The following is part three of a three-part series on transforming topline revenue growth. Part one may be accessed through the corresponding link here and part two may be accessed through the link here.
Over my 20+ years in studying business development, I have realized how typical Procurement processes make things more difficult than they need to be. The team of expert contributors to this article series and I have found throughout our careers that more times than not, delays between four and six months are commonplace for getting on the priority list for Procurement approval. At the same time, I would witness my clients feeling intimidated by Procurement to the point where they dared not intervene no matter what the impact on the company, and these were huge Fortune 500 companies. I kept thinking there must be a better way.
For me, it begged the question, could it be that many other people have this problem, but nobody has ever thought to see how it impacted the success of a company? Intrigued, I began to pay closer attention to and study this possibility, eventually becoming so inspired by this concept that I felt compelled to share these insights.
The contributors to this three-part series represent some of the smartest minds and strongest leaders in Procurement/Sourcing, Business Development, and Intelligence. From the outset of our discussions, it was clear we all agreed: achieving Level 4 Maturity for an organization is Zenith. It is a game-changing strategy that we are confident CEOs and other C-Suite executives will find immediately worthy of further thought.
Becoming the Tough Act to Follow
One of the most interesting organizations Valeo has studied was a leading financial services firm that we humorously termed, “The Borg,” a name that Star Trek fans may recognize. At the time, our client asked us to develop an understanding of how this competitor was able to achieve such positive and consistent revenue growth while the remainder of their industry struggled with achieving acceptable profitability. It was fascinating to learn about the intensity of their focus on collaboration and revenue growth.
One of our key findings was how well the target of our study had achieved Level 4 Maturity across every area of the company. They developed a culture, corporate personality, and senior leadership focus that ensured alignment to the CEO’s revenue growth objectives, breaking down existing silos across their company.
Every area of the company was led by executives with their eyes on the Level 4 ball. They regularly collaborated on these objectives and built teams that remained similarly focused. Employees that did not buy-in, or were unable to change or align, were asked to move on to make room for those who would embrace the company’s culture of collaboration and focus on revenue growth. While this was the most extreme example of a Level 4 Maturity our team had studied, it became so intriguing to us that we have been paying attention to the concept ever since, realizing this could become a game-changer for those who are willing to take the challenge.
Pizza Lunch and Learns Were Key
Another case study revealed the importance of employing the right kind of interpersonal communications. I had been asked to lead a study to understand how big box store sales personnel were motivated to promote one brand of consumer electronics product over others. Were they provided with bonuses, travel rewards, gifts, or other incentives? Were educational webinars produced, or other informational materials distributed? Our client had tried them all, with less than desired success.
To gather the needed intelligence, we reached out to several of our client’s competitors, as well as big box store personnel. We expanded our search to include a major cosmetics retailer who had the same business model as our client to see if there was anything new to be learned outside of the consumer electronics industry.
Ironically, the most effective method came down to something as simple and fundamental as showing up with pizza and conducting “Lunch and Learn” events for the sales staff. By conducting a series of in-person sessions where personal relationships were forged, product features and other benefits were shared, and important questions from the sales teams were answered, sales of the consumer electronics product soared.
The core lesson learned is that there is no substitute for effective interpersonal communications when seeking to collaborate and breakdown the silos that limit revenue growth. Sometimes it is the simplest efforts – such as showing up in person with a pizza and taking the time to collaborate with others – can make all the difference.
However, now a new challenge has emerged. There was a time when meeting face-to-face colleagues was as simple as walking down the hall or catching lunch together at a favorite local haunt. But, over time with the advent of smart phones and the ability to easily email and text, the dynamic has changed. More recently, COVID has also completely altered the way many businesses house their employees, allowing and even encouraging employees to work from home. Software products like Microsoft Teams not only became necessary but evolved into an attractive way to minimize employee travel costs and time.
Achieving Level 4 Maturity will require addressing the challenge of how to forge relationships in the current age of technology.
It is Not All About the Revenue
In parts 1 and 2 of this series, we examined the process and value of achieving Level 4 Maturity for any operational area, and for the entire company, with the focus being on growing topline revenue. Achieving maturity, however, is not solely about revenue. There are many benefits to “growing up.” For example, new career paths emerge for employees interested in moving to other areas of specialization within the company outside of their current divisions. This outcome leads to better employee retention, and more attractive career opportunities for valuable new hires.
Other benefits can include an increase in positive employee morale, retention, and performance, reduced financial waste, greater interest from valuable external resources, and a more open and accepting environment leading to innovative ideas and willingness to embrace needed change.
Follow the Yellow Brick Road
There are proven best practices that can guide you to reaching your own successful Level 4 Maturity. By taking these steps, you will come to clearly understand your current state, the state of your industry, develop targets, identify the best external resources needed, create meaningful plans, and measurements of success. These include building:
- Intelligence and analysis of best practices in your own and adjacent industries.
- An understanding and comparison of your current level of maturity and its impacts.
- An unobstructed vision of what Level 4 Maturity means for your organization.
- A correct plan on how to get there (this includes the right people, technologies, and other tools).
- External support to help build the plan and guide success.
- The means of measuring success and realigning as needed.
You May Not Know What You Do Not Know
Valeo’s experience has taught us that a large majority of executives, and very often those at many of the largest companies, are unfamiliar with the concept of blinded primary qualitative intelligence. Typically, their experience includes more traditionally known quantitative studies that yield statistical validity. However, the plan for achieving Level 4 Maturity will require a different kind of deep study into your top competitors and other organizations that have achieved top revenue results. This process begins with identifying top revenue producing companies in your industry and adjacent industries.
Next, a scope of research questions about these companies is developed that includes digging deeply into questions such as how siloed their organizations are, how effective they have been at aligning each operational area with their CEO’s strategy for revenue growth, and what key performance indicators (KPIs) they’ve created to measure their performance. The next step involves using an external research process to blindly study these companies and your own organization with the goal of creating a clear comparison. From these findings, a meaningful understanding of where the gaps lie will serve as the map that helps guide success.
External primary research analysts such as Valeo Strategy Group and others, use blinded research techniques like those used by investigative journalists to capture exceedingly difficult insights to obtain. These research analysts are skilled at reaching into organizations, on a blinded basis, speaking directly to executives and other employees to answer these questions. We then piece the intelligence together to tell an accurate story. An important target of the intelligence gathering process is to ensure immediate actionability.
Aside from providing the intelligence needed, the outcome of the research provides confidence in the planning and execution of the Level 4 strategy. The analysis provides the above and, based on findings, points to the need for experts that can further guide success.
Contributors to this article also offer excellent resources for procurement teams. Additionally, The Strategic Consortium of Intelligence Professionals (SCIP) provides a global view into the “A, B, C.’s” of Intelligence — “Artificial,” “Business” and “Competitive.”
Each of our contributors is committed to the concept of Level 4 Maturity and has deep experience to guide success such as in the development of KPIs, access to proven training tools, the right internal and external resources, as well as engaging with the right technologies, tools, and other measurement devices.
As you consider the concepts shared in this three-part series, a great place to start is to consider your own interactions with colleagues. Are you limiting yourself by remaining siloed in your work? What can you do, without any encouragement from leadership, to become a more collaborative professional? How do you engage with internal users of your resources? Do you dictate, or prescribe? Do you take the time to learn about the needs and challenges of your colleagues? Do you look for ways you can positively impact their performance through the efforts of your teams?
Stepping up to meet the Level 4 Maturity challenge can only result in your own performance improvement and greater revenue growth for your organization. We encourage you to reach out, take the initiative and become a Level 4 mature professional.
About Valeo Strategy Group
Since 2014, Valeo Strategy Group has applied sophisticated competitive intelligence techniques to capture and analyze global market intelligence to guide clients through the maze of potential paths they might take so that they can forge ahead with confidence, knowing they are making the right choices, every step of the way. Our unique value comes from decades of research and analysis experience combined with the ability to capture insights only trained researchers can. Valeo works with the range of Global 1000 industries such as healthcare, insurance and financial services, manufacturing, industrial, technology, and others.
On a blinded basis, Valeo examines competitors, B2B customers, potential acquisitions, won and lost sales opportunities, global markets, and new product development opportunities. When working with the Valeo team, you will be supported by seasoned professionals who understand your industry and global business. Beginning with your hypotheses, we examine the market and return highly customized insights that guide your choices, driving breakthrough strategies and market growth.
For More Information:
Valeo-strategy.com
866.476.9948
About the Author:
Lisa Hicks, Chief Strategy Officer, Valeo Strategy Group, LLC
About the Contributors:
Gary Anderson, Retired Chief Commercial Officer, Global 2000 B2B Financial Services
Michael Koontz, President, Simplsourcing LLC
Paul Santilli, CEO, The Strategic Consortium of Intelligence Professionals (SCIP.org)
Dawn Tiura, CEO & President, Sourcing Industry Group (SIG.org)
Michael Van Keulen, Chief Procurement Officer, Coupa
