“Removing Roadblocks on Your Path to Success”
Is Your Business Merely Surviving or Thriving?
Current studies show most businesses fall short of their growth objectives by a wide margin. Failure rates are as high as eighty percent. Why is attaining your expansion goals so difficult?
No matter what growth strategy you choose, your company’s infrastructure must be able to support its successful execution. Devising the strategy and implementing it are two very different things. The solution lies in focusing on your company’s core business.
Core Business Definition
Your core business is defined as the products, services, customers, distribution channels and geographic areas that yield the largest return on your investment (ROI). It is critical that systems be put in place to measure the overall performance of each segment of your core business. Peter Drucker, the world renowned business consultant, said: “you cannot grow what you cannot measure.”
Business Growth Assessment
The best place to start the assessment of your core business performance is with the following five questions:
Who are our core customers?
What is our firm’s main competitive advantage and how can it be strengthened?
What are the most attractive growth opportunities given our core business?
Which performance measurements should we use?
In what direction are key performance indicators going and why?
The answers to the above questions must include input from your employees, customers, senior management and external stakeholders such as vendors and strategic partners. Be sure to include both loyal and not- so-loyal customers in your research.
The probability of fulfilling your growth objectives is significantly increased when your organization has a clear and well-defined growth strategy combined with a strong execution infrastructure. One without the other can be devastating.
Key Performance Indicators
Pacific Crest Group’s (PCG) Key Performance Indicator Guideline defines frequently used metrics and illustrates how to use them. It provides a case study, sample forms and charts for your use. For example, PCG devised a unique Key Performance Indicator (KPI) strategy to give one of its clients the tools they needed to better manage their cash flow. The end result was a dramatic increase in the rate of their business growth.
In another case, Pacific Crest Group created innovative “Revenue-to-Staffing” Human Resource KPIs that assisted Business Owners in measuring how well employees completed projects based on agility, speed, teamwork and profitability.
How We Can Help You
Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all your business opportunities.
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
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