Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Telecom Business Advisory Initial Meeting

•Download as PPTX, PDF•
•
K
kevin_m_watson

1) The document outlines Mathews Michaels' telecom business advisory services which include reviewing key areas like revenue, costs, productivity, profitability and partnerships. 2) Mathews Michaels aims to uncover organizational strengths and opportunities for improvement through benchmarking sales, operations and finances against typical metrics. 3) Their process involves exercises to analyze current performance, identify gaps, set goals and drive tangible results through improved profitability, new revenue streams and business transformation.

1 of 21
Telecom Business Advisory Mathews Michaels 1
Revenue Cost Productivity Profitability Containment Expanding Relationships Business Health Check Mathews Michaels 2
Revenue New Sales MAC Total Revenue$ Service Contracts Other Maintenance 3
Revenue Analysis • Professional • Solution Services Labour Equipment Finance Services • Lease, Cash, • Maintenance Other • Complimentary Products • Add-ons 4
Sales Force Effectiveness • Team Structure • Success Rate of Individuals and Team • Effectiveness of Proposal • Effectiveness of Presentations • Pipeline or Funnel Analysis • Competitive Landscape • Performance Management 5
Productivity People Process Results 6
Work Force Effectiveness - Process Project Scope • Sales Agreement • Set Expectations • Customer Expectations • Communicate Plan • Initial Design • Requirements • Assign Responsibilities • Project Plan • Money Available • Manage Work Force • Charter • Agreement to Proceed Project Expectations Management 7
Work Force Effectiveness - People • Team Structure • Profitability of Work (New, Service, MAC) • Profitability of Customers • Service Penetration Rates on New Installs • Tech Productivity • Performance Management 8
Cost Containment • Review – Fixed Costs – Variable Costs – Creative Ways to Reduce Costs • Use of Variable Cost Modeling • Examination of Fixed Costs 9
Expanded Partnerships • Financial Solutions • Complimentary Products and Services – Audio Conferencing – Web Tools and Collaboration – Wireless – Professional Services • New Solutions • Expanded and Shared Services 10
Business Transformation Current State Benchmark Desired State 11
Key Performance Indicators (KPI) Chart Title 120 100 80 60 Current 40 Benchmark 20 Desired 0 Revenue Margin Profitability 12
Our Goals and Expectations • To: – uncover and validate organizational strengths – uncover and find opportunities for improvement – provide concrete means to improve Sales – provide the same for Operations and Finance – introduce new revenue streams – create tangible deliverables to drive results – help improve bottom line profitability 13
Exercise #1 • Using benchmarking let’s look at a typical $ 5M business – We have four reps that are collectively selling $ 2.5M annually – We have a blended margin of 40% – We have good CSAT ratings – We have 10% attrition in our base – We are making a 10-15% return on the bottom line • What can we learn from our mix of revenue? 14
Revenue 15
Margin 16
Gross Profit – 40% Blended Revenue – Cost of Goods Sold = $ 2M Gross Profit 17
Net Profit – 10-15% Revenue – All Costs = $500k - $750k Net Profit 18
Questions to Ask? Sales Operations • Are we netting what we expect • Are we effective in delivering our from the team and individuals? solutions on time, on budget? • Are we leveraging new sales • Do we have good CSAT Ratings? effectively to generate higher – What is our attrition rate? margin, lower cost revenues? • Does Operations and Corporate • Does everyone sell or at least generate revenue? generate revenue? – Can they? How? • Do we have the right structure? • Do we have the right partnerships • Do we have effective in place to drive our desired Performance Management in results? place? • Do we have effective Performance Management in place? 19
Questions to Ask? • What would a 2% increase in margin mean to our net profit? – $ 100K or a 20% increase to the bottom line • What would happen if we increased average sales per rep per month by $ 10K? – $ 30K bottom line • What would happen if we were able to sell service contracts, at time of sale to 50% of all new sales? – $ 100K or a 20% increase to the bottom line Once Corporate, Fixed and Other Costs are covered little if any additional costs apply to incremental revenues 20
Why Mathews Michaels? • We know the industry • We have the relevant experience • We have the necessary expertise • We understand your business • We work with your team, compliment your existing strategy • Through you, we get results 21

More Related Content

Telecom Business Advisory Initial Meeting

  • 2. Revenue Cost Productivity Profitability Containment Expanding Relationships Business Health Check Mathews Michaels 2
  • 3. Revenue New Sales MAC Total Revenue$ Service Contracts Other Maintenance 3
  • 4. Revenue Analysis • Professional • Solution Services Labour Equipment Finance Services • Lease, Cash, • Maintenance Other • Complimentary Products • Add-ons 4
  • 5. Sales Force Effectiveness • Team Structure • Success Rate of Individuals and Team • Effectiveness of Proposal • Effectiveness of Presentations • Pipeline or Funnel Analysis • Competitive Landscape • Performance Management 5
  • 6. Productivity People Process Results 6
  • 7. Work Force Effectiveness - Process Project Scope • Sales Agreement • Set Expectations • Customer Expectations • Communicate Plan • Initial Design • Requirements • Assign Responsibilities • Project Plan • Money Available • Manage Work Force • Charter • Agreement to Proceed Project Expectations Management 7
  • 8. Work Force Effectiveness - People • Team Structure • Profitability of Work (New, Service, MAC) • Profitability of Customers • Service Penetration Rates on New Installs • Tech Productivity • Performance Management 8
  • 9. Cost Containment • Review – Fixed Costs – Variable Costs – Creative Ways to Reduce Costs • Use of Variable Cost Modeling • Examination of Fixed Costs 9
  • 10. Expanded Partnerships • Financial Solutions • Complimentary Products and Services – Audio Conferencing – Web Tools and Collaboration – Wireless – Professional Services • New Solutions • Expanded and Shared Services 10
  • 11. Business Transformation Current State Benchmark Desired State 11
  • 12. Key Performance Indicators (KPI) Chart Title 120 100 80 60 Current 40 Benchmark 20 Desired 0 Revenue Margin Profitability 12
  • 13. Our Goals and Expectations • To: – uncover and validate organizational strengths – uncover and find opportunities for improvement – provide concrete means to improve Sales – provide the same for Operations and Finance – introduce new revenue streams – create tangible deliverables to drive results – help improve bottom line profitability 13
  • 14. Exercise #1 • Using benchmarking let’s look at a typical $ 5M business – We have four reps that are collectively selling $ 2.5M annually – We have a blended margin of 40% – We have good CSAT ratings – We have 10% attrition in our base – We are making a 10-15% return on the bottom line • What can we learn from our mix of revenue? 14
  • 15. Revenue 15
  • 16. Margin 16
  • 17. Gross Profit – 40% Blended Revenue – Cost of Goods Sold = $ 2M Gross Profit 17
  • 18. Net Profit – 10-15% Revenue – All Costs = $500k - $750k Net Profit 18
  • 19. Questions to Ask? Sales Operations • Are we netting what we expect • Are we effective in delivering our from the team and individuals? solutions on time, on budget? • Are we leveraging new sales • Do we have good CSAT Ratings? effectively to generate higher – What is our attrition rate? margin, lower cost revenues? • Does Operations and Corporate • Does everyone sell or at least generate revenue? generate revenue? – Can they? How? • Do we have the right structure? • Do we have the right partnerships • Do we have effective in place to drive our desired Performance Management in results? place? • Do we have effective Performance Management in place? 19
  • 20. Questions to Ask? • What would a 2% increase in margin mean to our net profit? – $ 100K or a 20% increase to the bottom line • What would happen if we increased average sales per rep per month by $ 10K? – $ 30K bottom line • What would happen if we were able to sell service contracts, at time of sale to 50% of all new sales? – $ 100K or a 20% increase to the bottom line Once Corporate, Fixed and Other Costs are covered little if any additional costs apply to incremental revenues 20
  • 21. Why Mathews Michaels? • We know the industry • We have the relevant experience • We have the necessary expertise • We understand your business • We work with your team, compliment your existing strategy • Through you, we get results 21

Editor's Notes

  1. Most Organizations focus on and excel, relative to the rest of the business in new sales. So justifiably we need to have effective sales teams to maximize our chance of success. Average top teams get $ 50K per rep or team member per month in new sales PLUS base revenues
  2. Base revenues represent the single biggest margin and opportunity. So all new customers should either produce great profits or extended opportunity to drive more profitable revenues. What percentage of new sales have extended warranty or service, Leases to increase the stickiness and up sell cross sell opportunities?
  3. New sales are key but base revenues drive profitability. How do you cross sell and up sell existing customers? What percentage of customers purchase 3 or more products and services from you? Custoers that do are 17X less likely to leave a supplier if they but 3 or more products or services from them. What is your attrition rate>
  4. In addition to COGS: commissions, corporate and operational costs all come out of gross profit. Commissions equal 8-10% of total sales or 25% of margin. Other corporate costs including Operations (not direct) is another 60-65% or more. That leaves 10-15% return on sales