Wed, 12 April 2017
Joining us for today’s show is Mark Logan, a Chief Executive Officer who knows a thing or two about increasing enterprise value. Today’s topic is developing corporate strategy objectives. Specifically we focus on how to maximize enterprise value by selecting the right growth strategies. Mark and I leveraged the SBI annual workbook to guide our conversation. To follow along, flip to the objectives phase on pages 54 – 59 of the workbook.
Mark is uniquely qualified to speak on this topic of corporate strategy objectives. As the CEO of WealthEngine, Mark has spent his entire career leading growth companies in the software and SaaS technology companies. His experience from companies like JD Edwards, Sybase, PeopleSoft, and the last few years with WealthEngine.
Listen as Mark demonstrates how to create clarity throughout the entire company by getting everyone laser-focused on the real drivers of revenue growth. This show is a must watch for executives of technology companies with high growth goals. Those executives from outside SaaS-based companies can borrow emerging best practices from SaaS leaders like Mark to leap-frog your competition.
Why this topic today? Organizations that have too many objectives and priorities really don’t have any at all, they risk accomplishing nothing of significance. A CEO’s strategy often does not get executed because the sales, marketing, and product leaders, are in their silos pursuing what they feel is important. This causes strategic misalignment, and often results in subpar revenue growth.
In the first part of the program, Mark provides an overview of his business and the approach to serving two very different markets. We discuss the faced by serving two distinct markets and how Mark guides his team to succeed on both.
Every sales leader who want to become a CEO someday needs to pay close attention to Mark’s comments about how to grow enterprise value of the company. Every board wants their company to be worth more tomorrow than it is today. As a sales leader, you have a revenue objective, but not all revenue is created equally. Revenue for certain product categories may create more value for the shareholders than others, and there might be certain products that are more strategic for other reasons that just top-line growth revenue. Understanding how to create enterprise value places you on a path to become a Chief Executive Officer.
Not all revenue is created equal. Listen as Mark and I discuss the different types of revenue growth strategies. There are three types of revenue growth. Starting with market expansion, this is where high waters are raising all ships and all companies in the market are growing. The second type of revenue growth is market exposure. In this case of WealthEngine, Mark was in the non-profit world and moved into the commercial world where he you exposed his company to a new exploding market. The third type is market share performance, a market is not expanding, but you are in the market because you can take share away from my competitors in that space. Listen as Mark and I discuss the growth strategies in a use-case that you can think through for your business.
Mark and I discuss how he guided his team to go after two distinct markets in non-profit and corporate. For the CEO audience, when you make a move in your strategy, you need to make sure that you’re thinking through the go to market implications of that move. Mark deployed a team of specialists, and aligned his functional sales organization with his corporate strategy. When making a corporate strategy shift, make sure to carry that argument all the way through to its logical conclusion, and think through all the different functions all the way to the end user.
Sales and Marketing leaders faced with a major corporate strategy shift, such as Mark’s case where they went from the non-profit world to the consumer world, realize that your whole playbook now needs to change. It’s an exciting change, but it still needs to change. A marketing leader for example, the way that you market to non-profits versus the way to market to corporate prospects is a diametrically opposed to the marketing strategy. Listen to the podcast of my interview with Mark as a use case to make sure that you’re staying in alignment, and constantly refreshing your strategic playbooks.