most Go Wrong | The Framework to Hire All Sales Reps: Take-Home Assignments, Hiring Panels and more with AJ Tennant @ Glean

20VC · Harry Stebbings — AJ Tennant · October 23, 2024 · Original

Most important take away

Sales skills can be learned, but success at scale requires creative problem solving, collaborative tension between GTM and R&D, and tying AI deals to defensible business outcomes rather than buzzword-driven experimentation. The best hires are identified through chronological “who” interviews, panel presentations, and stress tests (like asking for 10 prioritization data points on the spot) that reveal IQ, EQ, and the ability to read a room.

Summary

Actionable insights and career advice from AJ Tennant (VP Sales & Success at Glean, ex-Slack employee #50, ex-Facebook):

Sales skills and mindset

  • Sales is learnable; rejection is the hardest skill to develop. Start where you can fail fast (e.g., outbound print ads to small businesses).
  • Junior AEs most often fail at active listening and flexibility mid-conversation; they over-rely on rigid scripts and prioritize volume of outreach over crafted, point-of-view messaging.
  • AEs should always do their own outbound, even with BDR/marketing support.
  • Don’t over-engineer “playbooks.” Sales fundamentals: ICP, messaging, product, content; convert outbound to meetings, meetings to opportunities, opportunities through the funnel.

Founder/CEO involvement

  • Founders must be in the trenches from $0 to $10M ARR to find product-market fit and to signal commitment to the sales team. After that, leverage but don’t dictate messaging/strategy.

Segmentation and moving up market

  • Start in the middle market (e.g., 500–4,000 employees, ~$100K ACVs). Avoid SMB-and-Fortune-100 simultaneously.
  • Segment by employee count (Glean cut at 2,000+ for enterprise). Don’t over-segment too early; you need 200–250M ARR before specializing by vertical.
  • Move up market once you have repeatable success in mid-market. Pick 1–2 marquee accounts (Glean’s bet was T-Mobile) to prove enterprise viability before scaling the motion.
  • Expect ~4.5–5 month cycles mid-market; under-1,000 employees ~90 days; enterprise dramatically longer due to security, legal, deployment complexity.

Land-and-expand with enterprise

  • Be willing to do small land deals ($100–150K) with Fortune 100s, but require explicit, commercially-aligned success criteria that map to a seven-figure expansion. Glean turned a $60K healthcare land into $500K+ in 9 months by aligning AE, SE, and CSM on deployment and value.

AI selling reality

  • AI budgets are still mostly “experimental.” Capture the demand but force conversion to defensible business value (top/bottom line). Implementation, change management, and adoption — not the product — are the failure modes (cf. Microsoft Copilot underwhelming results).
  • Glean’s largest contract is north of $5M. Renewal churn is coming for tools that didn’t deliver value, especially layered-on AI features from incumbents.
  • Lean into customer-spoken buzzwords (“AI-enabled workforce”) sourced from their own CEOs, not vendor speak.

Customer Success construction

  • CS owns NRR, GRR, and active-user adoption. AEs retain the upsell incentive in enterprise — CS and AE are a partnership, not a handoff. CSMs comped primarily on active usage, with spot bonuses for big expansions.
  • GRR matters more than NRR (negative network effects from churn are devastating). Better leading indicators: time-to-launch and percentage of paid seats actually active.
  • Don’t allocate based on contract size alone — combine contract size and company size when assigning senior CSMs. Glean pays AEs only after an approved deployment success plan is filed (a tactic borrowed from Dave Schneider at ServiceNow).

Hiring framework (very actionable)

  • Chronological “who” interview (from Bob Frati at Slack): walk the candidate through their entire life decision-by-decision. Ask for the name of their worst boss, then say you’ll text/call them — watch them react.
  • Require artifacts: decks, emails, prompts they have built before. The best candidate AJ saw researched Glean’s customers and interviewed them before his own interview.
  • Hour-long panel presentation prepping for a real prospect account (no wasted effort).
  • Mid-interview curveball: “Give me 10 data points you’d use to prioritize a 100-account book of business, ranked.” Tests creative problem solving under pressure — most stall at 5.
  • Time-to-fire: enterprise AE ~90 days, SMB ~30–45 days. Glean runs ~20% turnover. Top failure modes: lack of creative problem solving (brings problems, not solutions) and inability to handle “collaborative tension.”
  • Biggest hiring mistake: moving too fast. “Let fires burn” rather than backfill with the wrong person.
  • Invest in enablement early — the “great reps figure it out alone” mindset is wrong.

Comp design

  • Most impactful lever: aggressive accelerators above 100% quota to reward top performers (CSMs, BDRs, and AEs).
  • Discount early to win logos; tighten the discount matrix after $10–20M ARR.
  • Marquee logos matter less than marquee customers who will take reference calls and do intros.

Career advice

  • Tech sales is undervalued by top graduates who default to product/strategy/consulting. Two functions drive most tech companies: product and sales. If you’re smart and not an engineer, sales is the path — and it’s a credible route to CEO.
  • AJ’s decision framework: focus on three Ps — Product, People, Position.
  • Coin-operated reps are the wrong hires; the best want coaching, challenges, and career development.

Distribution insight

  • Most impressed by Wiz’s partner/channel strategy — turning ~100 direct AEs into thousands of channel sellers. Slack lost the distribution war partly because it didn’t lean into channels beyond PLG.

Grit (from Harry’s side)

  • Most great companies are built on grind problems, not technically hard ones. 90% of podcasts don’t make episode 10; surviving 50 puts you in the top 2%. The same applies to sales careers.

Chapter Summaries

  1. Are sales skills born or learned? — AJ argues learnable; rejection is the hardest skill; work ethic beats charisma.
  2. Where junior AEs fail — Lack of active listening, rigid scripts, prioritizing volume over crafted, point-of-view outbound. AEs should own their own outbound.
  3. Playbooks and founder involvement — Keep it simple; founders must be hands-on $0–$10M then step back from strategy.
  4. Segmentation and middle-market — Start mid-market; avoid serving SMB and F100 simultaneously; cycle lengths by segment.
  5. Lessons from Slack — Collaborative tension between R&D and GTM (bringing engineers onto customer calls); should have moved up market faster.
  6. Moving up market — Segment by employee count, pick marquee anchor accounts (T-Mobile), phase the transition; security/legal/compliance burden is underestimated.
  7. Land-and-expand with enterprise — Small lands OK but require codified success criteria tied to seven-figure expansion.
  8. Selling AI today — Still “experimental budget”; capture demand but force ROI conversations; customer buzzword mirroring; churn coming for non-delivering AI bolt-ons.
  9. Customer Success construction — AE keeps upsell incentive; CSMs on active users + NRR/GRR; deployment success plan gates AE commissions; GRR > NRR; time-to-launch as leading indicator.
  10. CSM staffing — Match seniority to combination of company size and contract size, not just ARR.
  11. Comp design — Aggressive accelerators are the highest-leverage change; spot bonuses for big expansions.
  12. Hiring framework — Chronological “who” interview, panel presentation on a real prospect, take-home artifacts, mid-interview stress test (10 prioritization points), back-channeling.
  13. Why people fail — Bring problems not solutions; can’t handle collaborative tension; biggest hiring mistake is moving too fast.
  14. Onboarding/enablement — Don’t skip it; hire a world-class enablement leader.
  15. Quick-fire — Discounting, logos, advice to a new head of sales, creative T-Mobile win story (lobbying the CEO at the W Bar), morale on missed goals, stretch goals.
  16. Most-impressed GTM — Wiz’s channel strategy turning a small direct team into thousands of sellers.
  17. Personal grit segment — Harry on podcast survivorship; AJ on chip-on-shoulder origins; both agree top 1% innate, the rest learnable through grind.