In the heart of Minneapolis’s industrial district, a legacy giant was poised for reinvention. Founded in 1968 by Roger Merrill and his wife, Merrill Corporation was synonymous with financial printing services. However, the world had evolved, and Merrill found itself struggling to stay relevant in a rapidly digitizing market.

When Thomas Fredell arrived at Merrill as Chief Product Officer, the company was in an identity crisis. CEO Rusty Wiley knew it was time for a drastic transformation and brought Thomas on board. To tackle this ambitious project, Thomas enlisted Christian Idiodi and Jeremiah Ivan, forming a dynamic trio determined to redefine Merrill's future.

Catalyst for Change

Merrill’s predicament was a textbook case of legacy business woes. The company’s reliance on its printing services was a liability as digital technologies rendered traditional media obsolete. Innovation was as rare as a snowstorm in July, and the command-and-control model stifled motivation and creativity.

High debt levels constrained Merrill’s financial flexibility, and several data breaches had tarnished its reputation. The sales-driven culture further exacerbated these issues. Salespeople, focused on personal quotas, prioritized short-term gains over strategic goals, resulting in inconsistent customer experiences and a lack of innovation.

Identifying Root Causes

To address these challenges, Thomas immersed himself in Merrill’s operations, spending significant time with key stakeholders like Doug Cullen, head of sales. Thomas quickly realized that Merrill’s power dynamics were skewed, with the sales organization dominating technology. This misalignment hindered innovation and market responsiveness.

Additionally, Merrill’s culture was disempowering. Engineering was outsourced, decisions were top-down, and teams followed rigid roadmaps, stifling creativity. The office environment, with its high cubicles and lack of shared spaces, further isolated employees, leading to low morale and engagement.

Vision for Transformation

Our transformation strategy aimed to shift Merrill from a sales-driven to a product-driven organization, using the approach Product Operating Model defined by Marty Cagan. Technology had to move from a supporting role to the forefront, directly serving customers as both a problem solver and solution enabler.

We began by modernizing our platform, transitioning from legacy systems to a microservices-based architecture. This change enabled faster responses to market opportunities. An early test came when a major client found a security bug. Our new, turbocharged engineering team fixed it within hours, turning a potential disaster into a triumphant validation of our new approach.

Empowering Teams

Empowering our teams was crucial. We shifted from project-based funding to funding problem-solving teams, equipped with the autonomy and skills to adapt and learn continuously. By fostering a collaborative culture, we dismantled hierarchical decision-making structures. Product and technology teams interacted directly with customers, ensuring our solutions were innovative and market-aligned.

Focused Problem-Solving

Merrill’s transformation was also marked by a clear product vision. We divested non-core businesses, concentrating on the most promising opportunities. This focus was instrumental in the company’s rebranding as Datasite in 2020, symbolizing our successful shift to a global, SaaS-based technology platform for the mergers and acquisitions (M&A) community.

Results

The transformation yielded impressive results. Datasite’s revenue increased by over 30% in 2019, facilitating more than 10,000 M&A deals annually. Investors achieved the best return of any portfolio company they ever funded - a fantastic outcome. Today, Datasite is not just an industry leader but also a beacon of innovation and agility, admired for its culture of continuous improvement and customer-centric solutions.

Conclusion

The transformation of Merrill Corporation into Datasite is a testament to the power of visionary leadership, strategic focus, and empowered teams using the Product Operating Model. By embracing change and leveraging technology, we turned a struggling legacy business into a thriving, modern enterprise. Our coaching can help you on your journey to navigate and successfully achieve a complex transformation.