Microsoft PowerPoint - RevenueBestPractices.ppt [Compatibility Mode]Revenue Best Practices Checklist for 2012Revenue Best Practices Checklist for 2012
For Technology VAR’s and Outsourcing Solutions Providers
Revenue Growth Strategies for 2012 and Beyond
Portfolio of Revenue Sources: Revenue Management Best Practices: New clients come from a portfolio of revenue
sources including: Targeted 1:Many Regional or National Targets using Direct Sales and/or Principal Selling Clients Referrals
Revenue Management Best Practices: 1. Expansion via Strategic Alliances,
Channel Development, Alternative Distribution
2. Evaluate M&A Corporate Development
3. Ensure Efficient Client Acquisition costs and best-in-class Unit Economics
Assets: Client testimonials (1 to 3 minute video clip) and referrals are promoted, celebrated, and a pragmatic, proactive process exists to collect from all within the first hundred days and at each major product implementation. Measure Brand Awareness twice annually to gauge market awareness and ascertain market intelligence. Provide educational nurturing at each stage of the buying process as well as “offers” to take the next
i h b i d k i “ b ”step in the buying process and make it “easy to buy.”
Targeting Mid-Market Buyers Penetrating the mid-market requires intense “TARGETING” of communities on a routine, repeated basis with strategic messages supported by “Utility-Value-Added” use-cases from clients/partners.
Landscape Mid-Market Target
Call Centers 500 Contact Center Association, www.contactcenterassociation.com/ | The National Association of Call Centers, www.nationalcallcenters.org/ | American Teleservices Association, ATA, www.ataconnect.org/ | Call Center Associations, www.customerservicemanager.com
Security 899 ASIS International: , www.asisonline.org | ISSA.org, www.issa.org | Security Industry Association, www.siaonline.org/ | International Association of Professional Security Consultants, www.iapsc.org/ | National Association of Security Companies, www.nasco.org/ | Information Technology - Information Security – Information ..., www.isaca.org/
C C / | f /Healthcare 4,524 AHCA - American Health Care Association, www.ahcancal.org/ | AHIMA Home - American Health Information Management Association, www.ahima.org/
Accounting 800 AICPA
Telecom 2,084 Telecom Association Home Page, www.telecomassociation.com/ | Telecommunications Industry Association (TIA), www.tiaonline.org
Financial 3,424 American Financial Services Association, www.afsaonline.org/ | BAFT-IFSA, www.baft-ifsa.com/ | Community Financial Services Association of America, cfsaa.com/
Energy Services 1 310 Association of Energy Services Professionals, www.aesp.org/ | National Energy Services Association, www.nesanet.org| NAESCO: National Association of Energy Service Companies, Energy Services 1,310 ssoc at o o e gy Se ces o ess o a s, aesp o g/ | at o a e gy Se ces ssoc at o , esa et o g| SCO at o a ssoc at o o e gy Se ce Co pa es, www.naesco.org/ | AESC, www.aesc.net/
Non-Profits 3,087 National Council of Nonprofits, www.councilofnonprofits.org/
Insurance 2,084 American Insurance Association, www.aiadc.org/ | Property Casualty Insurers Association of America, www.pciaa.net/ | National Association of Professional Insurance Agents (PIA), www.pianet.com/ | National Association of Insurance Commissioners (NAIC), www.naic.org
Technology 9,806 SaaS Showplace, www.saas-showplace.com/ | Sramana Mitra, ZDNet, Jeff Kaplan
Real Estate 3,726 Property Management Association, www.pma-dc.org/ | NPMA | National Property Management Association, www.npma.org | IREM : Institute of Real Estate Management, www.irem.org/
Holding Company, Institutional Investor
Mid-Market Research Findings from 2011:
Since 2006, we conduct quarterly research surveys on utilization and best practices for technology and outsourcing buyers.
We also, interview 400 businesses every year to determine the market landscape forecast and
I. The drivers have shifted from license software to SaaS solutions, from cost savings to capability enabling solutions, and from functional specific to business-centric.
determine the market landscape, forecast, and opportunities.
Defining the SME Middle-Market Buyer: The mid-market is significant as the table illustrates the potential universe of SME & mid- market employers with 50 to 10,000 full-time W-
II. Utilization improving based on adaption of technology to meet today’s work requirements (flattening span of control, global multi-location complexities, younger workforce, mobile and contingent workforce).
p y , 2 employees:
What will satisfy the needs of the SME market is
TARGET (thousands)
Mid-market 100,000 10,000 25,000 100,000
III. Recurring oriented business models are the market leaders. Portfolio and distribution key contributors to more efficient model leaders.
What will satisfy the needs of the SME market is simplifying the technology and functional processes with a business-centric mindset.
The majority of businesses consider themselves mid-market enterprises. They have multiple vendors complicated by changing business vendors complicated by changing business demands and evolving landscape, and lack efficient and effective processes and expertise to adequately fit their needs.
The ideal customer buys to simplify their business, while valuing the solutions based
h l d ith i d t ti l ifi approach coupled with industry vertical specific domain expertise.
By making the buying process easy, the long- term profitability potential is great.
By targeting multiple partners that can generate significant revenues our client companies expand into additional regions, communities, and offerings.
Benefits of “TARGETING” to Expand Revenues
T d ’ k t i TARGETING t lit th t i th b bilit f i t t Today’s market requires a TARGETING mentality that increases the probability of consistent success. Strategic Effectiveness + Programmatic Execution creates exponential wealth. i.e. success comes from
your brand being #1 or #2 in each targeted community, plus assets are effectively deployed, and ongoing operational execution seeks consistent improvement.
By implementing effective TARGETING programs clients have found: Improved personnel productivity, Decreased sales cycle times, Improved conversion rates, Increased year one revenues, and Higher total net lifetime value.
M&A Corporate Development: A Case Study Situation Audit: Perquest’s mission was to provide the first and exclusive software-as-a-service (SaaS) HRO services to small and large businesses via a single technology platform.
Ephor Process, Approach, and Sequence of Events: I. Opportunity & Outcomes >> The attractive investment returns in the payroll business are
generated by acquiring annuity streams of recurring revenue at a low cost, and reselling the revenue at exit at higher multiplesrevenue at exit at higher multiples.
II. Creating a Seller >> Ephor identified an opportunity in the market: the legacy payroll providers have been unsuccessful in providing clients with a combination of state-of-the-art technology, coupled with business centric services, premier end-user friendliness and superior customer service and support. se ce a d suppo t
III. The “Yellow Brick Road” >> Ephor conducted the research, presentation, and negotiations and signed up numerous qualified acquisition targets. And then facilitated the integration efforts and ensured integration milestones were on-track and effectively managed.
Results: I. Within 30 days a short-list of targets was researched and handicapped, and the corresponding
Playbooks, Financial Acquisition Model, and Integration Plan was created. II. Six (6) acquisition targets were identified and signed Letter-of-Intent within 180 days. III. Perquest was acquired by ADP in 2010.
M&A Corporate Development Case Study
Unlike traditional M&A, our approach targets multiple acquisitions of teams, capabilities, and partners so our client company creates dominance in a region, niche, or community.
GrowthSTEP Corporate Development Methodology Garry Meier and his associates developed the methodology to steer
> Develop Targeted Acquisition Pipeline (Size and Scope Each Potential)
a. Handicap All Potential M&A Potentials & Compare Potentials to Strategy
methodology to steer platform companies in their corporate development efforts.
The methodology traces its roots back to IBM
Segment C
Segment B
Segment A
a. Create Sellers b C fi t D Dili
its roots back to IBM, Edward Jones & Co, Technology Service Solutions. It is a lock-step program for ensuring corporate development activities are highly
Segm ent C
Segm ent B
Segm ent A
b. Confirmatory Due Diligence c. “Yellow Brick Road” Intro Presentation d. “Happy Ending” & Constituency Alignment
Discussion
“Y ll B i k R d Pl b k”
activities are highly profiled, qualified, acquired, and integrated.
B > “Yellow Brick Road Playbook” a. Precise Valuation Model b. Integration Plans c. Due Diligence d. Closing Documents
Seg ment
> Transactions Qualified Investment
Ephor Group is a strategic advisory firm which helps our clients (technology, VAR and outsourcing providers) create wealth by achieving their growth goals.
Ephor was created as an Benefits of our methodology approach Ephor was created as an alternative to traditional consulting. We put our own “skin in the game” and truly work in the company’s interest as part of our Perform Model
gy pp (as opposed to traditional consulting, coaching or iBanking) includes our Methodologies and our Perform Model.
Ephor Perform Business Process™ methodologies: FlightPlan™ for GoToMarket ensures effective/efficient revenue strategy. as part of our Perform Model
and we insource our Methodologies to our clients.
Ephor Group was founded as the “family office” for Garry E.
FlightPlan for GoToMarket ensures effective/efficient revenue strategy.
GrowthSTEP™ guides companies to their next plateau including Alliances, Distribution and/or M&A Corporate Development.
Boardwalk Management Science™ provides Controls and Intelligence the family office for Garry E. Meier and other high net worth individuals to provide advisory services to our investments and portfolio of clients.
and ensures optimum asset creation, monetization and value realization.
Read more about our methodologies online.
Ephor Group’s approach is pragmatic, proven, and performance-oriented. Ephor works with technology and
Intelligence •Market Research •Landscape: Competitive and Buyers
Controls •Governance Boardwalk
Assets •Brand •Sources of Revenue •Insourcing approach
outsourcing providers. We have led, advised, and invested in some of the most successful business service companies in the Americas.
Buyers •Wealth Creation Drivers
•Industry Comparables •Competitive Intelligence
•Insourcing approach creates processes
Garry E. Meier founded the Ephor Group in 2002 to apply the f th d l i d h h ld l
Ephor Group Background
performance methodologies and shareholder value processes Garry and his associates developed over the past three decades.
We are an experienced, highly effective, and results-driven team that combines over 150 years of domain, functional, strategic
t d b d l l ti i d i management and board level expertise in our domain areas.
Ephor Group focuses exclusively on technology enabled outsourcing oriented business models specifically in the areas of BPO, Human Resource Outsourcing, IT Outsourcing, Marketing
d l hServices Outsourcing and Healthcare Business Services.
Our focus allows Ephor to identify and forecast unsatisfied outsourcing demand curves for the future. As a result, we identify organizations that provide value propositions that can satisfy the future demand curves.
Ephor Group creates wealth for our financial partners and operating companies by developing or transforming the existing business model into an emerging platform or sector impact participant. Often by increasing organizational effectiveness and efficiency, adding product and distribution venues, creating scalable service delivery constructs, all combined with a measurement and metric centric management process.
Ephor Group Clients: A track record of results Solving the Value Equation.
Recent Client Accomplishments:
Client engagements: Brand Refresh and GoToMarket: Sentric (Workforce Management Technology) Product Launch: ProBenchmark (SaaS) Polus Group (FAO) Bullseye (SaaS)
Ad i i t ti & T ti l F ti l
Recent Client Accomplishments:
• Grew provider from $1M to $9M in 18 months and then strategic investment by Hewitt.
P j t i t d t ti l
Product Launch: ProBenchmark (SaaS), Polus Group (FAO), Bullseye (SaaS) M&A Corporate Development: Serenity (IT MSP), Moderor (HRO) Expansion: Bluware (Staffing), Novo (Call Center, Contact Center, BPO).
Board Advisory Clients:
o Revenue: $480m Turnaround o Exit: Divestiture of Brands
Strategic Buyer: TeamStaff Strategic Buyer: Spherion
Tandem/(OSI) (Recruiting & Staffing) Chairman 1998-2001
o Division Revenue from $180m to $280m
o Exit: Financial Buyer: Cerberus
• Projects oriented transactional business transitioned into recurring solutions provider.
• Acquired add-on “book of business” which added additional revenues,
Strategic Buyer: Spherion
HR America (ASO) Chairman 2002-2006
o Revenue from $3m to $22m o Exit: Strategic Buyer: Gevity
Talent Tree (Recruiting & Staffing) Chairman/CEO 2002-2005
o Revenue from $90m to $145m o Exit: Financial Buyer: Chrystal
SmartTime Software (T&L Mgmt) HR Advance (Benefit Admin)
clients, and team members.
• Rolled up $30M of payroll service Chairman/Interim CEO 2004-2007
o Revenue from $6m to $15m o Exit: Strategic Buyer: Kronos
BOD Advisor 2008-2010 o Revenue from $9m – $19m o Exit: Strategic Buyer: Hewitt/AON
Perquest (Payroll/WFM) BOD Advisor 2007-2011
o Revenue from $4m to $19m E it St t i B ADP
Achilles (HRO) Chairman 2007-Current
o Revenue from $4m to $11m E it C t H ldi
p p y providers to create a national provider of “Workforce Management Solutions.”
• Doubled staffing provider revenues from $40M to $80M.
o Exit: Strategic Buyer: ADP o Exit: Current Holdings
HRO Expertise
OSI/Tandem Staffing Talent Tree
B fit Eli ibilit d Supporting the Needs of the
Worker”
Advisory Services Financial Administration
Payroll, AP, AR, Expense GoToMarket, M&A Corporate Development, Board Governance
Outsourced Billing and Financial Reporting
Economic Efficient Alternative
Calls to Action
1. Examine your Strategy. An Effective Strategy is Required including Brand Asset Management Model
Star Performer Capabilities
Distributionis Required including Brand Asset Management, Go-To-Market, Product Management, and Channel Management.
2 H M k t V lid t d G th St t Capabilities2. Have a Market Validated Growth Strategy. Focus on expansion via a portfolio of products and revenue sources.
Contact us, when you need interim 3. Do Not Accept Mediocrity. Mediocrity
Promotes Failure! Board or Management help, or a Chief Marketing Advisor or Chief Strategy Officer, as there are proven, pragmatic methods for expanding revenues.
Getting started, we can discuss and share insights regarding: I. Star Performer Checklist to Increasing Valuations for your industry.
© 2011 Ephor Group LLC | 1 (800) 379-9330 | www.ephorgroup.com
II. Revenue Growth and Expansion Plan.
III. Our Industry Investment Thesis for your sector.
“In 2012 and beyond, wealth will be created for those unique revenue models that are the most those unique revenue models, that are the most economically efficient, promote and excel at owning top brandshare in their communities, and that focus on a few key strategic initiatives (i.e. customer satisfaction).”
-Garry E Meier Ephor Group Founder-Garry E. Meier, Ephor Group Founder
> Download additional resources at: http://www.ephorgroup.com/resources.asp