Strategies for Growth in 2012:

gurglejapaneseManagement

Nov 18, 2013 (3 years and 6 months ago)

75 views







Strategies for Growth in 2012:

Sync CRM and Financial Management to Drive Performance.


Financial Controls


Revenue Management


Intelligence


Real
-
time KPIs


Performance Targeting

SaaS F&A Platform


Management Science
reporting provides the routine visibility
executives need to lead daily performance, attract capital, and
outperform the competition. By synching CRM and Financial
Management; cash collection and revenue growth achieves
resource efficiency improvement.”


Strategies for Growth in 2012 eBook


“In this slow growth economy,

there will be bifurcation between leaders and laggards;


the best revenue strategies will outperform the competition,

and win the war for profitability.”







www.EphorGroup.com

2



Effective B2B growth strategies require capital efficient programs to reach
qualified buyers.


“Feet on the street” models are legacy thinking.


Multiple lead sources are required to be capital efficient.


Multi
-
tiered distribution is key.


Referrals from partners, alliances, and communities will

generate the majority of
new clients.


Legacy

Thinking

Revenue Strategy for 2012

Outcome of New Revenue Management Practice

“Feet
-
on
-
the
-
Street” Direct Sales

Multi
-
tiered Distribution

Lower Cost of Client Acquisition


Outbound Marketing

Inbound Marketing

Lower Cost of Sales Pipeline

Creation

Lead Generation

Partner Generation

Referral based

opportunity introductions.

Outbound Telemarketing

Market Research

Intelligence integrated

into ongoing routines.

Market to

Enterprises or SMBs

Market to Niche Verticals

Specialization = Improved Margins.

Revenue Growth Requires Timely and Efficiency Synchronization of All
Resources including connecting CRM and Financial Management

>

I
mprove Profitability by synching CRM and Financial activities, processes and reporting.

Best Practices for 2012 and Beyond include:

I.
Have a lower cost of sales than your
competition.


II.
Have a capital efficient pipeline generation and
revenue model.


III.
Utilize Technology
:


CRM, Social Media, & Marketing Automation


II.
Multi
-
tiered Sales Distribution Compensation
:


PRM, Agent, Alliances, Partners, Account Managers, Sales
Personnel


III.
A
Portfolio

of Sources and Mix.


IV.
Management Science

reporting to provide
visibility and proactive actions:


Pro
-
Activity of the 3 C’s: Cash, Clients, Contracts.


V.
Asset Management

ensures a lower cost of
customer acquisition and higher ROI for
spend.

3

Questions Answered by Synching CRM and Financials


Lenders, Bankers and Investors
want

comfort and visibility with
the financials delivered on a
routine basis.




Executives require visibility and
insights into daily performance
and profitability to effectively lead.





“Synching CRM & Financials insures
budgeted pro forma forecasts are
made into business realizations.”





















>

Lower cost of client acquisition
and greater
profitability

by client coupled with
predictable
sales forecasting
and budgeting because of
proactive management.

Cost of $1.00 of Revenues Varies by Channel:

Revenue Waterfall Management = Greater Profits
:

> How does your cost of client acquisition compare to competitors?

Email us at Polus for a complimentary report for your industry sector.

Questions Answered by Synching CRM and Financials

Benefits of
Management Science
reporting:



Management Science
helps overcome operating
gaps. Managers often work in relative isolation
from the market trends and leaders Managers
also often lack access to key information.


Too often, financials are not providing daily
operating indicators to guide day
-
to
-
day
employee priorities.
Management Science
provides the basis for predictable, sustainable
business execution and ensures that managing
growth and expansion financially ties to
operations.


Questions Answered by Management Science
:



Where to Focus to improve Cash, Revenues,
& Profitability.




Whom needs help?
i.e. which employees or
partners are underperforming. Which clients
need attention.




Where to focus resources.


6

A case study:

Management Science Drives Performance
:















Outcomes also included:


Improved Revenue Per Employee by almost $10k
per month employee.


Increased NLTV per client 2X.

Conversion Rate from Lead to Close

Channel

Referral


Crowded marketplace


Too much advertising


“Committee Buy”


Resource constraints


Buyers require Immediate ROI from a
Branded Leader


Partners

Direct

Marketing
is Hard

Partners Matter


Reputation = Lower cost of sales


Use of best practices from both
organizations

Team Management
is Key

Origination


Provide expertise and service


Must be committed to client outcomes

Management Science Required for Revenue Growth

Direct

CRM

Client Management

Upsell

Operations








Alignment

Upsell

New

Opportunity

from a Partner’ Client

MAPPING

Opportunity












> Download additional resources at:







http://www.polusgroup.com/resources.asp





“In
2012
and beyond, wealth will be created
for
revenue
models that outperform the competition
,
that are the most
economically efficient
, promote and excel at
client
satisfaction,
and invest in their people and
focus on strategic
initiatives
(i.e. customer satisfaction).”






-
Garry E. Meier,
Founder







Management Science Benefits

(financial and administration outsourcing drives Management Science)


Controls


Intelligence


Real
-
time KPIs


Performance Targeting

SaaS F&A Platform

“30 years ago, firms did their own payroll; while today the vast
majority outsource payroll.
Management Science
delivers
costs savings through F&A services that streamline cash
collection and provide institutional level financial controls that
every business needs to survive, thrive, and create
wealth
.”

-

Garry E. Meier

An Introduction to Polus Group


Polus Group, LLC is a Texas corporation owned and managed
by Ephor Group, LLC with certified PC CPAs.


Recognized as a leader in wealth creation models, Management Science, and F&A
services for technology oriented service businesses.



Polus Group supports more than $500m in annual revenues for
our client companies throughout the Americas.


Clients are technology and service
providers that depend on the daily
performance of employees.


Recent Client Accomplishments:





Grew from $1M to $9M in 18 months
and then strategic investment by
Hewitt.




Projects oriented transactional
business transitioned into recurring
solutions provider.




Acquired add
-
on “book of business”
which added additional revenues,
clients, and team members.




Received $2.56M in funding capital
raise.




Rolled up $30M of payroll service
providers to create a national provider
of “Workforce Management Solutions.”




Doubled staffing provider revenues
from $40M to $80M through

Why Polus Group:


Controls >>


Institutional level Financial Controls, Processes, and Expertise.


Spend less than an hour a week on F&A and Operational Reporting
.



Intelligence >>


Get real
-
time dashboards, budget/plan/forecast versus comparisons,
and operational dashboards
into the hands of all key managers
.



Enterprise Capabilities

>>



Have streamlined administration, enterprise tools and processes.

myPolus Platform

Management
Science

Controls &
Intelligence

Perform
Business

Wealth
Creation

Current State of Service Businesses

Does this sound like your company?


Costs structures are not in line with current business/growth plans.


Current internal resources are not able to profitability manage the current workload.


Financials provide lagging indicators
(
Limited insights into forecasts, profitability,
pricing).


Economic State of the Union
for Service Businesses:


×

Erosion of the middle class
and small business with
capital assistance only for
“Asset heavy firms”, big
corporations and big
government.


×

Talent flock to big business
and big government.


×

Customers have changed
spending habits.


×

Rising costs of doing
business.




Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Your

Company

Before Management Science

With Management Science

Controls

People dependant.

Process alert

notifications notify people to take
action based on variances, triggers,
benchmarks.

Intelligence

Completed by C
-
level

executives via
networking on an ad
-
hoc basis.

Routine intelligence guides pricing, forecasts,
spending.

Financials

Completed the following month and
provide

summary outline of financial
position.

Financials are tied to operational measures and

provide leading indicators to employees.


Billing/Invoicing

Done ad
-
hoc

on a daily basis by an
employee part
-
time.

Automated

invoicing and cash collection saves
time, processing costs, reduces manual errors.

Cash Management

Done at end of month and end of period.

Cash
actuals

integrated with QuickBooks in real
-
time.

Labor Cost
Management

Excel

and/or manual review done after
the period.

Labor Matching applied every two weeks to
match costs and profits.

Management Science

Controls

Cash

Client

Contracts

Key Performance Indicators


F&A Services

AP

AR

Billing/Invoicing


Payroll

Time and Expense

Spend Management

GL

Cash

Management


Intelligence


Benefits of Management Science


By going to the cloud, get access to technology and tools that provide greater controls, better
visibility and intelligence, while reducing transaction, administration and processing costs.



Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Jly 08
Aug 08
Sep 08
Oct 08
Nov 08
Dec 08
Jan 09
Feb 09
Mar 09
Apr 09
May 09
Jun-09
TTM
Beginning RR MRR
189,700


189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


4,000


2,600


2,800


2,800


4,250


(150)


(3,000)


(2,500)


(500)


3,980


2,450


(2,800)


3,983


500


(7,000)


4,500


3,250


(3,000)


(3,250)


(3,500)


(1,000)


601


3,000


(600)


4,656


1,928


(1,000)


5,500


3,000


(4,000)


(4,000)


(1,300)


(1,500)


(1,850)


(1,000)


(2,400)


500


(1,750)


4,500


(1,500)


(2,000)


2,000


(3,978)


(1,500)


(10,000)


700


(5,600)


(6,000)


(1,000)


(2,107)


(3,750)


(275)


(2,250)


(2,000)


(6,000)


(250)


Ending RR MRR
189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


154,268


Razor
Energy Alloys (PT)
Opal Divine
Luxury Leather
Warren Alloy
Avery Ranch
Marker Group
Colibrys
Centerline (Price)
First Surgical
Condon
Pinnacle
Pentagrp (PT)
Lange (Price)
Fuddruckers
Texas Systems
K and S
General Plastics
WISco
O Rourke
Legacy (Price)
Waterloo (Price)
Wells Branch
Lange (price)
Salv. Sale (PT)
PCCA (PT)
BPZ
Audobon
Abox
Aztec
Razor
Mambo (Price)
Latrelle's (Price)
Internet America (price)
Kem Tron (price)
Lupe Tortilla
O'Rourke (Price)
Hand
Erwin
Gulf Atlantic
Willes
Mustang
Pentagroup (elim Pass through)
CTI
Fuddruckers
Weinstein (Price)
Energy Alloys
Wisenbecker
RHJ
Salvage Sale (Price)
Warren Alloy
2H (price)
(Price)
MESA
Prestonwood
PCCA (price)
Tex-Trude (price)
MRR RR Beginning Balance
189,700


189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


189,700


Adds
12,639


6,228


2,800


12,800


15,000


-


-


-


2,000


4,581


5,450


-


61,498


Drops
(12,400)


(2,250)


(19,970)


-


(6,000)


(15,650)


(6,250)


(14,107)


(2,800)


(1,500)


(9,828)


(6,175)


(96,930)


Net Change
239


3,978


(17,170)


12,800


9,000


(15,650)


(6,250)


(14,107)


(800)


3,081


(4,378)


(6,175)


(35,432)


MRR RR Ending Balance
189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


154,268


154,268


Average MRR
3,064


3,179


3,101


3,159


3,152


3,100


3,099


3,067


2,995


2,943


2,815


2,805


Average Add
4,000


-


2,800


4,267


3,750


-


-


-


2,000


3,980


2,725


-


Average Drop
(2,400)


(2,250)


(3,470)


-


(6,000)


(2,375)


(3,125)


(3,000)


(200)


n/a
(3,750)


(2,150)


Customer Count Beg Bal
62


62


61


57


60


63


59


57


53


54


56


57


62


Adds
1


-


1


3


4


-


-


-


1


2


2


-


14


Drops
(1)


(1)


(5)


-


(1)


(4)


(2)


(4)


-


-


(1)


(2)


(21)


Net Change
-


(1)


(4)


3


3


(4)


(2)


(4)


1


2


1


(2)


(7)


Customer Count End Bal
62


61


57


60


63


59


57


53


54


56


57


55


55


Intelligence

Dashboards & Routine Reports:


Cash Management, Cash Flow Management


Client Contracts, Client Invoicing


Variances


Expense > $500 not in the forecast


Payroll change > or < 20% change


Client Invoicing Material Changes


Cash Balance below Payroll + Fixed Charges Amount


Spend Analysis




Budget (plan and forecast) to Actual Comparison


Budget Ratios


Operational KPI T3M and Comparison Benchmarks


Revenue Forecast, Waterfall Forecast


Personnel KPIs


Personnel
Payroll Reporting Summary


per payroll transaction


Client Lifecycle Management


Labor Matching, Job Costing, Profitability





Rising Costs of Doing Business


Rising Costs of Processing:


Average cost of $15 per invoice done manually.


Almost all of accounting can be done by
technology that did not exist 10 years ago.


Time spent processing transactions must be
reduced!



Rising Complexities:


Contingent workers make up a third of the
workforce.


Profitability depends on the success of client, job
or project specific teams.


Variances and changes in cash, contracts, and
margins must be managed in real
-
time!


Companies will spend less time processing and more time on the core business.


Demand for real
-
time financial reports as well as non
-
financial reports and intelligence.


World
-
class companies are able to close within one day.


Controls and financial reporting reduce risk, cost overruns/rework/errors/theft and variances.


Paperless Bill Management Starts Here…


Store documents, process invoices and pay bills online!


You and your staff get a simple web
-
based interface for

submitting bills and collaborating with our accounting firm…


We Manage Your Documents

Review Bills and Classify Expenses

Securely Pay Online


Simplify document handling


Reduce data entry


Enforce controls and audit
-
ability


Streamline end
-
to
-
end bill workflow


Pay online with advanced fraud controls


Eliminate check printing and mailing


Simplify vendor management


Synchronize with QuickBooks or Intacct

In short,
myPolus
automates the A/P and bill management process, resulting in faster more accurate
processing that frees you and your staff to focus on your core business.

myPolus: Business
-
class Online Bill Payment


Easily digitize bills and
contracts


Initiate approval workflows


Anytime remote access


UNLIMITED data storage of
bills and other financial
documents


Audit trail and role
-
based
financial controls




Quick and easy scheduling


of bill payment



No need to print, stuff, and


mail checks


No need to store check stock



Automatic retention of


cleared check images



Enterprise
-
class fraud


protection



No bank client account info



Positive Pay


myPolus:
Business
-
class Online Bill Payment


Eliminates duplicate entry


Maintains consistency


Enables sophisticated expense and cash
management


Does not impact other accounting activities



One
-
click, 2
-
way
synch



Instantly access
digital images of
financial documents



Google
-
like search for
documents based on
keywords or dollar
amounts



Real
-
time calendar
view for cash flow
management



myPolus:
Business
-
class Online Bill Payment

Bill Management and Cash Flow


Scan your invoices
and other financial
documents. Then
email or fax them to
your secure online
myPolus “inbox”


Up
-
to
-
date to
-
do list


Real
-
time calendar
view (with book
balance)


Processing Documents in the Inbox


Mouse over any
document image
in your inbox to
preview the
document


Select the action
to process the
document and/or
file it in your
online filing
cabinet







Entering a Bill


Select the Vendor


myPolus’s

pre
-
populates bill
details


Enter the invoice number
and amount


Split the bill to different GL
accounts if necessary


Bills are automatically
routed to the first approver if
approval workflow is
selected




Review and Approve a Bill



2. Review the bill image, bill details
and notes to approve the bill


3. Enter notes or any changes when
approving


1. From you email notification,
access the
myPolus
account to
review the bill


Schedule Bills for Payment


Select bills to be paid
and the payment
method


Bills will be paid on
the scheduled
process date


When paying using
the Pay Online
method, myPolus
debits the payment
amounts from your
payment account and
makes payments on
your behalf




Vendor Payment


Payments to vendors will be
made with checks drawn on
myPolus’s

bank account


Utilizes advanced check fraud
controls


Eliminates check printing and
mailing


Ties payment to the transaction


The check shows the invoice
to be paid and the account
number


The bottom 2/3rd of the check
voucher shows a copy of the
invoice to ensure payment is
applied correctly


End
-
To
-
End Transaction View


The bill payment
information shows the
check number, check
date and check cleared
date


Once the payment is
cleared, the cleared
check image is
uploaded and
associated with the bill
and the payment
transaction


Contracts and other
documents easily
accessible




Have Visibility Using Audit Trail


The audit trail feature provides
you and our firm with detailed
information on “who” did “what”
“when”


Demonstrates clear separation of
duties in each transaction





Simple and easy to use for you and your staff


Eliminates need to learn accounting software


Automates workflow, payments and daily financial tasks


Maintains greater control over documents and bank accounts


Makes online bill payment simple and consistent


Streamlines access to financial information


Gets your information to our firm faster


Lets our firm service you remotely


Provides anytime, anywhere access


Decreases the paper madness


Dashboard Examples via online portal or SharePoint


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Dashboard report examples for Key Performance Indicators


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Jly 08
Aug 08
Sep 08
Oct 08
Nov 08
Dec 08
Jan 09
Feb 09
Mar 09
Apr 09
May 09
Jun-09
TTM
Beginning RR MRR
189,700


189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


4,000


2,600


2,800


2,800


4,250


(150)


(3,000)


(2,500)


(500)


3,980


2,450


(2,800)


3,983


500


(7,000)


4,500


3,250


(3,000)


(3,250)


(3,500)


(1,000)


601


3,000


(600)


4,656


1,928


(1,000)


5,500


3,000


(4,000)


(4,000)


(1,300)


(1,500)


(1,850)


(1,000)


(2,400)


500


(1,750)


4,500


(1,500)


(2,000)


2,000


(3,978)


(1,500)


(10,000)


700


(5,600)


(6,000)


(1,000)


(2,107)


(3,750)


(275)


(2,250)


(2,000)


(6,000)


(250)


Ending RR MRR
189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


154,268


Razor
Energy Alloys (PT)
Opal Divine
Luxury Leather
Warren Alloy
Avery Ranch
Marker Group
Colibrys
Centerline (Price)
First Surgical
Condon
Pinnacle
Pentagrp (PT)
Lange (Price)
Fuddruckers
Texas Systems
K and S
General Plastics
WISco
O Rourke
Legacy (Price)
Waterloo (Price)
Wells Branch
Lange (price)
Salv. Sale (PT)
PCCA (PT)
BPZ
Audobon
Abox
Aztec
Razor
Mambo (Price)
Latrelle's (Price)
Internet America (price)
Kem Tron (price)
Lupe Tortilla
O'Rourke (Price)
Hand
Erwin
Gulf Atlantic
Willes
Mustang
Pentagroup (elim Pass through)
CTI
Fuddruckers
Weinstein (Price)
Energy Alloys
Wisenbecker
RHJ
Salvage Sale (Price)
Warren Alloy
2H (price)
(Price)
MESA
Prestonwood
PCCA (price)
Tex-Trude (price)
MRR RR Beginning Balance
189,700


189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


189,700


Adds
12,639


6,228


2,800


12,800


15,000


-


-


-


2,000


4,581


5,450


-


61,498


Drops
(12,400)


(2,250)


(19,970)


-


(6,000)


(15,650)


(6,250)


(14,107)


(2,800)


(1,500)


(9,828)


(6,175)


(96,930)


Net Change
239


3,978


(17,170)


12,800


9,000


(15,650)


(6,250)


(14,107)


(800)


3,081


(4,378)


(6,175)


(35,432)


MRR RR Ending Balance
189,939


193,917


176,747


189,547


198,547


182,897


176,647


162,540


161,740


164,821


160,443


154,268


154,268


Average MRR
3,064


3,179


3,101


3,159


3,152


3,100


3,099


3,067


2,995


2,943


2,815


2,805


Average Add
4,000


-


2,800


4,267


3,750


-


-


-


2,000


3,980


2,725


-


Average Drop
(2,400)


(2,250)


(3,470)


-


(6,000)


(2,375)


(3,125)


(3,000)


(200)


n/a
(3,750)


(2,150)


Customer Count Beg Bal
62


62


61


57


60


63


59


57


53


54


56


57


62


Adds
1


-


1


3


4


-


-


-


1


2


2


-


14


Drops
(1)


(1)


(5)


-


(1)


(4)


(2)


(4)


-


-


(1)


(2)


(21)


Net Change
-


(1)


(4)


3


3


(4)


(2)


(4)


1


2


1


(2)


(7)


Customer Count End Bal
62


61


57


60


63


59


57


53


54


56


57


55


55


Dashboard Examples by Corporate Function


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

SaaS FAO Financial Management Platform


PAAS Infrastructure: SAS 70 Level II

SaaS Platform: SOA, Business Rules Engine, Event
-
Driven Workflow








Management Science Case Study

The benefits of financial and administration outsourcing.

Controls


Real
-
time KPIs

Management Science



Intelligence

Performance Targeting


This is the story

of how Management Science guided a growing company as it
expanded its scope, capabilities, and locations.

Case Study Summary of Implementing Management Science


Situation:
A staffing oriented, transactional provider with
$1M in revenues and 10 employees had the idea to
combine consultants “HR Directors” with a Shared
Services center to service businesses with “Fractional
HR” and provide all the tactical and strategic HR needs
of small to medium businesses.



Programs:
Implement Management Science to ensure
product, portfolio, channel, and client management is in
place and effective.



Outcomes:


Improved Field Level EBITDA from Break
-
even to > 30%.


Expanded into new markets.


Recognized as Best Places To Work, Houston Fast 100,
Aggie 100.


Funded by institutional investors.

Benefits of Management
Science deployed via
outsourced F&A:


Operating Performance
improvements realized after the
deployment of Management
Science include:




Role Clarity & Qualities of Right
Philosophy led to revenue per
employee increase of 40% per
employee.




Product Management focus led
to increased opportunity to close
rate.



Client Lifecycle Management led
from average 3 year client retention
to greater than 5 years.




Pricing intelligence led to 30%
price increases for targeted
industry vertical segments.


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

What are the attributes, benefits and outcomes to Management Science?


Benefits of deploying Management Science includes greater
controls

and
intelligence

which means that you can make decisions faster, based on real
-
time data.

Operational

Strategic



Establish controls.




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measures to drive accountability.



Provide dashboards for all locations, teams, and key
employees to facilitate accountability and performance.



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(client lifecycle management).



Product/Solution Management (i.e. definition, market
share, pricing intelligence).



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Balanced portfolio of revenues.



Business model improvements .



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Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Management Science Results


Management Science enables proactive refinement and improvement of the business
model, operating processes, and employee productivity.


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Management Science Results


Management Science benefits include:


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.

Management Science Results






At the end of the day…. Management Science Drives Performance.


Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.