Revenue is the undisputed lifeblood of a company, yet its creation often goes unexamined. While it’s common for companies to perform comprehensive financial audits and operational, risk, and IT assessments, it’s rare for companies to assess their revenue creation activities in the same way. In reality, most companies manage their revenue generating efforts from a siloed, tactical perspective, which frequently results in underperformance. The Revenue Creation Health Check (RCHC) is designed to combat this, by providing a holistic evaluation of an organization’s revenue generating activities that can be used to identify opportunities for significant improvement.
A revenue creation health check is a systematic and comprehensive evaluation of an organization’s revenue-generating strategies, tactics, processes and systems across sales, marketing, and customer service. The goal is to leverage both holistic internal and external insights to identify areas for improvement, enhance revenue production, and drive sustainable growth. The four key components of an effective RCHC include:
1. Evaluation of Key Performance Indicators (KPI)
Evaluating revenue creation KPIs can be eye-opening in many different ways. They tell an undeniable story about the organization’s bottom-line performance. Plus, what is and isn’t being tracked can provide strong evidence of the organization’s operational maturity and what it holds most important. While the KPIs an organization chooses to track may vary with the specifics of their business and industry, standard best practice KPIs typically include:
2. Strategy and Tactics Validation
KPIs provide evidence as to the effectiveness of an organization’s revenue generating activities, but in and of themselves, do not validate the efficacy of its strategies and tactics nor the quality of execution. To accomplish this requires a series of interviews and observations across sales, marketing, and customer service. The goal is to validate if the organization’s strategies and tactics are being executed as designed, are effective and to determine what if any gaps need to be addressed to improve performance. Key questions to be answered include:
3. Revenue Operations and Execution
Revenue operations and execution are where the rubber meets the road. It’s well understood that an organization’s strategy is only as good as its ability to execute it. Still, it’s not uncommon for operational processes and systems to hinder performance. The goal here is to ensure that the processes and systems necessary for sales, marketing, and customer service to operate efficiently and effectively are in place and are integrated across all three groups. Key questions to be answered include:
4. Revenue Creation Improvement Roadmap
RCHCs often uncover a wealth of new insights, and thus it can be daunting to convert them into an actionable plan for improvement. It’s important to first consider how what you’ve learned has been impacting your customers and success. Then, you can quantify the benefits of the recommended improvements. Armed with these conclusions, the estimated ROI associated with each improvement and the expected effort to implement them will provide you with all the information necessary to prioritize your efforts.
The biggest challenge is always in the execution. You’re headed for disappointment if you expect your sales, marketing, and customer service leaders to execute your Revenue Creation Improvement Roadmap without oversight and project rigor. Cross-functional initiatives always require disciplined program management and oversight to be successful, and to maintain sustainable results.
An effective Revenue Creation Improvement Roadmap should include:
Shifting from a siloed to a holistic perspective on revenue creation yields substantial benefits. The RCHC can be the catalyst for enabling tighter alignment and integration across your revenue generating functions, while uncovering tangible opportunities for improved revenue production.
We help clients maximize revenue via improved sales, marketing and operational performance, alignment, and integration.
Helping clients to maximize revenue via improved sales, marketing and operational performance, alignment, and integration.