In an earlier posting I showed one of my favorite pictures: a waterfall graph for motivating creative initiatives to increase revenues.
This translates into the levers you control:
- Product or service coverage
- Channel coverage
- Hit-rate with customers touched
- Price, and
- Market Size (although you rarely control this)
Strategic planning is all about coming up with prioritized initiatives. Execution involves clearly and repeatedly communicating that plan throughout the organization. A very powerful way to depict revenue objectives and strategy is with a waterfall chart.
Here is a simple illustration showing the expected revenue impact for these strategies in a plan. You might choose to look at each business unit this way, as well as the company as a whole. In this example, the outcomes for all initiatives relating to product/service are lumped together, as are the channel initiatives, price initiatives, etc. The same concepts could be applied to individual projects.
Also note that this example shows growth initiatives in a shrinking market — a strategy that would be growing market share.
These are easily created using standard Excel charting functions. If this might be useful to you, drop me a note and I’ll send you some tips about how to create these.