Operational improvements yield managed growth.
When companies seek to reverse revenue declines or improve profitability, typical responses are to increase sales efforts, add or replace sales staff, change sales compensation plans or revise price, product, and promotion strategies.
However, revenue shortfalls and declining profits can be significantly improved by smart operational changes to provide both top and bottom line improvements. A critical review of structure, process, systems and reporting can enable management to better navigate changing landscapes and significantly improve results, regardless of market conditions.
To help a B2B service provider understand and actively manage growth and profitability.
Our client experienced growth over a two year period but was unable to pinpoint why or how. Revenues began to fall and they sought to reverse the decline. When probed about their sales process, we learned that there was essentially no structure in place.
Leadership lacked any meaningful feedback to validate which offerings were most in demand or why select projects were not awarded. Outgoing proposals were not centralized, tracked nor followed up on, post submission.
Our approach was to objectively measure and focus on what was contributing to growth and profit. The plan was to create a simple process for management to measure the sales funnel, to create a tracking system for outstanding proposals and to promote active follow up, for feedback.
“What gets measured gets managed…”
A sales process and structure, an informational dashboard and active management of the sales metrics — the ones that matter.
We implemented a simple, pipeline-centric CRM solution designed for small teams (think ‘non-technical’). This allowed leadership to review the total outstanding sales pipeline at any point in time as well as to understand where they were winning and importantly, where they were not.
Together we structured ideal levels for total pipeline, win rate and time targets for proposals outstanding. We created a system for follow up and sharing key learnings from wins and losses. Metrics were structured around revenue growth plans to ensure active management against targets. Performance was reported regularly and transparently, enabling the team to drive to each successive goal.
In short order, sales increased and target pipeline level was maintained, allowing for managed growth. There was more efficiency across the team’s collective efforts as we helped them select out of low probability proposals. Their wins rate increased and leadership now had the ability to accurately forecast which in turn, further improved profitability.
Top line growth. Improved profit. More efficient use of the entire team. Wins all around.