January 15, 2012
For the second issue of 2012, we have a 25 question CEO Business Growth Audit to help you measure your potential to increase your revenue in 2012 . I look forward to your comments.
The BPI Strategy Group
Take the 2012 CEO Business Growth Audit
by Paul DiModica
In order to be growing your business aggressively, you need to use a premeditated system, take specific action steps to maximize corporate goals, exploit market opportunities, and understand the drivers needed to maintain sustainable growth.
At The BPI Strategy Group, we audit 100+ business growth drivers to determine company strengths and weaknesses in their operating models. Here are 25 of the 100+ drivers we use to audit a company’s potential for success and measure the areas that are weak and need to be adjusted. Take the test and measure your revenue growth success potential for 2012.
2012 CEO Business Growth Audit
1. Are your services, engineering or operation departments set up as individual profit centers?
2. Is your service department, engineering or operations department revenue capture process only the sales team’s responsibility?
3. Does your development, engineering or operations department create new offerings without market gap research or detailed written project plans?
4. Does your development, engineering or operations department create new business offerings without getting written input from your sales and marketing department?
5. Have your operations or development department wrapped your services into a packaged offering with specific pricing options targeting specific buyers to help your prospects buy easier?
6. Is the average success of your entire sales team’s assigned sales quota or target greater than 85% annually?
7. Do you have a written, documented systematic sales process detailing your firm’s entire sales cycle from pre-sale to post-sale that you require your sales team to follow?
8. Do you know your sales capture cost per sale?
9. Do you use a metric-driven method to mathematically calculate sales quotas or sales targets for your sales team?
10. Do you pay your sales team the same commissions for business from existing customers as you do for business from new prospects?
11. Do you know the lifetime dollar value of each of your top ten customers during the last five years?
12. Do you and your management team get a line item detailed profit and loss statement (P&L) showing profits and losses before corporate general and administrative costs (G & A) every month for each of your departments?
13. Do you know specifically (based on research) why your prospects buy from you?
14. Do you know specifically why you lose business (again, based on research)?
15. Does your vice president of sales have total control over who they hire and fire?
16. Do you raise your product or service pricing every year?
17. Do you calculate marketing Return on Investment (R.O.I.) for each your marketing investments?
18. Is your senior marketing manager paid financial incentives based on revenue growth?
19. Does your marketing department have a written month-by-month marketing action plan listing each activity, its costs and its expected inbound lead generation goals?
20. Has your firm calculated business demand for your products or services through market gap analysis?
21. Are you growing your firm’s top line revenue organically through outbound new market revenue capture?
22. Is at least 50% of your current fiscal year revenue coming from new customers?
23. Do you have any customer responsible for more than 15% of your total revenue?
24. Do you believe that all of your customers primarily buy from you based on your price?
25. Do prospects call you and ask to buy your product or service without you contacting them first?
1.YesÂ Â Â Â Â Â Â Â Â 6. YesÂ Â Â Â Â Â 11. YesÂ Â Â Â Â Â Â 16. YesÂ Â Â Â Â Â 21. Yes
2. NoÂ Â Â Â Â Â Â Â Â 7. YesÂ Â Â Â Â Â Â 12. YesÂ Â Â Â Â Â Â 17. YesÂ Â Â Â Â Â 22. Yes
3. NoÂ Â Â Â Â Â Â Â Â 8. YesÂ Â Â Â Â Â 13. YesÂ Â Â Â Â Â Â 18. YesÂ Â Â Â Â Â 23. No
4. NoÂ Â Â Â Â Â Â Â Â 9. YesÂ Â Â Â Â Â 14. YesÂ Â Â Â Â Â Â 19. YesÂ Â Â Â Â Â 24. No
5. YesÂ Â Â Â Â Â Â 10. NoÂ Â Â Â Â Â Â 15. YesÂ Â Â Â Â Â Â 20. YesÂ Â Â Â Â Â 25. Yes
Scoring Assessment: Give Yourself 4% for each right answer.
The following audit is hardly a complete assessment of your revenue growth potential but a snapshot of where you may be versus where you need to be.
How did you score?
60% and Below: Your business model struggles to maintain year-over-year sustainable growth. If your revenues are increasing, it is an anomaly, or a planned methodology? Do you recognize specific financial and operational leakage issues and your corporate instability exposure? To fix this position, you need a redesign of your business and the integration of your operations, sales, marketing and strategy processes into one revenue capture approach.
61% to 80%: Your current business growth model has some of the best practice attributes needed to grow revenue year-over-year using a planned process. Some of your business structure may need to be adjusted to maximize long-term corporate growth goals.
80% and Above: Your business structure maximizes corporate growth capabilities and uses an inter-department alignment that focuses on strategy linked to action steps. You have built a sustainable pattern, which should foster continued success.
Let’s make no mistake; it takes work and commitment by you and your management team.
To your Revenue Capture success,
Business Success Architect
The BPI Strategy Group