The Johnny Grow Manufacturer Revenue Growth Engine

Highlights

  • Business growth recommendations without supporting data are just somebody's opinion. The Johnny Grow Manufacturer Revenue Growth Engine is built on evidence-based best practices and backed by industry specific benchmark data. That data shows what the highest growth manufacturers do differently than their peers, and how they do it.
  • The Manufacturer Growth Engine draws on industry research to surface and replicate the most influential revenue growth strategies and best practices proven by the Best-in-Class manufacturers (e.g., the top 15%.)
  • Manufacturing research findings show the right mix of strategy, best practices and technology to create a repeatable growth model and eliminate speculation and guesswork.
Johnny Grow Revenue Growth Consulting

An Industrial-Strength Revenue Growth Framework

We work with companies across industrial sectors to solve a common challenge – how to achieve significant and sustained revenue growth.

The Johnny Grow Manufacturer Revenue Growth Formula is a proprietary 3-step model that brings simplicity and data-driven direction to systemically grow company revenues.

There are dozens of things industrial companies can do to grow revenues and every one of them delivers a different result. Executives don't want to experiment over prolonged periods to figure out what works. They want to quickly know the shortest route to revenue and profit maximization.

The Manufacturing 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 best guess strategies, unsupported plans or ill-conceived methods.

Here's how it works.

Company Growth Formula

Step 1 applies Predictive Revenue Analytics (PRA). This consists of pro forma financial models built with company data and industry benchmarks. The models identify the manufacturing best practices that will deliver the most revenue uplift. These predictive models forecast, compare and rank the financial impact of revenue growth best practices so that the manufacturer can select those that deliver the most revenue in the least time, cost and risk.

Step 2 is a Revenue Growth Playbook. This consists of operational Plays that provide guidance or executional instruction for revenue growth best practices. Many times, they are sequential instructions with prescribed activities, progress milestones, phase gates, performance benchmarks, key metrics and exit criteria. Other times they are brief but pointed recommendations such as a next best action.

Step 3 are the Growth Analytics. These measure progress in real-time and flag variances in need of swift remediation.

Here is a drill down into the three steps.

1

Model the Best Practices that Maximize Revenue Impact

Industrial research shows that the highest growth manufacturers apply an all-of-company revenue model where each revenue producing business unit applies data-driven methods to achieve predicted outcomes.

Revenue goals are broken down by contributing business unit. For example, marketing goals may include acquiring more manufacturing sales leads to grow the pipeline. Sales goals may include manufacturing sales best practices that improve close rates and revenues from indirect channels.

Customer service goals may include manufacturing best practices to increase customer share and lifetime value, pursue highly profitable after-market revenue streams or shift customer service from a cost center to profit center.

The Manufacturing Growth Engine saves time by first reviewing the goals and methods that drove the biggest revenue gains for the highest growth manufacturers. When you repeat the actions that most drive company growth for the industry's top performers you can realize similar results.

The goals and their supporting best practices are compared by using predictive revenue analytics to forecast revenue and profit impact.

Company Growth Formula Predictive Model

A recurring pattern among low growth industrial companies is that they are unsure of what methods deliver the biggest financial returns. So, they pursue what they know instead of what is most effective. This results in a best-case scenario of incremental and delayed growth, or a much more likely scenario of preserving the status quo.

A smarter approach is to apply data-driven analytics to calculate the least cost route to forecasted revenue growth. This pro forma modeling allows you to rank the manufacturing best practices by revenue contribution. They can then be prioritized so the company can pursue the biggest revenue uplift opportunities first.

These predictive analytics also use industrial benchmarks so that management can recognize where the company stands relative to peers. Managers can also apply What-If analysis or compare different growth scenarios to see how they deliver different revenues and profits.

This first step is essentially your revenue growth strategy. It defines what to do.

It shifts your business strategy from experimenting with unsupported initiatives based on good intentions to data-driven best practices that calculate outcomes based on research that shows what the industry's top growth firms did; and how they did it.

If you skip this strategy step, your methods become suspect, your execution becomes aimless, and your measures of success are unclear.

2

Use an Execution Playbook for Repeatable Outcomes

Step 2 moves from precision planning to prescriptive execution.

The Manufacturer Growth Engine Playbook is a collection of prescriptive plays that make best practices operational.

In step 1 we define a revenue strategy to make sure we're doing the right things. In this step we define execution plans to make sure we're doing those things right. Or put another way, where the first step quantitatively shows what the industrial company should do to deliver the biggest financial uplift, this step shows the Playbook Plays that define the best ways to do it.

Several CRM systems designed for manufacturers can deliver playbook plays at exactly the point where they can be applied to achieve a defined business outcome. The plays are not pie in the sky suggestions, but instead roadmaps that sequence the tasks needed to achieve a goal in a predictable way.

Plays orchestrate manufacturing best practices to deliver the maximum revenue growth in the minimum time.

Best Practices Blueprint

The Playbook Blueprint illustrated above is an example that shows how designated best practices roll up to deliver company financial results. Each Play supports a targeted revenue goal with evidence-based best practices that include sequential process instruction, integrated technology, measurement metrics and forecasted payback.

The metrics are delivered in dashboard and use pre-configured alerts for real-time deviation notifications.

3

Apply Revenue Analytics to Measure and Adjust

The thing about industrial company growth plans is that they seldom go according to plan. That's why analytics and information reporting are needed.

Performance dashboards are needed to display the most important key performance indicators in an easy to consume visual interface. They prioritize role-based information to show staff what needs to be done first, and then next, and so on. They identify deviations and trouble spots in real-time so staff can quickly intervene with timely course corrections.

Sales Dashboard

Most industrial company reporting displays historical information. Better reporting shifts from lagging to leading indicators. And the best industrial reporting allows performance metrics to be interactive, so staff can perform What-If modeling and scenario planning.

An interesting thing about industrial dashboards is that staff and managers spend less time finding and assembling data and more time applying information and insights that results in more frequent changes to operational execution. That's the sign of successful reporting. If the information is causing changes to be made, it's working.

Manufacturing analytics is one of only four sustainable competitive advantages. It's sustainable because making timely and accurate business decisions never loses its value.

See the 3-step revenue growth engine for the manufacturing industry.

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