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?