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Identify the Key Drivers that Contribute to Success | Integrated Executive Solutions

Identify the Key Drivers that Contribute to Success

Identify the Key Drivers that Contribute to Success


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!


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!


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