Ready to fast-track revenue growth?
To Grow Company Revenues, start with Data Driven Insights
So how do you most effectively grow an Architecture, Engineering or Construction company? That's a question best answered with data.
Research published in the Business Growth Report found that the highest growth Architecture, Engineering and Construction (AEC) companies (i.e., the Best-in-Class which achieved the top 15% growth) excelled in up to 9 revenue growth programs.
These 9 programs stood apart from all others in terms of their ability to deliver the most significant and sustained revenue impact. A relative comparison showing how these 9 growth programs were applied by each growth archetype is displayed below.
Here are some research insights that share how these programs impact revenue growth.
The above referenced research report found that AEC firms that actively managed a Revenue Growth Strategy achieved 2.8 times greater year over year revenue growth than those who did not. The Revenue Growth strategy is not your business plan. It's the selected revenue programs weaved into a roadmap to achieve targeted financial results in the shortest time and least cost.
As demonstrated by the results of the Best-in-Class AEC companies, advancing your growth strategy can increase annual revenue growth by 1.2 to 1.6 percentage points and EBIT margins by 1.4 to 1.9 percentage points.
AEC companies that cited corporate culture as a growth strategy achieved an average of 41% higher revenue growth than those who did not. They also achieved 14% higher revenue per employee and 8% lower staff churn. The research found that creating an intentional and proactively designed growth culture can grow annual revenue from 1.7 to 2.5 percentage points and EBIT margins by 2.2 to 3.1 percentage points.
Innovation significantly impacted AEC revenue growth. Companies with the highest new revenue streams invested 17-21% more funds into transformative innovation. On average, about 34% of their innovation budget was directed to transformative innovation. By comparison, AEC firms with lower new revenue streams and overall revenue growth allocated more than 90% of their budget to incremental innovation, which is typically limited to improving existing services.
The business growth research demonstrated that fluctuating the innovation budget allocation toward more transformative innovation can achieve annual revenue growth of 1.4 to 2.1 percentage points and EBIT margins by 1.9 to 2.9 percentage points.
Strategic alliances also separated low from high growth AEC firms. 92% of the highest growth companies actively used strategic alliances as part of their business growth strategy.
For this group, alliance sourced revenue remains a relatively small portion of overall revenue, but that portion grew 23% from the prior year. The research found that strategic alliances require ramp up time for on-boarding, culture alignment and collaboration, but once successful, show the potential to increase total annual revenue growth by 2.4 to 5.9 percentage points and EBIT margins by 2.7 to 6.7 percentage points.
Architecture, Engineering and Construction companies that realized the highest revenue growth assembled a combination of the 9 most impactful revenue growth programs. That helped them outperform competitors and achieve their business strategy.
Each of these 9 programs are solidified into evidence-based best practices that provide prescriptive implementation frameworks to be replicated by others seeking to achieve similar growth results.
Architecture, Engineering or Construction Company Growth Strategy
The Johnny Grow AEC Growth Formula is a proprietary 3-step model that brings simplicity and data-driven direction to systemically scale company revenues.
There are dozens of things you can do to grow revenues and every one of them delivers a different result. Executives don't want to experiment over extended periods to figure out what works and what doesn't. They want to quickly know the shortest route to revenue and profit maximization.
The AEC Growth Formula models, forecasts and compares best practices and financial levers to quickly prioritize those that maximize growth. It's a precision approach and alternative to pursuing company growth by investing in wishful strategies and best guess explorations.
Here's how it works.
We start with Predictive Revenue Analytics (PRA), which are pro forma financial models that forecast the revenue uplift from each of the top 9 AEC revenue growth best practices. For example, in the AEC industry, four of the best practices that deliver significant and sustained revenue uplift include innovation, revenue operations, company culture and customer affinity.
Using predictive analytics to measure the financial impact from each best practice, as well as combinations of best practices, allows management to compare and rank them so that the company can select those that deliver the maximum revenue in the least time, cost and risk.
We then move from precision planning to prescriptive execution with a Revenue Growth Playbook. Plays provide guidance or operational instruction for revenue growth best practices. Many times, they are execution plans with sequenced activities, progress milestones, phase gates, performance metrics and exit criteria. Other times they are brief but pointed recommendations such as next best action.
We then apply Growth Analytics to measure progress and flag variances in need of swift remediation.
We use performance dashboards to display the most important key performance indicators (KPI) in an easy to consume visual interface. The dashboards prioritize role-based information to show what should be done first, and then next, and so on. They identify variances and trouble spots in real-time so staff can quickly intervene with timely course corrections.
Most AEC reporting displays historical data. Better reporting shifts from lagging to leading indicators. And the best AEC reporting enables metrics to be interactive, so managers can perform What-If modeling and scenario planning.
Helping Clients Grow their Business is our Business
Our core competency is helping clients implement best practices that accelerate revenues and profits.
Our evidence-based revenue growth best practices are validated by industry research, include prescriptive frameworks, leverage technology automation, and have purpose-built measurement systems (i.e., dashboards and predictive analytics.)
And to de-risk our programs, our services include program management, change management and governance oversight.
Johnny Grow Signature Services
Industry Research Shows What the Highest Performers Do Differently
The Business Growth Report ranked the growth strategies, methods and technologies that delivered the biggest impact to company growth.
The report identifies what the highest growth companies (i.e., the top 15 percent) do better and differently than all other lower growth companies; and how they do it.
It provides data-driven findings and insights that advise how the highest growth companies achieved their extraordinary results. Results which may be replicated.