How Next Year's Revenue Target Suffers When You Don’t Get Strategic Alignment Right


The critical links include: market, corporate, product, marketing, sales and talent.


Strategic alignment starts with the “corporate” link and the CEO defining corporate strategy. To execute that corporate strategy, functional leaders align their own functional strategies to it.


None of the groups can be successful without the others.


The results of the exhaustive research we conducted for the 2016 report are clear. Strategic alignment is the only way to systematize revenue growth.


So what happens when you don’t get strategic alignment right? Spending money to pursue your revenue streams is risky without strategic alignment.


The Hazards of Misalignment:

The efforts of the product, marketing and sales teams produce 100% of revenue. To say those functional strategies are important would be an understatement.


The typical company spends 35% of revenue on these core strategic areas. Spending that much to pursue your revenue stream is risky when functions are misaligned.


What Top Leaders Know:

The difference between leaders who make their number and those who don’t is strategic alignment.


Aligning functional strategies to bolster each area’s success is the essence of strategic alignment.


Marketing can’t generate demand for poor products. Product management can’t close business deals without sales. Sales can’t achieve their quota without great products and solid leads. And talent is needed to execute all of the functional strategies.


Without alignment between functional strategies, sales can’t win. Sales quota suffers.


Success starts with corporate strategy, then trickles down the value chain. Top leaders know that functional leaders must first understand corporate strategy.This is where the action plan starts.


The Revenue-Generating Approach of the Top 10 Percent:

The Internet has changed customer behavior and the buyer’s journey. The sales rep is no longer the only source of information and solutions.


Many companies have not made changes in their approach to account for this. Especially with sales and marketing strategies.


These lagging companies launch scattershot tactics that are ultimately unsuccessful. They mistake tactics for strategy.


Companies that have changed their approach, however, are quickly climbing to the top. The change in approach that results in the biggest difference in sales revenue? Strategic alignment.


Companies that reach high levels of strategic alignment can expect to:


  • Cut customer acquisition costs by 26%
  • Boost customer lifetime value by 30%
  • Achieve double-digit improvements
  • Attain the largest amount of revenue growth in the shortest amount of time


The Secret to Your Success:

Strategically aligning your revenue growth strategy is critical to your success in 2016. There are six steps to achieving this:


  1. Market research
  2. Corporate strategy
  3. Product strategy
  4. Marketing strategy
  5. Sales strategy
  6. Talent strategy


We discuss these steps in detail in the SBI 2016 Research Report: How to Make Your Number in 2016. Download it here to gain access to important findings and step-by-step guidance.


And pay close attention to the SBI blog in the next several weeks. We will be breaking down the results of 12 months of exhaustive research. To get ahead of the curve, however, download the full report right now.



Mike Drapeau

Makes data and analysis come alive so clients can understand the “what” and “why” and design solutions that fit the environment.
Mike has led every function at SBI – Delivery, Sales, Talent, and Technology. Now he is a leader for Account Management, Private Equity Partnership, and long-term business development at SBI.


He has personally led over 100 projects for SBI over his decade+ time since its founding in 2006.


This starts by earning trust – of clients, of PE firms, of prospects. Mike obtains this by leveraging deep domain expertise, with more than 25 years in sales, competitive intelligence, sales management, marketing enablement, product management, pre-sales and sales operations. Mike relishes the idea of living in the field. So he does.


As a founding partner, Mike built out SBI’s library of emerging best practices for sales and marketing, which leads to evidence-based solutions, custom-fit to each client. Mike built himself many of the solutions now part of the Revenue Growth Methodology. And whatever he touches gets adopted. This is part of his commitment to making it happen in the field.
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