Revenue performance transformation - grow your business sustainably


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Long story but in the last 7 years we have been able to provide our clients with a better than 23% (avg) improvement to their top line.

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Revenue performance transformation - grow your business sustainably

  1. 1. Revenue Performance Transformation A step change in revenue process development and execution
  2. 2. Revenue Transformation Roadmap Before they start with us, nearly every client we’ve worked with has by that point already been on a long, frustrating journey. • At least one new Sales Director and perhaps a Sales Manager or two • Conducted a “spill and fill” on the sales force – out with the nonperformers replaced by new people who look just like the people they replace. • A sales training organisations will have rolled out the latest version of their sales training program for the re-energised sales force and • In more than half of cases there will have been a generous investment in a new CRM solution. Despite all this money and effort “it” still isn’t working and the organisation remains frustrated by inconsistent, unpredictable and invariably unprofitable sales performance. This is usually where we “Start”. A step change in execution | World-class revenue performance 2
  3. 3. The central importance of the buyer’s journey The Buyer’s Journey……. The entire Revenue Performance Management Model is centred on two simple yet fundamental concepts: • The need to understand the problems and needs that your customers (“buyers” in our terminology) have – that you solve and address; and • The process or “journey” which those buyers proceed down when they try solve those problems and address those needs. Everything which follows – through the Revenue Performance Diagnostic, Revenue School and ultimately to the implementation of your new processes and revenue model – is based around the buyer’s journey. Why is the buyer’s journey so important? ….informs the Seller’s Journey – or Process Our research and client experience has proved that truly world-class revenue creation begins and ends with the premise that the customer’s buying process or buying journey must inform the selling process to ensure that the seller is doing the right thing at the right time in the right way. The seller’s journey – which should mirror the buyer’s journey – becomes the basis for the construction of an end-to-end revenue process incorporating all the activities required to help buyers progress along their journey towards a purchase (or a sale for the seller). As a result Sales, marketing, business development etc are no longer viewed as separate functions, but critical links in an integrated, aligned selling process where everybody’s job is to make more revenue! A customer-centric Revenue Funnel. A step change in execution | World-class revenue performance 3
  4. 4. Revenue Performance Diagnostic The RPM process begins with the Revenue Performance Diagnostic - a comprehensive evaluation of your sales, marketing and business development approach, activities and processes which will provide you and us with insight into the aspects of your revenue model that are working well, those that are not, and why or why not. Revenue Performance Scorecard Typically taking between 3 and 6 weeks to complete depending on the size and complexity of your organisation and the scope of coverage required, the Diagnostic essentially involves four types of activities: Prova Profiling Assessments • Interviews with your key managers and staff • Prova psychographic and competency profiling for your key people • A Sales “Pulse Assessment” involving “in-the-field” assessments of sales people, review of how they spend their time and the tools and support systems available to them • Completion of surveys covering the 17 key enablers of revenue performance and • Several ½ day workshops for managers, staff and other key stakeholders. Our work culminates with the delivery of a report comprising: Revenue Risk Assessment • Revenue Performance Scorecard benchmarking your revenue process across 36 Key Performance Indicators • A prioritised Revenue Risk Assessment identifying your key revenue risks and assigning them an order of priority • Prova Profiling Assessments for your key managers and sales people; • An assessment of your organisation’s readiness for change and • A five year predictive Revenue Model based on the “As Is” state of your current revenue process, and under a series of “What If” scenarios A step change in execution | World-class revenue performance 4
  5. 5. RevenueSchool™ Based on the findings and recommendations from the Revenue Performance Diagnostic, RevenueSchool™ delivers the RevenuePlan™ the blueprint we then use to develop and then rhythmically and systematically execute the sales and marketing tactics and processes to deliver the desired revenue results. RevenueSchool™ – Content RevenueSchool™ is a proven approach to collaboratively developing clear, granular and actionable revenue plans, and lays the platform for a rigorous, process-based approach to revenue creation. RevenueSchool™ is an intensive “Boot Camp” for revenue process improvement and growth, where our experienced facilitators work with your senior sales, marketing and other customer-facing executives to develop highly actionable plans for sustained, profitable and measurable top line growth. At Baker Tilly we use RevenueSchool™ to deliver robust multi-year plans featuring integrated views of sales, marketing, service and finance all aligned around a clear, sustainable revenue strategy and process. RevenueSchool™ produces highly integrated process development and implementation plans which can be more effectively embedded because we: • Document your RevenuePlan™ in detail, including a crystal clear, single page version; • Identify all actions and processes necessary for the effective execution of your Plan; and • Assist with the execution of the Plan and its roll-out into your business A step change in execution | World-class revenue performance 5 Plan on a single page
  6. 6. RevenueSchool™ – Process & Content RevenueSchool™ follows a very logical structure. Essentially we ask and then answer some very basic question about your business: • • • • • How much do you need to sell? For what return? Who will you sell to? At what price? How will you find them, reach them and sell to them? When you find them, what will you sell them? Who will you have to defeat to do that? Objectives Strategy • What resources do you have available? Are they adequate? • What constraints will inhibit you? • What risks will you need to mitigate? Problems Markets Customers • Of what? • How does our sales & marketing work today? • Do we solve problems, or address needs? • Who most has the problems that we solve? • Who are they and what are their objectives? • By When? • What do we sell? • What problems do we actually solve? • How many organisations have these problems? • What are their challenges and problems? • How much? • To whom do we sell? • Through whom do we sell? • At what price & margin? • How effective? • Why do customers pay us? • What are they paying us for? • What are they really buying? • How bad is their “pain”? • Who (within these organisations) is most affected? • How do they buy solutions to this problem? • What does the Ideal customer look like? • Where do we find them? A step change in execution | World-class revenue performance 6 Competition Value Proposition • Who else solves the problem? • What are we the best at? • Who are our competitors? • What are our solutions / offerings? • Relative strengths & weaknesses? • Do they address the business problems? • What is our competitive strategy and position? • Are there things that we could, or should be best at? • Effectiveness? • Implications for resourcing and investment?
  7. 7. RevenueSchool™ – Process & Content The concept of the buyer’s journey is again central to the logic that runs through the entire process of Revenue School. What are the specific journey’s that your buyers are on, and how do we develop and set in place a parallel, symbiotic selling process incorporating the tactics, business processes, recruitment, training, technologies and performance measures to drive your buyers down their journeys more rhythmically, predictably and sustainably. A detailed and highly actionable plan addressing all those questions is the ultimate output of RevenueSchool™. Buyers Journey • What does the buyers journey look like? • How quickly do they progress? • At what rate do prospects leak? • How does their journey map against our sales process? Tactics • What tactics can we employ to progress prospects through the funnel? • Recycling tactics: - Top of Funnel - Bottom of Funnel • Create set-up and rhythm tactical plans - sales - presales - support - infrastructure • Do our people have the right skills to execute the plan? • What should we measure? • When? • How will we capture the data? • How should we put all the pieces in place and in what order? Review Improve • Strategy • Regular optimisation • Resources • Continuous improvement • Tactics • Optimise and cost? • Do we have the resources necessary to execute the plan? Execution Metrics Resources • Process measurement & reporting • When? • Rhythm Plan • Project management? • How will it be reported? • Brainstorm • What risks do we need to manage? • Benchmarking • Training implications? A step change in execution | World-class revenue performance 7 • 6mths, then annual review
  8. 8. Implementation Planning Following RevenueSchool™ we take stock and mutually agree on the content, structure and direction of the Revenue Plan. Armed usually for the first time with a holistic end-to-end view of your revenue model, it’s important to catch our breath and take stock of where we are before we move ahead to implementation. It is at this point that we also discuss and agree the pace of change your company is prepared and able to adopt. There will be a lot of other things going on in your organisation and it’s crucial to take account of these before moving forward with a project which by its nature will reach out and touch a lot more than just the marketing and sales groups. As we approach this part of the journey, we agree and lock down the fundamental tenets for your new revenue process. These will include but might not necessarily be limited to: SALES MARKETING • • • • • • • • • • • • What problem(s) you solve; Where you find customers with those problem If the market size can sustain your revenue goals What your ideal customer “looks” like and the criteria for recognising them How Marketing should target & track demand creation What your ideal customers’ buyers’ journey looks like, how it is structured and the stages required in your parallel selling process Milestones that prove each stage is complete The optimum velocity for opportunities to move between stages Typical lead attrition between stages The format, structure and content for lead nurturing programs Technology for marketing automation & lead scoring Tactics and processes for recycling opportunity leakage • • • • • • • • • • Tools to use when selling & reporting in each stage Who plays a role in each stage (presales, partners, management, etc) A structure for forecasting based on funnel stage / win probability How to qualify-out of sales that show no progress – and how to recycle those opportunities What new sales hires should learn in induction and ongoing professional development What new sales managers should learn on promotion and ongoing professional development Using incentives to drive behaviours that drive sales Linking methodologies & tools to achieve consistency and avoid duplication The format and approach for opportunity & account reviews Technology for sales analysis & reporting A step change in execution | World-class revenue performance 8
  9. 9. Implementation Planning The Implementation Planning stage is about setting the scene and getting prepared for change management, not training. The work done to date is the foundation for sustainability. Revenue Process Maps From this point in the journey our emphasis switches from design and development to execution. This involves the introduction of change management and project management expertise into the skills mix from our side. Although we separate the Diagnostic and RevenueSchool™ stages more distinctly from Implementation & Transformation (aka program build and execution) we’ve had a lot of experience now getting the handover to our project managers right. On larger projects we’ll usually insist on our client appointing a full-time or almost fulltime project owner / co-ordinator of their own to work side by side with our project manager(s). The total number of other Baker Tilly RPM resources required depends on the level, number and skills of the resources you are willing and able to commit. In the past we have done everything from supplying a single project manager to coordinate the actions of a client team through to supplying all the resources ourselves. In the latter instance the maximum number of people ever supplied by us to a project team to support a client transformation project was four (excluding the project manager) and those people were on site full time for nearly 4 months. Project Execution Plans At the conclusion of the Implementation Planning stage detailed Revenue Process Maps and the Project Execution Plans have been agreed. All is in readiness for implementation! A step change in execution | World-class revenue performance 9
  10. 10. Implement, Transform & Optimise When it comes to implementation, like the rest of the process we work to a consistent, repeatable, proven formula; which looks like this. Not every part will be relevant for every organisation but generically it works as follows: The Build We call the first stage of implementation “The Build” because it’s where the “heavy lifting” takes place. Typically it’s a 2-3 month task but it can take longer on larger or more complex engagements. The Build is where the tactics developed in the Revenue Plan are brought to life. A kick-off workshop gets the Build underway where we confirm how short-and long-term outcomes will be resourced and measured, how the overall project is to be managed, and of course, who is going to do what. Most of this will have been covered already during Implementation Planning, but we’ve found too much communication and re-affirmation of what’s going on is not enough. We’ll also confirm the division of labour and ownership across the project work streams.. People will be grouped into sub-teams each under a team leader who in turn reports to the Baker Tilly Project Leader. Usually we’ll use three or four sub-teams depending on the project plan and work required. These are like family groupings. Build “tactics” residing in each group are similar by nature. They require the same subject matter expertise to complete them, and some cannot be started until others are competed (e.g. marketing collateral cannot be written until research is completed, etc.). We group tasks and people this way because it pools resources appropriately and because the sub-teams can work in parallel and accelerate the Build. Rarely do we allow people to work in more than one sub-team, and the Project Leader continually monitors the assignments you have already made with this in mind. All the weekly meeting schedules, agendas and various communication strategies and methods together basically with all the tools required to manage and coordinate the Build are now more or less standardised after being developed and honed on previous projects. We’ve labelled it the Revenue Performance Transformation Model and it contains a wealth of codified lessons and experience s from so many previous projects with other clients. The same weekly governance and communication structure repeats throughout the life of the Build. It is designed to be a rhythmic, accountable approach to completing all assigned tasks, at the right quality level and within the timelines agreed. As the Build nears completion, we begin working with you and your team on the timeline for the installation of new tools, business rules and processes into the DNA of the company. A step change in execution | World-class revenue performance 10
  11. 11. Implement, Transform & Optimise 2. Installation & Execution The set-up for this next stage is almost exactly the same as for The Build. We convene an all-hands project meeting to review and confirm the outputs and quality of the Build. The Baker Tilly Project Leader facilitates a detailed walk-through of the new revenue process from end-to-end, showing in detail how all the tools, resources and actions created in the Build get integrated and tied together – by the processes. We also proscribe in detail the documentation requirements and standards for the new process model and how this will be written. We discuss and agree the training and development requirements for your managers, people and channels in light of the newly emerging revenue model. The Prova profiling outputs are invaluable inputs to this part of the project. We also discuss how what we refer to as “The Corkscrew” of opportunity recycling will be accomplished, and the workflows and division of labour required between marketing and sales to execute it rhythmically and consistently. Work assignments in this stage of the project fall into two categories and are managed within sub-groups or teams as in the Build. 2.1 Process Installation This includes the education of staff on the new tactics and processes, the implementation of opportunity qualification and account planning processes, training people on how to use the relevant methodologies (SPIN, deal planning, deal reviews, win/loss reviews, aggregation of competitive intelligence, sales manager coaching, forecast validation, and other aspects of a properly functioning end-to-end sales process). It is critical all the elements operate as part of a system instead of as separate units, and so our work in this stage is much more than contributing to training and running some seminars. It’s about putting all the pieces together so they work in an integrated, predictable and repeatable fashion, and are easy to use. Frequently we are involved in the development and delivery of custom-built education and hands-on coaching programs and we can recommend and introduce best-inclass partner organisations to assist in this work. A step change in execution | World-class revenue performance 11
  12. 12. Implement, Transform & Optimise 2. 2 Skills & Delivery Once the Build is complete, your new marketing and sales collateral will need to be positioned and used correctly, and this will require people learning new approaches to selling. Baker Tilly can provide this skills training or we can work in collaboration with your own internal training people if required. We can also recommended partner organisations with whom we have worked in the past. We heighten impact and minimise interruption to business by using the traditional workshop format only for content that requires practice, role-play and feedback. Everything else gets pushed to more cost-effective delivery methods such as a libraries of webcasts, podcasts and other online reference materials. We’ll help get your people’s heads and hands around all the tools and resources created in the Build stage, and to know how and when to apply them - to standards of excellence internally and in front of customers and partners. 3. Reinforcement & Benchmarking Eighty percent of new adult learning is forgotten within 30 days without reinforcement. It’s critical that your managers and sales people don't abandon what they have learned. We’ll collaborate with your team to produce a variety of interventions that remind staff of key concepts, show them how others are applying them, and the results being achieved. From posters to videos to podcasts to e-learning modules, a variety of approaches are available in the classroom, to wireless devices, or to the PC. We’re able to re-use materials developed for other clients and save you from having to re-invent the wheel. We’ll also continue to focus on helping your Sales Managers master the art of sales coaching in the field, in sales meetings and in account reviews, to help them get closer to the sharp end of business and support their people. On a monthly basis to begin with and then quarterly going forward, we will also work with your team to collect and collate actual progressive measures of progress against plan. The things we will measure are the quantitative and qualitative success measures agreed at the original executive kick-off, the achievement of the targets developed in the Revenue Modelling, and the achievement of the revenue and profit targets that underpin the project. You will use this data to make small and frequent course corrections during the life of the project. Where elements in the revenue modelling are not improving at the planned rate, you will have an opportunity to fix it while the deviation is small enough to be easily corrected. We will provide counsel and advice at each step. A step change in execution | World-class revenue performance 12
  13. 13. The RPM Toolset RPM’s service components are closely aligned to the stages of the buying journey and end-to-end sales process – enabling either a holistic end-to-end solution or a logical “cherry picking” approach to helping organisations solve their specific revenue performance problems. The tools brought to bear are invariably different for each client because every client’s situation needs are different. The approach and framework are consistent. The tools and components applied depend on the specific problems diagnosed in the revenue process. A step change in execution | World-class revenue performance 13
  14. 14. Indicative Timeline Indicative RPM Project Timeline The accompanying graphic describes a process which from inception to completion typically takes between 4 and 6 months. Even at an initial scoping stage (i.e. before the first sod has been turned) it is not possible to define the exact duration because so much depends on what is discovered during the Diagnostic and what is then developed during RevenueSchool™. Resource and Time Requirements Other than knowledge of your business, your customers and your offerings, no special or expert knowledge or experience is required from you or your people. We will show you everything you need to know during the process. One of our goals in these projects is to make you and your team self sufficient as quickly as possible. During the Diagnostic stage, your key people will be required to commit up to approximately 2-3 days each, although that time will be scattered across a 4-6 week period so they will hardly find it onerous. During RevenueSchool™ they will be required to commit 3 days. It is up to you whether those are three consecutive days or three single days spread over about a 3 week time-frame. Once you move into Transformation / Implementation only the staff you nominate to be involved in the project teams need to be involved. The level and scheduling of that involvement is impossible to define until RevenueSchool™ has been completed. A step change in execution | World-class revenue performance 14
  15. 15. Scott Thompson Head of Revenue Performance Management Group Baker Tilly Tax and Accounting Limited 25 Farringdon Street London, EC4A 4AB Phone: 020 3201 8000 Direct Line: 020 3201 8264 Mobile: 07582 400788 Fax: 020 3201 8001 © 2008 Baker Tilly UK Group LLP, all rights reserved Baker Tilly Tax and Advisory Services LLP, Baker Tilly UK Audit LLP, Baker Tilly Corporate Finance LLP, Baker Tilly Restructuring and Recovery LLP and Baker Tilly Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. Baker Tilly & Co Limited is authorised and regulated by the Financial Services Authority to conduct a range of investment business activities.