SYSTEMS THINKING FOR EXPLOSIVE REVENUE GROWTH

ADDING VS SCALING FOR EXPLOSIVE REVENUE GROWTH
August 20, 2018

Looking to optimize your sales, revenue, profit and cash flow production?  There is only one performance optimization approach that has been proven to work in all types and sizes of companies all over the world.    Before explaining that approach let’s start with the three most common ways most people try to improve business performance.

  1. People – hire more people, better people, harder working people.  That’s a great idea but has many flaws.  First, the market for real and proven talent is extremely small.  Second, increasing headcount comes with a lot of new costs, which means eating profits.  Third, no matter how great your talent is, they cannot overcome the major roadblocks and disconnects in your enterprise systems
  2. Process – implementing and re-engineering processes was a huge directive in the 80’s and 90’s and still quite popular today.  Process is a critical and powerful part of optimizing success, however it isn’t the most important and isn’t the first thing that most leaders should fix.  Nine out of ten companies should focus on developing more effective core strategies and better business models and structure first.  Then let the process be the workflow to bring those new strategies and organizational structure to life.
  3. Function – attacking the function is a quite popular approach to optimizing growth (sales, revenue, clients, contracts, etc.) Streamline operations, automate sales, digitize marketing, implement open-book management and so on.  However, fixing one thing in a car like the wheels and tires, the engine, or the transmission will still limit performance to its weakest link.  Too many companies are forcing a Ferrari engine on a Model T business model.   Faster but quite dangerous.

What’s a superior approach to optimizing growth? Once you make sure that you don’t have any missing or broken parts, then you should focus on the whole.  Back to the car analogy just for a second because everyone understands it.  How many major systems are in a car?  Quick?  Most people know what a car is but they don’t know the major systems.  Engine, fuel, exhaust, cooling, lubrication, electrical, transmission and chassis.  Did you add the A/C and entertainment system to your list?  A car is no better than the weakest part of the mandatory systems (sans A/C and entertainment).

In addition, optimized performance can only come from all of those systems being in perfect unison to create the ultimate vehicle for your transformation goals.  Travel, speed, hauling, climbing, are all different goals for an automobile and each of those will dictate the perfect mix of the right systems.

A business is no different. Every business is composed of systems.  Some of those are functions – client and non-client.  Other systems include cross-functional attributes such as CRM, supply chain, order entry, etc.

The only way a business can be optimized is by looking at all the parts of the system.  Is the system designed to optimize sales, revenue and profit growth?  99% of the time it’s not.  Most of the time, the system is over-designed to create, deliver and support a product – but not designed to generate money.   Is your business designed properly?  Want to know why or why not?

Schedule a call
Kent Billingsley
Kent Billingsley
Kent Billingsley is the Founder and President of The Revenue Growth Company® (TRGC), LLC. He started The Revenue Growth Company over 15 years ago to solve the most difficult challenge CEOs and business owners face. Billingsley has over 40 years of experience, delivering over 10,000 hours of CEO workshops and speeches in 36 countries. He has successfully built, tested and validated, the most powerful, scalable, and repeatable way, every business can follow to generate more revenue and profit – while using the fewest resources.

Leave a Reply

Your email address will not be published. Required fields are marked *