A short video explaining how to achieve the best return on strategic effectiveness
This is the third video in a series inviting you to experience a few of the Predictive Scenario Builders, known as What-If Strategic Calculators ™, I use with my clients to create meaningful strategic change and sustainable profitable growth in their corporate family businesses.
These tools are proven to change the conversation and strategic focus of businesses I work with and improve all aspects of the business. You can view the first and second tools here and here.
Return on Strategic Effectiveness
As a practical business advisor and former CEO, my role is to empower my clients to notice key data and to think strategically, about how your business can attain sustainable, profitable growth in these complex, turbulent times.
A business understanding of the core elements of your business and their interconnectivity is critical.
I often start by asking my clients, “What is the Achilles heel of your business?” Always, my clients initially respond with complaints about slow sales growth, declining cash flow, or lack of talent. These answers prove to me the CEOs are not asking the right questions or looking at the right metrics as they make decisions in their business.
Because cash flow, revenue growth, and lack of a talented workforce are RESULTS...not causes. And when pressed further, the CEOs I speak with are often stunned to discover they have no idea of the causes for their dismal performance.
How can a CEO create a thriving corporation in turbulent times when they are not certain of the levers to pull in their business to right the ship?
The Return on Strategic Effectiveness Calculator
The Return on Strategic Effectiveness Calculator is an extremely powerful tool for CEOs to identify precisely where their company is struggling and where to deploy financial and intellectual assets to create the most impactful, growth-generating results.
The calculator considers each of the three determining factors of long-term sustainable profitable growth :
- The drivers of cash flow
- The components of growth
- The three components of sustainable growth (the laser sales formula)
ONLY #3 - the components of sustainable growth are causes. The rest (the cash flow and the components of growth) are effects of sustainable growth.
In this video, I will walk through the components of cash flow, growth, and sustainable growth, and give you examples of how one strategic change can impact the key metrics of your business.
You will understand the power of compounded average growth rate (CAGR) vs. average growth rate...and why using CAGR to monitor your business outcome can help you to identify hidden issues within your business.
You will learn the power of the Laser Sales Formula on cash flow and growth.
The following video and attached calculator demonstrates how each input in the Return on Strategic Effectiveness calculation can change the profitability of the business, and how the model allows for a CEO to make impactful strategic decisions with far less risk...because they are asking the exact right questions.
A business understanding of the core elements is critical in fast-moving, turbulent times. CEOs must understand how to connect the dots in their business so they can quickly identify weak areas in the business and customer relationships and beat out the competition.
Now I invite you to access the Return on Strategic Effectiveness What-If Calculator ™ by registering at this link (our LMS) and enter in the how did you find out about us field the word "rose blog". We will give you 30 days of access to the Return on Strategic Effectiveness What-If Calculator ™ course. In this course, you can follow along with the video as I explain how to use the Return on Strategic Effectiveness What-If Calculator ™ in your business.
If you wish to see the video, you can watch it below (Return on Strategic Effectiveness - ROSE The Harsh Reality of What is Really Unfolding in Your Business).