(800) 757-8377 x701 rick.mcpartlin@therevenuegame.com

How many times have you heard or read the following?

“The perfect strategy, poorly executed, will fail.  A lousy plan or strategy, well executed, is often successful.”

Those of us who like to deploy and execute love to use this line.  We want the world to leave us alone and let us just go do what we do very well.  Let us build houses, sell software, design products, run a store or whatever we are good at – let us go do it better and better.

Those of us who like to deploy don’t want to take days or weeks out of a year to review data, consider options, listen to the market, do simulations, run the numbers, or build engagement models.  We don’t believe strategies work anyway after all:

“No plan survives first contact with the enemy”, from the nineteenth-century Prussian military

Translated to the business world that means someone makes a strategy that we know is not going to work in the market so, how about letting us just go do what we are good at – that has been working for over twenty years?

Revenue Science™ tells us that – “letting me just go do what we are really good at” – is what the science calls “dumb stuff” and it increases the (already high) “Cost of Chaos” while decreasing both top and bottom line opportunities.

Today’s military knows the power and operational benefit of a strategy.  Without a strategy, no one on the deployment team knows what their True North (mission) is.  When resources are being deployed it is not possible to deploy those resources to create the great leverage necessary to achieve the purpose because no one sees a single purpose, and everyone does what is best for them – what they are good at.

This means the resources deployed are lucky to get any positive leverage. Simply said there are a bunch of people doing their own thing with no coordination or alignment.  Each may execute beautifully and still be subtracting from the overall results of every other person or unit.

Revenue Science™ tells you to first have a very specific Revenue Strategy.  Specific means to answer these 5 questions:

  1. What is our brand promise?
  2. What’s the customer “problem” that we solve that no one else solves?
  3. What niche/s do, or will we dominate?
  4. Who is our ideal customer?
  5. Which are our key offers for dominating the niche?

These questions give every member of the team a specific True North to align with.  Even as the Prussians suggest when the market changes we still have a direction and the road has white lines to stay between.  Without a Strategic True North, ANY direct can be well executed without positive leverage outcomes.

So, if execution without a specific strategy seldom leads to long-term survival how do we make those decisions required after contact with the market?

In business, there is a formula to support the best decisions to keep between the white lines and headed to True North.

Net Profit        =          (Execution X Brand)
Brand               =          (Strategy X Alignment)
Execution        =          (Structure X Leverage)

When there is contact with the market and the original strategy is being challenged new decisions need to be made to assure survival.  When this happens use the formula to make decisions.

Net Profit is your metric for both survival and success, and since Net Profit is the result of how well you Execute times the value your Brand has earned in the market, the goal is to manage Brand and Execution.

To manage Brand is to manage the experience the market has when doing or trying to do business with you.

Controlling Brand is the result of answering those five Revenue Strategy questions (which define what you want your Brand to be) and the Alignment of your organization to that Strategy (if there is no intentional alignment, everything is random – meaning the Brand is random and out of control – if there is zero strategy there can only be zero alignment).

Controlling Execution is the result of intentional Structure (the resources invested determine the structure and they should be supporting aligned deployment) and the Leverage earned by every resource invested in Structure.  Leverage can be positive or negative.  Leverage can be considered in advance of investment, measured after, or never considered.  (There is always some Structure if just the founders time.  If the Leverage from the deployed Structure is Zero or less than the investment in Structure, then Structure x Leverage is Zero or less than one).

So, if the purpose of Strategy and Execution is Net Profit and Net Profit is the result of Execution X Brand then success after contact with the market where there is no Strategy is random (the result of luck good or bad) or Zero.  When the result is random or Zero and those investments in Structure are aligned to nothing the leverage will always Zero.

Revenue Science™ tells us that “The perfect strategy, poorly executed, will fail.

A lousy plan or strategy, well executed, is often successful” is a nonsensical conversation.  Both Strategy and Execution are required elements to get positive Net Profit for more than a short-term bubble.

The absence of applying the formula:

Net Profit        =          (Execution X Brand)
Brand               =          (Strategy X Alignment)
Execution        =          (Structure X Leverage)

is to intentionally bet on luck.  If the market is hot and your offer to the market fits into the bubble, short-term survival may follow.  Most of the time there is no bubble and not applying the formula is the same as stepping up to the dice table and putting everything on the next roll – sometimes you win and most of the time you just go home.

Answer the five Revenue Science™ questions, follow the formula and you will have a very good chance to not go home with empty pockets for a very long time – if ever.


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