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Kevin Egan: Biggest Lesson on Managing Sales Teams at Slack and Atlassian | E1034

Kevin Egan is the Global Head of Enterprise Sales at Atlassian and brings more than 25 years of enterprise sales experience and leadership to the company. Prior to his current role, Kevin served as the Vice President of North America Sales at both Slack and Dropbox and has held various senior sales leadership positions at Salesforce. -------------------------------------------- Timestamps: 0:00 Who is Kevin Egan 1:13 Lessons from Salesforce, Dropbox & Slack 4:35 The Sales Playbook 7:30 When to Movie Into Enterprise 13:35 How to Identify & Hire Talent 21:27 How to Structure Comp Packages 26:00 How to Give Feedback 31:25 How to Do Discounting 35:30 Quick-Fire Round -------------------------------------------- In Todays Episode With Kevin Egan We Discuss: 1. The Makings of a Truly Great Enterprise Sales Leader: How did Kevin first make his way into the world of enterprise sales? What does Kevin know now that he wishes he had known when he entered sales? What advice would Kevin give to a new sales leader today starting a new role? 2. The Sales Playbook: How does Kevin define "the sales playbook"? Does the founder have to be the one to create the sales playbook When is the right time to hire your first salespeople? Should they be senior or junior first? What are the different types of reps to hire in the early days? Should you hire two at a time? 3. PLG vs Enterprise: Does Kevin believe it is possible to run both PLG and enterprise playbook at the same time? How does one know when they are ready to scale from PLG into enterprise? What are the signs? What do companies need to change in the way their sales team, is structured to make the transition from PMG to enterprise sales? What are the single biggest mistakes Kevin sees founders make in the scaling from PLG to enterprise? 4. Hiring the Sales Team: What non-obvious characteristics and attitudes should we look for in sales reps? How does Kevin structure the hiring process for all new additions to sales and revenue teams? What makes good PLG sales leaders? How are they different from enterprise sales leaders? What questions and case studies are most revealing for you in identifying them? What have been some of Kevin's biggest lessons on comp structure for these early rep hires? 5. Making the Machine Work: How does Kevin build trust with his early sales rep hires? What works? What does not? How does Kevin balance hitting the quarterly revenue target with longer-term pipeline strategy? How does Kevin manage when a quarter is missed? What is the right approach? How does Kevin approach post-mortems and deal reviews? How often? What do the best entail? ------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact -------------------------------------------- #KevinEgan #Atlassian #HarryStebbings

Kevin EganguestHarry Stebbingshost
Jul 12, 202338mWatch on YouTube ↗

CHAPTERS

  1. 0:36 – 1:12

    Kevin Egan’s path into sales: from Oracle support to sales engineering

    Kevin shares how he entered the sales world via a technical support role at Oracle in the mid-90s, then transitioned into sales engineering. He frames Oracle’s fast-paced environment as foundational for learning both the tech and sales sides of enterprise software.

    • Started in data center technical support at Oracle
    • Moved into sales engineering supporting database technologies
    • Early exposure to high-velocity enterprise orgs and rigorous sales culture
    • Built a dual fluency in technology and selling
  2. 1:12 – 4:29

    Career-defining lessons from Salesforce, Dropbox, and Slack

    In a rapid set of reflections, Kevin distills what he learned across three iconic go-to-market journeys. He emphasizes Salesforce’s early product-led trial motion, Dropbox’s enterprise trust work, and Slack’s ability to blend virality with enterprise readiness.

    • Salesforce as an early PLG pioneer: 30-day trials plus heavy sales enablement
    • Customer obsession and problem-based selling as conversion drivers
    • Dropbox: balancing end-user love with enterprise security/controls
    • Slack: marrying engagement/virality with enterprise posture from early on
  3. 4:29 – 5:37

    Rethinking the “sales playbook”: defining sales motions around buyer problems

    Kevin pushes back on the term “playbook” as overly linear, preferring “sales motions.” He explains that great selling is rooted in understanding buyer personas, industry context, and business problems—then positioning a differentiated solution rather than reciting features.

    • Sales motions vs. step-by-step playbooks
    • Define buyer/user persona, industry, and business problem
    • Differentiate via outcomes and value, not features
    • Repeatability comes from codifying what works
  4. 5:37 – 6:23

    Founder vs. sales leader responsibilities in codifying the motion

    This segment clarifies who should craft the sales motion in early company building. Kevin argues founders provide inspiration and narrative, while the sales leader’s job is to translate and codify it into teachable, repeatable motions for the team.

    • Founder supplies product story and problem-solution intuition
    • Sales leader codifies into writing and operational motions
    • Goal is repeatability so others can execute
    • Sales leadership “pulls from” founder talk-tracks and sharpens them
  5. 6:23 – 7:24

    PLG and enterprise: whether you can do both, and why it’s hard

    Kevin explains that doing PLG and enterprise simultaneously is possible but extremely difficult. He suggests a more sequential approach—win end-user love first, then add enterprise layers—while keeping an eye on enterprise requirements early.

    • PLG captures end-user imagination; enterprise requires deep posture
    • Slack as an example: PLG first, enterprise later (with early awareness)
    • Enterprise readiness takes years of investment
    • Recommended sequencing: adoption first, enterprise second
  6. 7:24 – 8:26

    Knowing when it’s time to move into enterprise: being “pulled in” by customers

    Kevin describes the inflection point as a customer-driven pull: internal virality creates large user counts that trigger procurement and legal involvement. At that point, companies demand strategic-partner behavior, not a “rogue tool” used by teams.

    • Virality within companies pulls you into enterprise conversations
    • Large user counts attract procurement/legal scrutiny
    • Need enterprise terms and partnership posture
    • Enterprise motion often begins as a response to customer demand
  7. 8:26 – 10:06

    What must change for enterprise: reliability, security, data, and ‘no finish line’ compliance

    This chapter details the operational and compliance upgrades required for enterprise scale. Kevin stresses that enterprise posture is not a short checklist—requirements like data residency, access controls, encryption, DLP, and evolving regulations make it a continuous commitment.

    • Enterprise needs scale, SLAs, and high uptime expectations
    • Data residency/geography needs (e.g., Europe/Japan)
    • Security controls: access, encryption, DLP, process controls
    • Compliance is ongoing (e.g., GDPR): ‘lifelong pursuit,’ not a feature drop
  8. 10:06 – 11:19

    How sales org structure evolves: early feedback loop to traditional enterprise roles

    Kevin explains that early sales teams should function as learning engines, feeding customer insight back into product to create repeatability. Once the motion is repeatable, organizations can shift toward more traditional structures with specialized roles focused on quota and support functions.

    • Early sales: revenue plus critical product feedback loop
    • Learn why customers gravitate to the product and how to express ROI
    • Repeatability enables scaling and specialization
    • Later structure: core sellers supported by SEs and more formal roles
  9. 11:19 – 13:28

    Measuring rep effectiveness: A/B testing, cohorts, and hiring multiple reps

    With longer enterprise cycles, Kevin advocates more rigorous measurement approaches. He highlights Atlassian-style A/B testing (rep-assisted vs. online channel cohorts) and prefers hiring 2–3 reps at a time when possible to benchmark performance and ramp speed.

    • A/B test rep-assisted selling vs. web/online channels
    • Use cohorts to compare growth, activity, and opportunity creation
    • Hiring 2–3 reps helps reveal true performance differences
    • Benchmarks: ramp speed and who ‘carries the water’
  10. 13:28 – 15:05

    Hiring great sales talent: disciplined process and the ‘stand and deliver’ mock pitch

    Kevin outlines a multi-step, high-discipline hiring process inspired by Salesforce’s constant interviewing culture. He requires candidates to complete a mock selling scenario to demonstrate real-time command, objection handling, and the ability to tie solutions to business problems.

    • Hiring excellence comes from process and discipline
    • ‘Hiring fatigue’ mindset: always be interviewing
    • Multi-step interviews (5–6 people/steps) to assess consistency
    • Mock scenario/presentation as a non-negotiable evaluation step
  11. 15:05 – 17:57

    Designing mock scenarios and spotting red flags: consistency under pressure

    The discussion goes deep on how to structure mock scenarios, including using fictitious companies or the candidate’s own product, and adjusting difficulty via tougher objections. Kevin’s main evaluative lens is consistency across the process and comfort presenting under pressure.

    • Mocks can be based on fictitious company or candidate’s known product
    • Quality depends on clear business problems and strong objection handling
    • Make known-product mocks harder by raising objection difficulty
    • Red flag: inconsistency—strong interviews followed by a weak mock pitch
  12. 17:57 – 21:27

    Choosing the right rep profile by company stage (and the ‘coin-operated’ question)

    Kevin argues talent needs change more with company maturity than with PLG vs. enterprise. Early teams need “renaissance” reps with broad range to build; later-stage orgs can support specialization and stronger compensation focus, though early ‘coin-operated’ behavior can be harmful.

    • Rep needs vary by company stage more than by PLG vs. enterprise
    • Early: broad-skill builders who like ambiguity and creation
    • Later: specialized reps focused on accounts, quota, and earnings
    • ‘Coin-operated’ reps are risky early, more acceptable as org matures
  13. 21:27 – 22:41

    Compensation philosophy: fairness, market data, and screening for long-term motivation

    Kevin emphasizes comp plans must be market-fair, but he also uses comp discussions to gauge whether candidates are excited by the long-term journey. If the negotiation becomes overly comp-centric, he treats it as a potential red flag relative to commitment and fit.

    • Use market benchmarks to ensure fairness
    • Comp reflects a moment in time; roles and company evolve
    • Look for excitement about the mission and growth journey
    • Over-fixation on comp can signal misalignment
  14. 22:41 – 27:36

    Managing people well: trust, hierarchy, and giving direct feedback that isn’t constant

    This chapter covers Kevin’s approach to building trust through clear expectations early, then shifting toward partnership as competence grows. He reframes hierarchy as clarity of responsibility and complexity, and stresses that direct feedback should be timely and clear but not incessant or personal.

    • Manager relationship shifts from directive to partnership over time
    • Hierarchy holds when responsibility/complexity increases with level
    • Leaders must be capable of plain-spoken corrective feedback
    • Feedback should be right-sized (frequency) and team/priorities focused
  15. 27:36 – 35:39

    Forecasting and closing in 2023: ROI clarity, CFO involvement, pipeline, discounting, and deal reviews

    Kevin explains that uncertainty raises the bar for forecastable deals: you must articulate the business problem and expected return, especially with CFOs now deeply involved. He discusses avoiding quarter-end ‘cramming’ through healthier pipeline, outlines discount governance via CFO-led matrices, and shares how rigorous deal reviews focus on why deals won’t happen.

    • Forecasting demands crisp problem/ROI articulation in tighter budgets
    • Welcome CFO involvement; respond with value engineering and clear returns
    • Avoid end-of-quarter pressure by generating ample year-round pipeline
    • Discounting should be governed by CFO-led matrices and approval bands
    • Deal reviews should use frameworks (e.g., MEDDIC) and probe failure risks; distinguish ‘commit slipped’ vs ‘pull-in attempt’
  16. 35:39 – 38:53

    Quick-fire insights: what endures, what’s dead, leadership advice, AI, and admired sales orgs

    In closing rapid-fire, Kevin highlights enduring fundamentals like strong written communication and planning, and declares information-hoarding sales tactics obsolete in a transparent world. He advises new leaders to avoid pattern-matching, wants AI to guide better next steps for reps, and points to Snowflake as an admired example of customer-centric alignment.

    • Enduring tactic: clear written communication tied to business problems and plan
    • Dead tactic: withholding information; transparency is the norm
    • New leader advice: don’t pattern-match; learn peers and engineering/product deeply
    • AI opportunity: improve ‘best next step’ guidance and customer idea quality
    • Respected strategy: Snowflake’s alignment and customer-centric execution

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