Today’s topic is how to evolve your strategy to stay ahead of the market. Joining us today is Jeff Ray, the Chief Executive Officer for Ellucian. A worldwide leader, Ellucian provides software and services to the higher education market. 18 million students around the world are touched by the software tools each day.
Strategic time horizons are changing. 5 year strategies are getting compressed to 3 year strategies and 3 year strategies are getting converted to 1 year operating plans with quarterly agile iterations. This time compression requires the CEO, and his executive leadership team, to build the capabilities associated with strategy evolution.
Listen as Jeff and Greg discuss how revenue growth, return on invested capital, and cash flow linked. Jeff describes Ellucian’s advantage of a vertical market focus and the benefits to allocating resources.
Download our 10th annual workbook, How to Make Your Number in 2017. Turn to the corporate strategy section that begins on page 52 of the PDF.
Jeff guides his company to focus on the purpose of the company instead of the product. The purpose of Ellucian is student success. You avoid falling in love with your product and better understand how to drive revenue, short-term and long-term.
During the interview, Jeff answers these questions:
- Is all growth equal, or do different types of growth earn different returns on capital?
- If you had to classify the drivers of growth into the three categories how would you do so?
- Market expansion- high water raises all ships meaning overall expansion in the market is the primary driver of growth.
- Market exposure- growth will come to you by exposing your company to new growth markets you previously were not in.
- Market share performance- you are in a mature market and growth will come by taking share from competitors.
- In your business, how are revenue growth, return on invested capital, and cash flow linked?
- How did you connect the capital efficiency of the sales and marketing team, typically expressed in the ratio of customer life time value-to-customer acquisition cost, to total shareholder value?
- Which investments create the most value for shareholders over the course of your strategic time horizon- investments in products, services, marketing, or sales? How come?
If you need more help with your corporate strategy, download our 10th annual workbook, How to Make Your Number in 2017. To request a workshop with an expert simply sign up for a MySBI account and check the box in your preferences to request a workshop.