Business Process

  Identify the key drivers that contribute to success.  Here’s an example.   ACME Company usually observes the following monthly sales performance: 45 total leads  x 20% close ratio  x $11,667 avg. per sale  = $105,000 ACME would like to double their monthly sales volume so they hire a consultant to drill down and develop a strategic approach to improvement.  The consultant found ACME’s composite performance is as follows: 30 “self-generated leads”  x 10% close ratio  x $10,000 per sale  = $30,000 15 “referred leads”  x 40% close ratio  x $12,500 per sale  = $75,000 The Sales Department consists of a salesman named Joe (who does “cold-calling” and runs 100% of the leads in the field) and a support team that does “cold-calling” only.  Joe and the support team...

When I was in grade school, we used to ride around the neighborhood on our bikes; they were single speed bikes.  When we got to Jr. High school, most of us “graduated” to 10-speed bikes.  What a concept.  Starting from a dead stop with a single speed bike was a big chore.  With the 10-speed bike, it was somewhat easier. You would start out in 1st gear – then systematically move up through each gear as you gained more and more momentum.  When you got to 10th gear – you were able to move a great distance and at great speed with just a single pedal stroke.  The key was to gain momentum – and keep it as long as possible. The same holds true in business.  It’s hard starting out, but with time and experience and a focus on the right business processes and practices,...