Knowledge Center


Article -> Unified Approach for Revenue & Income

Date Added: May 2008

NOTE: This article appeared in the May 18, 2008 issue of the Green Bay Press-Gazette.

Revenue and income represent the final article discussing resolutions to create sustainable profitability and growth. These are the result of the first four “resolutions” – strategy, people/employees, customers and marketing, and quality and service.

While revenue and income can increase without the prior four items, the goal of achieving sustainable profit and growth is to continuously improve organizational efforts. Yet, revenue (growth) and income (profitability) represent a dichotomy because 40 percent of best practice firms only achieve one or the other – not both.

In today’s economy, both are needed. Growth denotes uncovering new opportunities and competencies, taking risks, and having entrepreneurship. Profitability symbolizes developing existing opportunities and competencies, and improving current processes through Lean concepts.

Success to achieve sustained profit and growth requires a unified approach encompassing three main goals:  

  1. Defend and expand core business. Achieves profitability through continuous differentiation, positioning, and process improvements.
  2. Change core business. Achieves growth through mergers and acquisitions, joint ventures, and re-positioning brands.
  3. Leverage and develop core business. Achieves both profitability and growth by entering new markets, new geographic locations, and ancillary products.  

The unified approach relates to the four resolutions previously discussed. A strategy is needed to achieve the three goals. Your “people plan” provides resources to achieve strategy. The three goals convey growing customers organically and via acquisitions. And quality and service are a must for sustainability.

Nearly 40 percent of CEOs state “sustained top-line growth” is their No. 1 issue. In addition, 32 percent cite “consistent execution of strategy,” 28 percent note “profit growth,” and 38 percent list “excellence in execution.” These represent the top 4 CEO challenges from recent research.

The common denominator is execution – necessary to achieve sustained revenue and income. Without over-simplification, the best way to address these challenges, achieving sustainable profit and growth, is having a role responsible for doing so.

This is not the CEO’s role. CEOs are responsible for developing strategy and leading efforts to attain it. However, CEOs cannot execute it as they shouldn’t be involved in the minutia of every detail associated with it, nor have the time to do so.

A wise person said, “It takes money to make money.” Achieving stronger revenue and income – especially with a possible recession – is best accomplished by aligning strategy, people/employees, and customers.

Effective alignment requires relentless execution. June’s article will discuss talent management, and the necessity and description of a role for execution and alignment. The ROI: sustained profitability and growth.






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