Management
Issue No. 46 - April/May 2009
Internal review: what to focus on
by Christine Jankus
Have you seen the recurrent themes in business magazines of late, the ones screaming about the need to get sales right, have a succession plan, watch costs, improve productivity and profit? Magazines of late, the ones screaming about the need to get sales right, have a succession plan, watch costs, improve productivity and profit?
The current economic climate compels us to focus on core activities we do really well. Internal review can reveal cost-effective ways to maximize productivity and profit. Internal business analysis is a complex, whole-of business task. Developing a co-ordinated strategy is even harder. Even good leaders will not have all the answers. In the end, a business that’s serious about getting internal review strategy right nearly always needs external help - and not just single-area advisors. The impact of a change in one area can completely derail plans in another. Someone has to take responsibility for getting all your advisers to talk to each other and produce a co-ordinated road map.
Key areas for internal review are:
Sales – Improving sales skills improves conversion rate and a 10% improvement in sales is significant.
Customer Retention – The customer list is a most valuable asset. Consider remuneration packages to reward customer retention.
Customer Profitability – This area involves knowing the cost of each sale and knowing the client’s needs are being met. Aim for more costeffective(profitable) service deli...
