SBI Chief Operating Officer and Forbes Business Council Member Mike Hoffman wrote a recent article for Forbes digital on how the C-suite can drive growth initiatives, translating strategy into execution. Hoffman recommends biannual benchmarking against competitors and companies that operate in a similar space. To get a strong read on the health of your business, he suggests identifying a list of competitors, leading companies in a parallel industry and partners or prospects, and capturing a list of metrics including:
- Sales and marketing spend as a percentage of revenue
- Revenue per employee
- CAC/LTV
- Rate of attrition or customer churn
- Net revenue retention (NRR) rate
- Net promoter score (NPS)
After collecting the benchmarking data, an executive leadership team self-assessment, with a standardized list of questions repeatedly asked every 6-12 months, will help capture qualitative and quantitative data needed to make decisions on the growth spend relative to growth strategy and if the company has the right model to increase valuation.
“While it can be tempting to adopt a ‘set it and forget it’ mindset,” Hoffman cautions, “growth initiatives require direct oversight from the C-suite. Identifying weaknesses, strengths and opportunities for growth can set your organization on the right path.”
Click here to read the article in Forbes and understand how to get the most out of your growth spend.
