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eBook Section 25: “Revenue Science” Rules & Tools for the 21st Century

In the 21st Century, “Revenue Science” is a must have just like Quality, Lean and Six Sigma were 20th Century must haves for intentionally-successful leaders.

“Revenue Science” brings new roles, new rules and new tools that must be applied by every organization that plans to survive and thrive in this constantly changing world.

Businesses are like the people in our lives. They are always changing but still guided by the laws of science and the human spirit.ebook 25

Twice a month for the next year stand-alone pages from a new eBook will be revealed to guide those who want to win The Revenue Game in today’s complex and transitioning world.

Each page from the eBook is a step along the Revenue RoadMap that shows traditional leaders (CEOs, COOs, CFOs, Sales and Marketing) and now the CRO (Chief Revenue Officer) how to predictably grow profitable revenue regardless of market changes.

This is page 25 of 25 and thank you for joining us in a new world of “Revenue Generation” by becoming a member of the “Revenue Science” community. Share with us your feedback, experience, challenges, and observations or just come along to observe and learn.

New Tool – Revenue Science creates Discipline and Accountability that replaces “hope,” “good luck,” and “gut” with science, metrics, process and the ability to continuously improve the leverage to achieve strategic goals.

Appling Revenue Science will immediately improve "Cost of Chaos" elements like Cost Per Sales Hour, Cost Per Lead, Time to Revenue and Margin.

Most of the 21st Century Revenue Generation issues are the result of 20th Century Myths we still hold on-to. Those Myths divert focus from the basics like Customer Focus, the Problem we solve, and even sharing our Worth Intentions with staff and the market.

The 21 Century is not about technology. Everyone has technology, and whatever technology we have will be worthless almost overnight. What lasts is our Worthy Intention, our commitment to our customers and staff. When we (the company, the team and the customer) all have the same Worthy Intentions and are committed to each other, we will find, build, create and deploy what we need to achieve our goals.

Going forward requires learning the Revenue Science rules, deploying the tools, reviewing the outcomes across the organizations and their impact on customers. Monitoring the outcomes using these rules and tools demands constant improvement to add the long-term value customers are entitled to.

Everyone needs to make the rules and tools habitual to achieve Revenue Science as the cultural advantage in the market.

 

 

Article written by Rick McPartlin

Rick McPartlin

As the co-founder and president of The Revenue Game, my mission is to help companies focus their organizations around the critical function of "revenue generation."

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CEO Challenge

Heavy Investment in Status Quo is the Opposite of Customer Focus

Train our people on our message.heavy iinvestment

What do we do to be better than our competitors?

Based on the focus group feedback, what else do customers want from us?

How does our pricing compare to the competitors?

We need to increase wallet share by up-selling those products our clients don’t already have.

What can we do to lower defections?

Which are the most compelling bundled offers to get higher margins?

Should we increase our channels or can we get more from those we have?

Having worked for some of the largest and most successful companies in the world as a consultant and employee for 30 years, I am still surprised how different “Customer Focus” can be interpreted.

There are those companies who define “Customer Focus” from Headquarters out. A lot of companies focus on how to sell customers more and more even when the customers hope to buy less and less. To sell them more and more means stealing deals and customers from competitors, locking customers into software, platforms or business models where it is hard to get rid of a product in the short-term without a lot of cost and effort.

HQ out companies spend research dollars, sales training budget, product development effort, and major parts of all department’s staff are fixing customer challenges, explaining why what the customer REALLY wants is what they already have, justifying various types of costs that just don’t seem right and discounting to overcome a true lack of value.

All the time Headquarters is pushing out a message of “Buy lots of what we’ve got,” the customer is screaming “I have lots of problems I need solved if I could find someone who will help.”

The amazing part of this is what HQ wants to sell is seen as a low-value expense the customer can get from at least two or three other vendors.

What the customers are talking about is “if this problem were solved, I would make a lot more money” and would compensate the business partner who continually solves this and other problems based on the value received. That kind of partner is NOT an expense but an asset, and the more these two organizations learn about each other, the better they will both do. Just find partners with THAT focus.

Companies who invest heavily in status quo have decided to NOT focus on customers who are trying to improve their business.

Business models are either HQ focused or customer focused. If a company staff and communication is all about “telling” vs. engaging around the problems the customer needs solved, that company is not a customer focused, value-adding partner.

By listening to the customers, the customers provide the best form of market research. Then the customers pay for prototypes, while helping you make the product even better and then sharing the success with the world.

The learning from working with this customer is transferable to other customers, and the seller is now designed into the solution for the long-term.

Everything the seller who invests in the customer focus accomplishes is faster, easier, cheaper and much more profitable for the customer and the seller.

Status Quo is a slow death for a HQ out company. The HQ out company ends up providing short-term price sensitive commodities for their customer. So START focusing on the customer’s problems and build a supporting business model.

Article written by Rick McPartlin

Rick McPartlin

As the co-founder and president of The Revenue Game, my mission is to help companies focus their organizations around the critical function of "revenue generation."


CEO Challenge

eBook Section 24: “Revenue Science” Rules & Tools for the 21st Century

In the 21st Century, “Revenue Science” is a must have just like Quality, Lean and Six Sigma were 20th Century must haves for intentionally-successful leaders.

“Revenue Science” brings new roles, new rules and new tools that must be applied by every organization that plans to survive and thrive in this constantly changing world.

Businesses are like the people in our lives. They are always changing but still guided by the laws of science and the human spirit.ebook 24

Twice a month for the next year stand-alone pages from a new eBook will be revealed to guide those who want to win The Revenue Game in today’s complex and transitioning world.

Each page from the eBook is a step along the Revenue RoadMap that shows traditional leaders (CEOs, COOs, CFOs, Sales and Marketing) and now the CRO (Chief Revenue Officer) how to predictably grow profitable revenue regardless of market changes.

This is page 24 with 1 more to come. Join us in a new world of “Revenue Generation” by becoming a member of the “Revenue Science” community. Share with us your feedback, experience, challenges, and observations or just come along to observe and learn.

New Tool – The Revenue RoadMap lays out the path all revenue takes and establishes the metrics to review how well a company is traveling the path.

Each of the 3 critical functions Gold, Blue and Red have very specific metrics. The quality of the metrics is determined by the function before and after. No function can reach maximum performance without aligned outcomes from the aligned functions.

Gold has a strong resemblance to traditional marketing, Blue to sales and Red to operations. Every organization is different, but the functions are always required regardless of who delivers them within the specific organization

The metrics for Gold are the right number, of the right type of suspects, at the right time.

Blue determines the quality of Gold’s output by the number of quality suspects that meet the qualification criteria to become a Qualified Prospects worthy of deep investment. When investment is justified, Blue is responsible for time to a Yes or No, % of Yes, Margin, Gross $ and quality of the contract.

Red is the quality control over the contracts and is accountable for delivering the contracts on time, on budget, with estimated margins, new referrals and strategic farming.

The CRO is responsible for the strategic and real-time balanced deployment of resources to Gold, Blue and Red in alignment with the Revenue Strategy to achieve the greatest leverage possible.

 

 

Article written by Rick McPartlin

Rick McPartlin

As the co-founder and president of The Revenue Game, my mission is to help companies focus their organizations around the critical function of "revenue generation."

+ more articles about , ,

CEO Challenge

The 21st Century’s Formula for Winning the Revenue Game

Research says there is only one thing that assures business survival and success. That one thing is growing more profitable revenue. Long-term winners use a deployable Revenue Strategy to drive operations metrics, investments and tactics – not the other way around.

Every company today plays The Revenue Game, and it is possible for every company to win – if they will do the work. Winning is not about having the best or cheapest product. Whatever a winningcompany does today someone will do the same thing or better tomorrow and cheaper. There is a science of “Revenue Generation” which gives every CEO that ability to engineer profitable growth no matter what is happening around them.

Revenue growth is not stalled for most companies by cash constraints. Almost all B2B companies have a "Cost of Chaos" to produce revenue that is at least 20% of the current top line. The removal of the chaos provides all the cash someone needs to grow, and if exit is in the cards in the near term this additional EBITDA increases the multiplier and the transaction value.

“Revenue Science” is a combination science, research, best practices, Intellectual Property, and the discipline for an organization to make the Science of “Revenue Generation” part of the culture. To make something cultural, you first have to make it habitual for every member of the team. Applying “Revenue Science” needs to become “the” way things are done, and just like any great team, everyone is helping everyone else to get better.

“Revenue Science” is a team sport, and like all great teams it includes every person in the organization. Since an organization has only one requirement to survive and thrive, which is to produce more profitable revenue any person in the organization without a “Revenue Generation” role is suspect.

“Revenue Generation” has a Revenue RoadMap with metrics, and the metrics cross the organization. No department or person is successful if they are not making the people before them and after them in the “Revenue Generation” process successful. There are no silos.

Since very organization has only one requirement (more profitable revenue), there must be a fundamental question for each organization and each person to answer:

Do you make money “with your customer” or “from your customer?

Those who make money with their customers will be organizations formed around some “worthy intention” that is embraced by all staff, partners and customers. That “worthy intention” establishes principles to manage from, is why a company “always” has the right people on the bus, and is why their customers are just a little more loyal and willing to pay a little more.

There is a simple 5-phase company strategy of which a key for deployment is the embedded 5 Revenue Strategy Questions. Each organization based on their Revenue Strategy will be able to improve their top line and bottom line immediately.

Today every company has the choice to focus on activities and execution or aligned outcomes. “Revenue Science” gives you forward-looking outcome metrics to allow continuous improvement supporting adjustments to increase results and manage risk.

“Revenue Science” not only requires new thinking but also the new role of CRO (Chief Revenue Officer). The CRO has responsibility for the organization-wide 5 Question Revenue Strategy and the organization wide resources to achieve the Revenue Strategy.

For a company to take control, they need to learn new things, change the culture, and align their actions with Revenue Science based “True North.”

Now decide what are you willing to do to win The Revenue Game.

 

Article written by Rick McPartlin

Rick McPartlin

As the co-founder and president of The Revenue Game, my mission is to help companies focus their organizations around the critical function of "revenue generation."


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