The Importance of Internal Assessments
Every CEO wants to achieve Predictable Revenue Growth. And the companies that are struggling with achieving their revenue targets are often baffled by why as they continue to do more of the wrong things.
Here are some of the issues we have seen some of our clients struggle with:
- A simple change in workflow would save 40% of the time a team was spending to fulfill customer orders
- A company that generated 57% of its revenues from just 2% of its customers was spending 80% of its sales team’s efforts going after exactly the wrong types of customers
- A company that was meeting its sales targets was baffled by how cash flow was always a problem. It found out that 18% of the closed deals never converted into invoices because newly signed up customers canceled after being frustrated with protracted onboarding processes.
- A ten person sales team that received on average 3,000 leads per month was complaining that they were not receiving enough leads. Interviewing the team revealed that the team was getting such bad leads that they had stopped even looking at them.
- A sales team that was expected to meet its quarterly revenue goals with an average of 50 deals was not meeting its revenue goals after turning in over 100 signed contracts per quarter. The sales team thought it was working hard and doing well.
- A company that was struggling to meet its revenue objectives repeatedly said that the number one predictor of a closed deal was a site visit by a prospect. Yet, the company didn’t have a single program for drawing prospects to its site or in any way increasing site visits by a prospect.
- A company that repeatedly told its sales team to focus 80% of their efforts in selling a new product saw no progress until they walked through the process of selling this product and found a number of roadblocks that had to be removed.
You may look at the above and say, “Well those should have been easy to prevent in the first place. Our problems are more complicated than those”. And perhaps they are.
Yet, in each of the above cases, the company had a smart hard working management team in place.
So, why did these relatively straightforward issues slip through and persist for months, sometimes years, before being discovered?
One major reason is that all of the above issues are deeply baked into the day-to-day activities of everyone at the company. Things used to work well that way in the past, but as the company added more products and went after different kinds of customers, or as customers themselves changed, as they often do, what used to work well no longer does.
Those that have been with the company for a while will find it difficult to notice because what is routine becomes the background no one notices.
That is why internal assessments made by an outsider are imperative. Outsiders are needed to ask the “obvious” questions to which no one has any good answers. People in the room start looking at each other, waiting for someone to provide a decent response. You will find here some of the kinds of questions you should be asking.
Don’t spend more money doing more of what is evidently not providing you with the results you expect.
Get outside perspective. Do thorough investigative internal assessments of your company–starting with Sales, then Marketing, then Customer Service, and finally with products. These should be completed in about a week so as to maximize the learning and better connect the dots.
It will be hard to impossible for your Management Team to set aside a whole week to do thorough internal assessments. It will be even harder for your team to stay objective and intellectually honest in asking tough questions, and especially in explaining why they continue to do what they do.
If you seriously want to achieve Predictable Revenue Goal, you must know what is preventing you from doing that. To find out, you must conduct thorough internal assessments. Get outside help to come in, interview, review, analyze, and report back to you within a week.
SOMAmetrics has the expertise to conduct a thorough assessment of your company’s systems, processes, and people. Call us at 510 206 9263 for a free initial consultation.