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 are so effective at “cold-calling” that many of the leads don’t get seen.   First, Joe books his “self-generated” leads and then takes as many of the sales team’s “referred leads” as possible.

New Process

Since “referred leads” have a higher close ratio and a higher price per sale, the consultant recommends that Joe stop “cold-calling” and spend his entire time running “referred leads.”  The new results are as follows:

45 “referred leads”  x 40% close ratio  x $12,500 per sale  = $225,000

Mission accomplished.  Sales have doubled!

Conclusion

Is there something in your business you would like to improve?  Take the time to drill down and discover the real drivers that contribute to success and change your business process.

Think about it!

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 1^st gear – then systematically move up through each gear as you gained more and more momentum.  When you got to 10^th 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, momentum is gained.  With proper focus and discipline, your business will gain momentum.

Everything you do in business will either impair or hasten your momentum.  Next time you have to make a decision (which is daily), ask yourself “Will this increase or decrease my momentum?”

Take care to build and maintain momentum in your business.  Does this sound good to you?

Think about it!