The Johnny Grow Professional Services Growth Formula

Highlights

  • The Johnny Grow Growth Formula draws on our industry research to surface and replicate the most influential revenue growth strategies and best practices proven by the Best-in-Class professional service organizations (e.g., the top 15%.)
  • It's a replicable model that advances our primary research findings into prescriptive actions that achieve forecasted results. When you repeat the methods that most drive revenue growth for the industry's top performers you can realize similar results.
  • The Growth Formula is an agile implementation approach that balances the right mix of strategy, best practices and technology.
Johnny Grow Revenue Growth Consulting

The Johnny Grow Professional Services Growth Formula is a proprietary 3-step approach that brings simplicity and clear direction to systemically grow revenues.

Company Growth Formula

Step 1 applies Predictive Revenue Analytics (PRA), which are predictive models built with company data and industry benchmarks, to identify the top improvement areas, low hanging fruit, and measurable revenue uplift. These predictive models forecast the financial upside for any proposed growth initiative to ensure the company is pursuing the most effective or highest impact opportunities.

Step 2 is a Playbook. This is a collection of the evidence-based best practices used by the Best-in-Class performers (i.e., the top 15%) to outperform their competitors (i.e., the remaining 85%.)

Step 3 are the professional services analytics that measure progress and variances in need of swift remediation.

1

Prioritize the Goals that Deliver the Biggest Uplift

Research shows that the top performers design an all-of-company revenue model and pursue different goals than their lower performing peers.

Revenue goals are broken down by contributing department. For example, the top marketing goals include growing marketing's contribution to the sales pipeline and earned revenues. Top professional services goals include maximizing billing rates and utilization while minimizing invoice leakage and staff attrition.

The growth model often starts with the top goals used by the Best-in-Class professional service firms because they have demonstrated those goals deliver the biggest revenue impact.

The goals are put into operational context for the adopting company using predictive revenue analytics. That allow management to forecast revenue and profit impact.

The predictive models also use industry benchmarks so that management can recognize where it stands relative to peers and apply What-If analysis or compare different improvement scenarios to see how they deliver different revenues and profits.

Professional Services Growth Formula Predictive Analytics

This forecast modeling allows us to rank the methods by revenue contribution, so they can be prioritized, and the company can pursue the biggest revenue uplift opportunities first.

A recurring pattern among lower performing professional service firms is that they don't know what methods deliver the biggest financial returns, so they pursue the easiest instead of the most effective. This results in a best-case scenario of incremental growth, or a much more likely scenario of preserving the status quo.

This first step is essentially your growth strategy. It defines what to do. It changes the question from what you can do, to what should you do based on data that shows what the top professional service firms do differently than their lower performing peers.

If you skip this strategy step, your goals become suspect and your execution becomes aimless.

2

Manage Execution with a Playbook

Step 2 is the Growth Formula Playbook. This is a collection of prescriptive plays, also called best practices or methods, that are sourced from the Best-in-Class professional service firms.

In step 1 we define strategy to make sure we're doing the right things. In this step we define execution to make sure we're doing things right.

Or put another way, where the prior step quantitively shows what the company should do to deliver the biggest financial impact, the Playbook defines the best ways to do it.

The Playbook eliminates speculation and guesswork by using the research to replicate the methods used by the industry's top performers to achieve the highest growth. Without research, any proposed growth effort is just somebody's opinion. With the research we have a measured and proven path to replicate.

Playbook Plays should orchestrate best practices to deliver the maximum revenue and profit growth in the minimum time, cost and risk.

Marketing Best Practices Blueprint

The above Playbook Blueprint is an illustration which shows the slated best practices to be used by the Marketing group to increase marketing's revenue contribution to the company. Plays support each targeted revenue goal and outcome with prescriptive best practices that include sequential process instruction, integrated technology, measurement metrics and forecasted payback.

The metrics are delivered in a pre-designed dashboard and use pre-configured alerts for real-time variance notifications and swift remediation.

3

Measure and Adapt

The thing about revenue growth plans is that they seldom go according to plan. That's why analytics are needed.

Digital dashboards display the most important key performance indicators (KPI) in an easy to consume visual interface. They 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.

Professional Services Dashboard

Most professional services reporting displays historical data. Better services reporting shifts from lagging to leading indicators. And the best reporting enables metrics to be interactive, so managers can perform What-If modeling and pro forma scenario planning.

An interesting thing about professional services dashboards is that partners and staff spend less time accessing information and more time applying the insights to make more changes to resource management and services delivery. That's the sign of successful reporting. If the information is causing operational changes to be made, it's working.

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

See the 3-step revenue growth model for the Professional Services industry.

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