The Importance of Internal Assessments
Every CEO wants to achieve Predictable Revenue Growth. However, companies that struggle to meet their revenue targets are often puzzled by their lack of results while continuing to engage in detrimental business practices.
Here are some of the issues that our clients have struggled with:
- A team could reduce the amount of time spent on fulfilling customer orders by 40% through a simple change in workflow.
- A company that generated 57% of its revenues from just 2% of its customers was devoting 80% of its sales team’s efforts toward pursuing exactly the wrong types of customers.
- A company that was meeting its sales targets could not understand how cash flow was always a problem. It found out that 18% of its closed deals never converted into invoices because newly signed up customers canceled after experiencing frustration with protracted onboarding processes.
- A ten person sales team that received an average of 3,000 leads per month felt that they were not receiving enough leads. An interview of the team revealed that the team was getting such low-quality 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 even after turning in over 100 signed contracts per quarter. Despite this discrepancy, the sales team thought it was working hard and doing well.
- A company that was struggling to meet its revenue objectives repeatedly claimed 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 be thinking, “Well, those circumstances should have been easy to prevent in the first place. Our problems are more complicated than those.”
Perhaps they are. However, in each of the above cases, the company had a smart and hardworking management team in place.
So, why were these relatively straightforward issues allowed to persist for months, sometimes years, before being discovered?
One major reason is that all of the above issues were deeply entrenched within the everyday routines of company employees. Business operations had functioned smoothly that way in the past, but as the company added more products and sought different kinds of customers, or as customers themselves changed, as they often do, what used to work well no longer does.
Longtime employees of the company will find it difficult to notice these changes because what is routine tends to fade imperceptibly into the background.
That is why internal assessments conducted from an outside perspective are imperative. Outsiders are needed to ask “obvious” questions, some of which can be found here, that still manage to stump company employees.
Though it may be tempting to conduct an internal assessment yourself, internally-led assessments lack efficacy for various reasons. It could be very difficult for your Management Team to set aside a whole week for thorough internal assessments. It might be even harder for your team to stay objective and intellectually honest in asking tough questions, especially in explaining why they continue to do what they do.
Stop spending money on what is evidently not providing you with the results you expect, and get outside perspective. Arrange for 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 to maximize the learning and better connect the dots.
If you seriously want to achieve Predictable Revenue Goal, you must know what is preventing you from doing that. To effectively root out the problems at hand, , you need the analytical lens of an external source 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.