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Strategic alignment is the path to delivering revenue growth consistently. It allows organizations to hit their number quarter after quarter, year after year. It does this by getting the functional strategies of sales, marketing, and product management into alignment with the CEO’s corporate strategy and the external marketplace.

 

The topic of today’s article is strategic alignment. The goal of this article is to illustrate the size of the prize for you and your business to achieve strategic alignment across the organization and externally.

 

Corporate Strategic AlignmentYour organization must be in alignment. If you’re not, the chances of making your number decrease significantly. There are four primary benefits to achieving strategic alignment.

 

If you need more help, download our 10th annual workbook, How to Make Your Number in 2017. Turn to the Revenue Growth Methodology section that begins on page 7 of the PDF.  To request a workshop with a strategic alignment subject matter expert simply sign up for a MySBI account and check the box in your preferences to request a workshop. 

 

There are four benefits to achieving strategic alignment.   

 

1.Probability of obtaining the revenue growth objective will increase

 

Only 22% of companies utilize emerging best practices. These organizations have a correct understanding of the impact these emerging best practices have on performance. They perfectly combine long-term strategy with in-year execution. They actively work to achieve strategic alignment within their organization and with the external market.

 

As a result of emerging best practices, 94% of these companies make their number. Meanwhile on the other extreme, only 34% of companies that use standard operating procedures make their number.

 

2. Customer Lifetime Value (CLTV) will increase 

 

SBI found best-in-class teams operating with emerging best practices have a 28% higher CLTV versus companies that follow standard operating procedure. This directly impacts top-line revenue for years to come. Every subsequent year it gets easier to attain the organization’s revenue growth objective. This leads to happier customers because you become more customer-centric in how you serve the market.

 

Each step starts with the customer in mind, which results in a focused customer experience strategy. This reduces churn, inspires your customers to buy more from you, and moves you into strategic partnership status.

 

3. Productivity per sales head count will increase 

 

As companies adopt emerging best practices, productivity per sales rep outpaces the industry by as much as 59%. This is true because the percentage of reps making quota goes up, the percentage of overall plan attainment increases, and win rate of forecasted deals increases. 

 

These increases occur because the entire organization is aligned around serving customers in the areas where they need the most help. This results in a more aligned and effective organization where the sales team is “truly” supported in its pursuit of revenue growth by leadership, product, marketing, HR, customer service and others.

 

4. Customer Acquisition Cost (CAC) will decrease 

 

The reductions in CAC are significant. Given that 35% of revenue is allocated across product, marketing and sales, a reduction in CAC of 31% drops more than 10% to the bottom line.

 

The fruits of cross-functional alignment increase collaboration among your teams. This translates to more efficiency. This provides the leadership team with clear direction on how to best allocate your people, money and time toward your revenue growth objectives. As you win more deals with the same investment, acquisition costs start to decline. 

 

The Path Forward? 

 

The path to strategic alignment is the implementation of a Revenue Growth Methodology (RGM).  These four benefits are realized when the RGM is implemented by great business leaders. These superstars consistently accelerate revenue growth and make their number year-over-year. 

 

This is because the RGM forces a standard of excellence across the enterprise:

 

  • Perfectly blends strategy with execution
  • Implements emerging best practices as opposed to standard operating procedure
  • Facilitates and achieves strategic alignment among the external market, the corporate strategy and the functional areas.

     

It’s difficult to grow revenue faster than your industry’s growth rate and faster than your competitors. SBI’s Revenue Growth Methodology allows you to accelerate your rate of revenue growth. It does this by getting the functional strategies of sales, marketing, product management, and human resources into alignment with the CEO’s strategy and the external marketplace.

 

Download our 10th annual workbook, How to Make Your Number in 2017. It’s the guide top leaders use to contribute to revenue growth in a consistent, predictable way.

 

ABOUT THE AUTHOR

Matt Sharrers

Studies and works with the top 1% of B2B sales and marketing leaders who generate above average revenue growth for their companies.
Learn more about Matt Sharrers >

Matt is arguably one of the industry’s most connected, and physically fit, sales leaders. He “lives in the field.” As a result, he is the foremost expert in the art of separating fact from fiction as it relates to revenue growth best practices. Because of Matt’s unique access to the best sales talent, private equity investors tend to turn to him first when they need to hire remarkable leaders to unlock trapped growth inside of their portfolio companies. Matt’s recent engagements include work commissioned by private equity leaders Permira, TPG, Bain Capital and Hellman & Friedman.

 

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