We create growth-driven value for organizations

Value Creation Dimensions

Value creation is a function of two dimensions of business performance – your rate of growth and your rate of investment. Those represent the central axes in the Value Creation Compass.

It begins with the rate of growth – the vertical axis. What matters here is whether the growth rate is accelerating or decelerating, and how that reflects increasing economic value for the firm.

Next is the rate of investment in the business – the horizontal axis. Here we consider not only whether operational expense is increasing or decreasing, but more broadly whether the rate of investment in the business is changing, including M&A, other capital expenditures, and any below-the-line investments.

Quadrant 1

Accelerating Rate of Growth While Slowing Investment

Companies in this quadrant have commercial spend levels commensurate with peer benchmarks; however, the business is not growing at the expected rate given those investments, necessitating productivity gains.

Quadrant 2

Accelerating Rate of Growth and Investment

This is an “art of the possible” thesis for high-growth companies focused on extracting breakout growth with increased investments in commercial functions.

Quadrant 3

Converting to a More Valuable Revenue Stream and Model

Often a use case for shifting the revenue model dramatically (e.g., on-prem to SaaS conversions), these companies focus on making a step-change in their revenue model to drive future growth and enterprise value creation.

Quadrant 4

Maintaining Growth Rate While Slowing Investment

Often seen in scenarios where a public company is taken private, this quadrant describes businesses that are achieving substandard growth rates, and tightly managing investments in order to continue to deliver value even as growth rates slow.

1 Improve GTM efficiency

Refine target markets, ICP, and coverage models and/or drive commercial effectiveness improvments.

2 Increase Customer Retention

Manage against growth rate deterioration by customer churn.

3 Exercise Pricing and Packaging Leverage

Get more out of the same by aligning product and pricing to customer willingnewss-to-pay

4 Develop and Launch New Products

Bring new revenue streams to market to capture new demand and bolster existing product lines.

5 Enter and/or Expand into New Markets

Pursue new industriesm, geographies, or other customer segments, including through acquisition.

6 Redesign the GTM Model

Establish new GTM channels, roles and/or motions for new market, product and/or revenue model success

7 Evolve the Service Delivery Model to Increase Gross Profit

Reduce cost-to-serve through, e.g., new staffing approaches ot digital delivery models that capture more profit from existing revenue sources.

8 Shift Revenue Model to capture Creater ACV and CLTV

Transition o a subscription-based revenuew model or pursue additional productization.

9 Bolster Profitability of Low Margin Customers/Segmnents

Generate more revenue from and/or their service levels to create more hight-value customers.

10 Drive Revenue in Most Cost-Efficient Channels

Strategically allocate customers across a variety of channesl, including partnership and targeted GTM role re-design.

11 Reduce Acquisition Cost to Lower GTM Expense

Rethink targeting, pipeline development and conversions approaches to bring more customers in at the same cost.