THE REVENUE GROWTH FRAMEWORK
The Revenue Growth Framework is a governance model for Revenue Operations that ensures growth in line with the Board's goals.
Think of it as the blueprint for building and organizing a Revenue Factory
(read more about Revenue Factories).
The Framework is based on best practice for delivering quality outputs and ultimately determines the end-product of your Revenue Factory, which is Revenue.
The organization's Board will have very specific requirements for Revenue:
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Quantity (the revenue target)
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Accuracy (target market)
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Profitability
The Revenue Growth Framework is flexible enough to be adopted by any B2B Revenue function
There is no one-size-fits-all
There is no one-size-fits-all. Every organization should design their Revenue Operations with the Board's criteria for success in mind.
However, all well-designed and deployed Revenue Operations models have at their core the following:
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Tried and tested best practices
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Alignment with the strategic goals and other parts of the organization
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Defined Responsibilities and Policies that clarify how decisions are made
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Documented Processes and Procedures that explain how interrelated parts work together
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A Plan-Do-Check-Act cycle to facilitate continuous improvement
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Accurate and relevant Data
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A Risk Management approach
Revenue Operations models:
Unstructured vs Structured
UNSTRUCTURED
(implicit or loosely defined)
STRUCTURED
(explicitly defined)
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Difficult to scale. Costs outpace Revenue
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Performance is inconsistent
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Data is unavailable or unreliable making improvements and optimization difficult
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Highly flexible, change is easy (though, no one may notice the results)
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Efficient deployment of capital makes scaling possible
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Performance is consistent
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Reliable data allows cycle of continuous improvement and optimization
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Change done formally, and requires change management
Every Organization has a Revenue Operations model, whether they know it or not
Signs your Revenue Operations model might not be up to the task
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Lack of visibility of the pipeline
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Missed last year’s target
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Lacking in confidence of hitting this year’s target
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Costs scaling beyond budget
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Struggling to use data to diagnose performance issues
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Poor revenue forecasting
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High salesperson turnover
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Poor/unreliable sales data (funnel)
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Inconsistent onboarding (worse across offices)
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Inconsistent customer experience
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Inconsistent ramping of new ICs
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RevOps behind the curve
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Low or zero return on investment in new rev tech
Escalante Sales focuses on the areas that deliver Continuous Revenue Improvement
At the heart of a Revenue System that is built for continuous improvement and optimization is a 4-stage cycle of Planning-Operating-Reviewing-Improving, itself based on the Plan-Do-Check-Act (PDCA) approach. This cycle is adopted globally as the standard for continuous improvement, optimization and minimizing risk.
We offer tailored advice and solutions to help teams design, implement and refine these areas in the their Revenue System.
The secret to scalable revenue is a 4-stage cycle
REVENUE PLANNING
OPERATING
REVIEWING
IMPROVING