Core ideology represents an organization's deepest sense of purpose, values, and vision. Foundational to a conscious business, this set of ideas embodies philosophical principles that establish a sense of meaning for a company and its stakeholders. Core ideology is not created. Rather, it is uncovered, articulated, and institutionalized.
A business strategy explains precisely how your company will provide customers what they will pay for at a price more than your cost in a way that your competitors cannot easily imitate. A comprehensive business strategy includes quantitate and qualititative assessments of many aspects of your business. Evaluations of your company's core capabilities, industry dynamics, customer focus, economics, competitors, unique knowledge, and operating constraints are mined for insights that are then integrated into a plan that provides a clear direction forward.
The laws of economics like those of physics cannot be broken. It is critical for growth companies to understand how the economics of their industry and their businesses work and to design a strategy accordingly. Being able to quantify the likely impact of choices creates profitable growth. To win the game, an organization must first know the rules of the game.
Execution is viewed by Stagen as the central unlocking move for most growth companies. It includes the prioritization of goals and allocation of limited resources ("trade-offs"), adherence to disciplines work planning and project management, acknowledging the importance of personal productivity, and fostering a culture that values making and keeping commitments.
Revenue enhancement involves understanding customer needs, developing targeted products and services, and tactically executing activities that drive revenue.
All customers are not alike. Customer segmentation is the process of grouping different customers into distinct segments that have similar needs and behave in similar ways. Each customer segment may require a unique approach to sales, marketing, pricing, and feature set. No company can be all things to all customers. A more rigorous approach to customer segmentation can significantly improve a growth company's marketing and sales effectiveness and efficiency.
Product development is the process by which new products or services are created, evaluated, and launched. There are two parallels path involved in the process: One involves what is needed from external research on changing customer requirements and competitive offerings; the other involves what is possible based on internal idea generation, product design, and engineering.
Channels include retail, wholesale, distributors, online, call centers, field sales force, advertising, partnerships, and joint ventures. A well-designed channel strategy (combined with disciplined management) can improve customer satisfaction, increase revenue, and reduce cost, resulting in a significant bottom-line impact. Stagen helps growth companies optimize their approach by prioritizing current and future channels in terms of customer needs, revenue, competitive position, and margins
Pricing is the science of maximizing the yield for every product or service sold. A well-chosen price delivers optimum profitability while meeting the reality of the marketplace and supporting a product or service's market positioning. An analytical approach to pricing is one of the most powerful profitability levers because each additional dollar earned drops directly to the bottom line.
Marketing messages-delivered through various print and digital media-communicate with customers and generate demand. Examples include brochure, sales presentations, postcards, print advertisements, television advertisements, online ads, and websites. Few growth companies possess a fully integrated, highly leveraged marketing communications strategy. Stagen helps its clients optimize their marketing communications to more effectively reach their audiences, dramatically increasing the return on marketing (ROM) investment
A sales model objectifies and optimizes an organization's selling processes. It includes four elements: a coverage model (determination of which customer segments will be covered by which channel); compensation (how different sales roles are incentivized); the sales cycle or funnel (the process and timeframe required to move a customer from initial interest to closure); and the sales tools available to salespeople. In order to make the move from scrambling to scaling, growth companies must formalize their sales model and establish sales leadership separate from the CEO.
Sales management is the day-to-day execution of an organization's sales model. As growth companies move from the personal selling of the entrepreneur to team-based selling, the ability to focus sales activity on the most effective and highest priorities becomes vital. Key tools include defining the frequency and nature of sales cycle communication, creative yet judicious use of sales conference, and motivation techniques. Effective sales management by a growth company can make the difference between achieving moderate growth and becoming an industry leader.
Cost management incorporates the strategies and tactics that managers use to minimize fixed and variable costs, leverage overhead, and drive efficiency.
A service model documents precisely how an organization creates value for and serves its customers. In order to scale, a growth company must institutionalize service model practices so that they can be repeated at any location and ultimately scaled to create higher margins with growth. The service model represents current best practices and continually evolves through customer feedback, team-driven improvements, and changes in strategy.
As organizations work smarter, not harder, they increase their productivity by producing more value for every dollar invested. To drive organizational productivity, growth companies that effectively scale leverage new technology, process innovation, employee training and development, and higher personal productivity.
Fixed cost management is the ongoing effort to reduce fixed expenses (rent, insurance, interest, management compensation, etc.). Fixed costs are reduced through continual efforts to benchmark costs, consolidate vendors, choose more leveraged approaches, and create competitive bidding and negotiation dynamics.
Cash conversion is the process of optimizing the management of working capital. It involves quickly and accurately billing customers, aggressively collecting accounts receivable, and paying vendors on a timeframe that optimizes capital use. Without disciplined cash conversion, high-growth growth companies risk developing a liquidity (cash availability) crisis.
Capital structure includes all of an organization's debt and equity sources of funds. Most growth executives have a limited understanding of options for sources of capital and ways to optimize capital structure. In order to scale and achieve long-term objectives, Stagen advises clients on how to use capital structure as a flexible tool for obtaining necessary and strategic funding.