Purchasing companies comes with an expectation of a rate of return on a timeline. The 100 day plan is a generally accepted strategy and process for long-term value creation. 5 primary 100 day program objectives are captured here in this article: 100 Day Plan Objectives.
Some amount of due diligence went into purchasing the asset. The general feeling is that there is enough understanding of the business, this is not as difficult as it seems, and the clock is ticking. But before time, money and people are sunk into the project, take a step back and truly assess the business.
Fail Fast, Fail Slowly, or Build for Growth
Two of the critical components to building and/or turning around a company are:
- A well thought out plan
- Flawless execution
Without both, the chances of success are limited.
- A well thought out plan with poor execution will lead to fast failure. A better result than failing slowly.
- A poorly thought out plan with flawless execution leads to prolonged underachievement. The least favorable result.
- A poorly thought out plan with poor execution is just, well, a train wreck.
- However, a well thought out plan with flawless execution leads to a successful result.
Spend Time Assessing the Asset from the Inside
Private Equity firms buy and sell companies as a regular cadence of the business. It has been done before with success and that experience helps increase probability of future success. However, an outsider rarely knows the nuances of the business from the outside. Maybe there was exhaustive research done on justifying the purchase, but it is still from an outsider’s perspective. As an operator of the company, there is ample more access to learning and understanding the business from an intimate perspective.
- How does corporate strategy align to product, marketing, and sales strategy?
- Is the talent in the organization capable of executing on the strategy put in place?
- Are the structure, processes, training and enablement scalable enough to absorb change?
- Does the customer and partner base invite the changes?
Having a bit of time and access to internal and external resources is a major asset. Taking time to truly assess the realities of the inter workings and what strategy has the highest probability of success. It’s the ready-shoot-aim vs. the ready-aim-shoot syndrome. The 100 day plan does not need to be written on Day 1. The 100 Day plan is critical but make sure it is the right plan. And it is equally critical the right people exist to execute on the plan.
The SBI Company Assessment
The SBI Revenue Growth Methodology is designed to look at all aspects of a company’s go-to-market strategy.
In a short period of time, SBI assesses critical functions such as:
- Department Functional Strategies
- Pricing and Packaging
- Global Channel and Distribution Coverage
- Organizational Design
- Sales Incentives and Territory Design
If any of these 6 examples are out of alignment, the chances of success rapidly decline.
- Are the departmental strategies interlocked and aligned to the overall company strategy?
- Is the talent in-line with the strategy and the expectations?
- Is the pricing and packaging of the product or services scalable, easy to understand, and accepted by the market?
- Is there a broad global distribution model that incentivizes 3rd parties and meets the margin goals?
- Is the organization aligned in an efficient and collaborative way?
- Are the sales incentives in place to maintain sales rep loyalty and avoid attrition?
These are just a small handful of critical insights needed before putting in the 100 Day plan. Walk before running. Spend time assessing the business from the inside before executing on a plan without all the information.
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