Potentialization: More is Better?

While More is Better when it comes to your cell phone coverage, this may not be the case when maximizing your team's potential. Bring out the best in everybody and maximize your results through potentialization.

Potentialization recognizes differences across multiple factors including market size, seasonality, tenure, and expected market growth - allowing managers to adequately forecast and incentivize. Testing two "more is better" hypotheses:

• Seasonality - March vs August: March and August both have 31 days, revenue forecasts should be equal? Result: Bar owners in ATX make twice the revenue (with a similar cost multiple) in March courtesy of SXSW!
• Market Size - NYC vs ATX: NYC hosts approximately 1,000,000 businesses, Austin 100,000 (source: US Census). Assume two teams of equal number selling payroll services, Team NYC should outsell Team ATX by 10x? Result: Team NYC sold 11K subscriptions, Team ATX 10K. While Team NYC has the nominal advantage (11K > 10K), Team ATX is awarded the prize due to the overwhelming nine-point difference in conversion (10% vs 1%).

Potentialization works across teams and industries. We are all asset constrained, limited to a budget and headcount. Implementing potentialization should generate enough small wins, which may ultimately culminate in the big prize (see: Bill Belichick and the Draft)

Finally, to my friends snowed in in Boston and throughout the northeast, a tribute to Gronk, my fellow "owski" - from dueling with Marshawn on Conan to this classic ballad.

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For more about how I can help your company, contact me at [email protected]