Is your focus on revenue actually costing your business?

It is no secret that companies need revenue in order to grow and succeed. However, some companies think that focusing solely on revenue-generating activity is what allows them to flourish. Simply put, this is not the case.  

According to IDC research, inefficiencies can cost your business between 20-30% of your revenue annually. If companies direct all their time to billable work or revenue-generating activities, but neglect existing process inefficiencies, you are leaving money on the table (not to mention, likely frustrating your team by subjecting them to inefficient processes). 

Consider some common examples of these inefficiencies: 

• Example 1: Your sales team is being asked to “sell, sell, sell” but in order to do so, they are navigating between tools and re-entering the same information multiple times. Their sales activity is hampered by manual and inefficient processes. 
  

• Example 2: Your delivery team is trying to solve for the customer on a project without documented internal processes for how to deliver nor clear outlines of what is “in scope” versus what is “out of scope.” They are spending a lot of time communicating the same thing multiple times or trying to search across stakeholders and people for answers that should be accessible. They are taking the “scenic root” on delivering work and spending some time focused on rabbit holes that may not be in scope for the project, taking a lot of time to deliver value. 

The list of examples could truly go on and on. If any of the above rings true, you have process inefficiencies that need to be addressed before you can truly optimize your revenue generation.  

Many leaders say, “we’re too busy to slow down and re-evaluate our process.” This is a paradox. Not addressing the root process issue is draining their revenue.  

Some companies are losing up to $1.3M annually in revenue due to inefficient processes. It is not as simple as hiring more people or automating a process. When the root issue is process inefficiency, throwing more people or technology at the solution only leads to fueling an already broken process. 

The solution? Fix and enhance your processes first. Don’t reward your team for only focusing on revenue-generating activities if there is a broken process hampering their ability to work efficiently. 

Interested in talking about how you can address process issues without interrupting your business operations? Reach out to us at processfirstconsulting.com!