Benchmarks: Leveraging Data and Dashboards for Profitable Growth
Companies in every industry are focused on a single goal – profitable growth. The pursuit of profitable growth is what gets them up at 5 in the morning and keeps them going well into the night.
However, the path to profitability is not an easy climb. Every company on their growth trajectory will come face-to-face with a new array of challenges, a series of imposing decision points, and a range of emotions – both the excitements and frustrations – that come with the ongoing changes.
When we step back, we see that the biggest challenge is the knowledge gap that exists between the desire to drive profitable growth and knowing how to get there.
The good news is with proper leadership, experience and insight on your side, there is a way forward.
Growth is an Equation
One key to moving towards profitable growth is understanding that Growth is an Equation. Fortunately, the growth equation is solvable, teachable and sustainable.
So, how do you teach a company to solve the equation? The first thing we teach them is getting the right set of tools. The tools are:
Use Data – Data is the key to defining a company’s level of market penetration and identifying future opportunities.
Structure – Your organization requires a thorough review to make sure resources, structure and compensation are aligned to capture market share.
Process – How are your company resources organized to maximize revenue creation? Define, measure and track that process.
Past experience – Companies spend a lot of time trying to win new clients, but they overlook the importance of talking to current clients. What do those clients value? What do they get from competitors? These conversations are essential to helping define your approach to profitability.
Discipline – We mention this factor last, but discipline should really be mentioned at the top of the list. It’s the one factors that makes the others possible and effective.
Of course, there are also missteps to avoid – using gut feeling, ignoring market trends, underestimating the importance of data, being complacent and waiting too long to make decisions – and any of these tendencies can derail your growth.
Dashboards for Leveraging Data
We’ve talked about the Growth Equation and identifying the tools to setting a company on the path to profitability. But what tools are available for monitoring and reviewing those factors? The answer is: dashboards – those clear, consolidated and real-time technology platforms that harness data for management reporting, trend analysis and forecasting.
Effective dashboards can enhance a company’s:
- Ability to plan
- Ability to inform
- Ability to execute
- Ability to grow
Dashboards measure the factors that lead to revenue creation. They also allow you to have an entire range of conversations – management discussions, coaching interactions, sales and production department insights, and many other organizational strategy sessions.
The Path to Profitable Growth
All companies strive for profitable growth, but the path to getting there can be filled with frustrations. For effective ways to close the Knowledge Gap, see the CFO Centre’s 12-Box Framework. Click here to read more on Profit Improvement.