Revenue Growth Starts with a Finish Line

Whenever I'm asked to create a Win Analysis for our clients — which is a set of recommendations for achieving their revenue targets — I always start with one thing: the finish line. An effective growth strategy hinges on a well-defined, measurable goal. Yet, surprisingly, many intelligent people within organizations overlook or undervalue the importance of defining success. A question such as "How will we know if we win?" lays the foundation for aligning subsequent strategies. Then, it's the effective orchestration of these strategies that propel a company toward the high revenue growth they seek.

Setting a Finish Line

There's no shortage of excellent goal-setting frameworks and templates. I personally like the SMART goals framework, which stands for?Specific,?Measurable,?Achievable,?Relevant, and?Time-bound. The clarity and simplicity it offers make it easier to define, communicate, and measure specific outcomes. However, in my experience, companies don't consistently use SMART goals, especially when setting revenue targets. For example, “achievable” quickly becomes a gray area (IYKYK).

Therefore, when working with a client, I distill the primary goal into an "X by X" format. It could be "$1 by June" or "$1 billion by 2028". Regardless, it becomes the central pillar upon which all other strategies are built.

Why “X by X”?

I'm fond of the "X by X" approach because:

• It's straightforward, which is essential for effective communication across large teams over an extended period.
• It eliminates ambiguity, offering a clear understanding of the objective.
• It's neutral, making no assumptions about the ease or complexity of the challenge.

This neutrality is pivotal for me. At the onset of a new project, I operate under the belief that anything is attainable. I avoid being bogged down by past experiences or existing constraints. There's a time when I consider that context before providing recommendations, but it's not at this step. Instead, I embrace a "how might we" mentality. "How might we generate $1 in revenue by June?" or "How might we achieve $1 billion by 2028?"

Posing such questions to experts within an organization often yields insightful answers. These responses lay the initial path to your finish line when woven together.?