Align Team Priorities to Growth

Company Context

Northstar Health is a digital health company offering a subscription-based care navigation app for employers and health plans. The company has 420 employees, $82M in annual revenue, and operates in a fast-growing but increasingly competitive market for virtual care and benefits platforms. Northstar has historically grown through mid-market employers, but the CEO recently announced three company priorities for the next fiscal year: (1) accelerate enterprise growth, (2) improve gross margin, and (3) reduce member churn. You are the new VP of Strategy, and several functional teams are still pursuing legacy initiatives that were designed for the SMB segment.

Strategic Situation

The executive team is concerned that resources are fragmented across too many projects, and that team-level roadmaps are not clearly tied to the company’s top priorities. Product is investing in six feature streams, Sales is split between SMB and enterprise motions, and Customer Success is measured mainly on ticket resolution speed rather than retention outcomes. The CEO wants a practical plan to ensure that the next 12 months of work directly supports the company’s bigger priorities, while still delivering near-term revenue targets.

Data Points

Additional operating facts:

• Enterprise average contract value is $420K ARR, versus $95K for mid-market and $18K for SMB.
• Enterprise sales cycle is 9 months, versus 4 months for mid-market and 1 month for SMB.
• Implementation cost per client is $110K for enterprise, $28K for mid-market, and $6K for SMB.
• Product and engineering capacity for the year is estimated at 120 major initiative points; currently requested work totals 205 points.

Deliverables

As VP of Strategy, prepare a recommendation for the executive team:

1. Assess whether the current portfolio of work is aligned to the company’s stated priorities.
2. Propose a framework to translate company priorities into team-level goals and resource allocation.
3. Recommend which initiatives or segments should be prioritized, deprioritized, or stopped.
4. Quantify the likely business impact of your recommended reallocation where possible.
5. Outline how leadership should monitor alignment over the next 12 months.

Constraints

• You cannot increase total headcount by more than 5% this fiscal year.
• The company must still deliver at least $98M revenue next year even during reprioritization.
• Existing customer commitments already consume roughly 25% of engineering capacity.
• Reorganization should be minimal; the CEO wants clearer alignment, not a 6-month restructuring effort.