Strategy 4 Saturday (<4 minute read)

• Halfway Done
• Strategy facilitation | Course
• Book quotes (Forbes)
• Measure Success Podcast
• Strategy fact / Quiz
• Leading / Lagging Indicator $1M Sales Example

Halfway Done

Welcome to the 2nd half of 2023.

Are you measuring your success for the first half of the year? How close are you to reaching your destination (goals) that you set for 2023?

Did you know that the stock market (S&P 500) is up 15.9% in 2023? Did you know that the NASDAQ has gained 31.7%, its best first half in 40 years?

At the end of any quarter, or half-way point, we should be measuring our success. For most companies and organizations, this is when we measure progress on total revenue (sales), (fundraising for NFPs), and profits.

As an individual, how well are you meeting your weight goals? How close are you to running your first 5K, 10K, or marathon? How about walking 500 miles, like my oldest daughter Ashley and niece Maggie will be starting soon in Spain?

Lagging Indicators

So now that we measured our first half progress, what should we be measuring in the 2nd half of the year?

Most organizations continue to measure the lagging measure. They will continue to measure their revenue on a monthly basis. If you are an individual, you may continue to hop on the scale hoping to check your weight.

However, we do not increase our revenue by looking at our revenue numbers. Just like we don’t lose weight by hopping on the scale.

Leading Indicators

Harvard Business Review research validates that if we focus on our leading indicators, rather than our lagging indicators, we are 3x more likely to reach our goals.

From a sales perspective, we have to review, what actions do have in our control, that can have an impact on the outcome. If you have an outbound sales force, leading indicators may include the following:

Outbound calls to connect with sales leads

Product demos with prospects

New quotes generated

Close percentage

If you are walking 500 miles, a leading indicator would be the performing training walks.

If you are trying to lose weight, you should measure your calorie intake and exercise.

Let’s go back to the sales example, let’s say one sales person is trying to close $1 million worth of business in the 2nd half of the year. What would it take to get there? (See example at the end of the blog)

Strategic Facilitation | Captain Strategy Course

If you need a facilitator to stay focused on successful strategies for the rest of 2023 and beyond, email carljcox@40strategy.com. Our next available in person facilitation are already filling up this fall. Connect with us now to reserve a spot.

Good news, we have designed an 8-week, one-hour live virtual Captain Strategy Master Class. Our next course starts Monday, August 7th. The cohort is capped to 8-entrepreneurs/executives.

Imagine how one focused strategy hour, per week, can make a difference for you or your company.

Email Operations Director, Tonya Smith, admin@40strategy.com, to reserve a spot.

(And yes, we will incorporate AI/ChatGPT into the course)

Highlights of the Week

Abby’s Portland Thorns soccer team earned their way into the Sweet 16 knockout round for the first time in club history at the ECNL playoffs here in San Diego. Congrats!

We also had an awesome facilitation in San Diego with one of our new clients. More on that in the near future.

Lost at CEO | Book Quote

Senior contributor and economist Bill Conerly wrote in Forbes magazine, Businesses should not optimize everything. Here’s a piece of it…

“The business principle behind that is illustrated in a forthcoming book by Carl Cox, Lost at CEO. This business strategy book in the form of a novel (think The Goal for C-suite strategy) has a telling segment when the CEO impresses on the management team the need to grow sales—but some managers translate that goal into working more hours. One has been putting in long workweeks and doubts he, they can take more time away from the family without facing a divorce. The solution—easy to see from the outside—comes from prioritizing the activities that will make the largest impact in the available time. Other tasks are left at good enough.”

Favorite Book Picture of the Week (pictured above)

Lost at CEO picture at Odell Lake. Thanks to my brother Jim Talty!

Measure Success Podcast

This week, episode #122, CEO, entrepreneur, author Nigel Bennett, shares how he was able to let go in his business, so that he could travel the world with his family. Don’t miss this episode. Here’s the summary and audio links.

Strategy Fact of the Week:

Almost 71% of small businesses do all of their own marketing in-house. According to Forbes, the small businesses that are happiest with their marketing performance hired outside agencies to handle it for them. Thank you, Crowdspring.

Quiz of the Week:

What percentage of small businesses do not utilize content marketing?

A. 20%
B. 40%
C. 60%
D. 80%

Last week’s answer: Apple (up 36% this year), Microsoft (37%), Alphabet (39%), Amazon (44%), and current stock market darling Nvidia, which has surged 159% on AI-related excitement.

Leading | Lagging Indicator One Million Sales Example

From experience, you have learned the following:

Deal Size:

Your typical deal size is $50,000, therefore you would have to close 20 deals to sales $1 million.

$1,000,000 Sales Goal

/ $50,000 Average Deal Size

= 20 Deals

Quote History:

For every quote that you generate, you typically win 50% of them; therefore you would have to create 40 quotes.

You win 50% of quotes.

20 Deals / 50% quote win percentage = 40 Quotes

Product Demos:

Your product demo is amazing, and 50% of your product demos results in a quote.

40 quotes / 50% = 80 Product Demos

Outbound Sales Calls:

10% of your outbound sales calls, result in a product demo. 80 product demos / 10% = 800 sales calls.

Initially, this looks overwhelming, but let’s break this down into our weekly leading indicators to win $1 million in business:

800 sales calls / 26 weeks = ~31 calls per week or 6 calls per day.

80 product demos = 3 demos per week.

40 quotes = 1.5 quotes per week

20 deals = ~ 1 deal per week

This is something that can be done. Track the leading indicators weekly to meet and exceed your $1M goal.