The best CEO’s not only motivate their teams to hit aggressive goals, they oversee a process that gives their functional leaders a road map. You and your team need be in lock step on how much growth will come from modifying prices, stealing market share, new products, new markets or hybrids of these levers. Ideally a process exists to understand the potential of these levers, but when it does not, you now need to slow down to speed up by developing a road map.
Being in lock step means your entire organization is aligned. You and your CFO will be aligned with Product, Marketing and Sales. Each functional leader will know the part they are to play.
Data is the underlying thread needed to align your organization to a road map. This may be frustrating to hear because you have heard the siren song of data and big data for years now. Meanwhile your sales teams keep complaining the prospecting lists are useless and marketing does not have enough clean prospects to make a difference. You have no time for this, the calendar is causing anxiety. And unfortunately, anyone who says they have a silver bullet is steering you wrong.
What must be done is first answer where the growth will come from. Even with data challenges, you can develop a roadmap within 3-6 weeks to have the answers you need through market and account segmentation.
What can segmentation do for you? Download our Segmentation Tool to determine where growth will come from.
Once you have the segmentation in place, here is the great, good and bad news:
- First the bad news. It will be 24% less accurate next year. NetProspex reported that data decay occurs at a rate of around 2 percent per month. Its president, Michael Bird, calls this problem a “huge potential nightmare”.
- The good news is, this is easy to remedy. Let your Sales Operations team oversee the continual maintenance of the models by having internal resources or outside help.
- The great news is that your entire organization will have one source of truth. And you care about this because many more operational decisions can leverage the same song sheet.
When you have account segmentation, knowing how big the sales organization should be is one step away. From there your team can assign the right accounts to the right representatives. They will know the roles and competencies needed since you will know how much growth will come from existing accounts, new logos or new products. Sales can set the right quotas and finance will be able to more accurately forecast revenues and costs. Marketing will know the plays they need to run. Product will know how much R&D to devote to new products vs how much they need to integrate their products to ease up-sell and cross sell.