Post on 12-Apr-2017
transcript
Does your P&L reveal a faulty strategy or faulty execution?
When you study a P&L, what do you see?Numbers? Margins? Variances?
Or are you allowing your P&L to communicate a story about your current strategy?
When you study a P&L, what do you see?Numbers? Margins? Variances?
On a P&L, I see one line that’s about customers.The following lines tell me what it costs to
serve, keep, or grow those customers.
Let’s start with the part about customers, my favorite section.
CustomerFinding
GettingKeeping
Growing
Innovating
Fulfilling
Do you have your attraction and acquisition strategies nailed down?
CustomerFinding
GettingKeeping
Growing
Innovating
Fulfilling
No one wants to lose customers. Instead the goal is not just keeping the customer but growing the account.
CustomerFinding
Getting Growing
Innovating
FulfillingDo you have your attraction and acquisition strategies nailed down?
Keeping
We only earn the right to keep and grow customers if we continually innovate and keep upping our game in the way we serve them.
CustomerFinding
Getting Growing
Innovating
Fulfilling
No one wants to lose customers. Instead the goal is not just keeping the customer but growing the account.
Do you have your attraction and acquisition strategies nailed down?
Keeping
If the revenue on your P&L looks like this …
Customer
Innovating
Fulfilling
Getting
Finding
Growing
Keeping
Innovating
Fulfilling
1.What is the biggest pain point?2.Poor execution?3.Bad strategy?
Focus on one or two areas, create a plan, press play, and measure progress.
Let’s wrap up with talking about expenses.
There are only 3 types of expenses, just 3.
Let’s wrap up with talking about expenses.
Revenue
Costs that drive revenue
Strategic, controllable, and discretionary.Costs that drive revenue
Revenue
Costs driven by revenue
Costs that drive revenue
Revenue
Strategic, controllable, and discretionary.
Necessary, required, harder to control, some to little discretion.
Costs driven by revenue
Costs that drive revenue
Revenue
Strategic, controllable, and discretionary.
Costs driven by the business in spite of revenue
Costs that drive revenue
Revenue
Strategic, controllable, and discretionary.
Necessary, required, harder to control, little discretion.
Costs driven by revenue
Fixed, indiscretionary, reduction is slow and difficult.
Costs driven by the business in spite of revenue
Costs driven by revenue
Costs that drive revenue
Revenue
Strategic, controllable, and discretionary.
Necessary, required, harder to control, little discretion.
Spending #money is easy.
Spending it strategically requires far more thought, and much effort.
Are your cost strategies working? Or are they working you?
Expense Type Strategic Themes
Drive Revenue Optimize, enhance, improve, creativity
Driven by Revenue Waste reduction, speed/efficiency, accuracy, quality
Driven by Business Minimize, avoid (legally and ethically), alternatives
1.What is the biggest pain point?2.Poor execution?3.Bad strategy?
Will you look at your P&L the same way moving forward?
When you do, can you identify if you have a faulty strategy or faulty execution?
If so, will you have a plan?