Northstar Operational Revenue Model™ (NORM)

Build your roadmap to revenue growth

What is NORM?

The Northstar Operational Revenue Model™ is a proprietary system and methodology for
achieving predictable, scalable, and profitable revenue growth.


It helps you assess, plan, and execute ways to generate revenue profitably.


The system guides you in:


Aligning your organization for growth


Raising capital


Performing due diligence


Deploying sales and marketing resources

Who Benefits?

Align your business for growth

NORM shows you how to synchronize 8 business functions to support revenue growth.


NORM models your entire business.
Then it illuminates opportunities for
better alignment across all 8 domains

Lack of cross-functional alignment is often one of the biggest
constraints to revenue growth.

If you don’t work toward good alignment, you risk optimizing only a few parts of
your operation. Your revenue growth could stall if you neglect a problem in a
business function you’ve overlooked.

With NORM, you follow 4 steps:

1. Assess your operations

NORM provides an exhaustive quantitative assessment. It measures 8 key operational functions and their ability to contribute to business growth:


Market Research
Product Management
Corporate Strategy
Marketing

Sales
Professional Services
Customer Success
Operations


It then analyzes these business functions in smaller components:

- 130 disciplines

- Over 1,000 elements

- Over 10,000 processes.

The system measures each of 10,000 processes against a capability maturity model. It scores each on a scale of 1 to 5:

- It gives 1 point for an ad hoc process.

- It gives 5 points for an optimized, established process.

2. Consider your stage of growth

Because your challenges change as your organization grows, you must determine where you are now. And you must prepare your organization for when you expect to be in your next phase.

Northstar 8 has identified 5 critical transition points in the growth of your firm. We highlight the essential focus and key issues as you approach each transition point.


Startup firms focus on gaining traction. That means you get your first few clients and build repeatable revenue quickly.

Firms in the High Growth stage focus on scaling up. They must put processes and systems in place to hire, onboard, and develop talent at scale. They must maintain the quality of their customer experience as they grow fast.

Firms in the Industry Leading phase focus on innovation. Their big risk is stagnation.

3. Analyze the gap between your current and desired states

To understand your challenges, we benchmark your assessment scores against those of similar companies at your stage of growth.

We also consider your growth goals. Then we measure the gap between your goals and your current state.

The gap shows you what must change to achieve your goals.

4. Build your investment model and design your roadmap

Next, using your data, we build comprehensive financial model. It shows exactly where you need to invest your time, money, and people.

The goal of your investment model is to close the gap between your current and desired states. It tells you the sequence of investments you must plan to close the gap.

 

What you get

Depending on the size and complexity of your organization, Your roadmap for NORM includes these deliverables:

  • A quantitative assessment

    Your assessment can cover all or parts of these 8 key business functions:


    - Market Research
    - Product Management
    - Corporate Strategy
    - Marketing
    - Sales
    - Professional Services
    - Customer Success
    - Operations


  • A metric-driven model for scalable growth

    The model indicates and substantiates the financial decisions you must make to grow your firm. It provides specific investment recommendations.

    For each recommended investment, you see projected cash flows, expected return on investment (or ROI), and other key financial information.

    Use of the model removes opinion and potential bias from your decision process.

    Your model is dynamic. It changes as you update data for your business. Its recommendations are always appropriate for your stage of growth.

Together, these deliverables provide a structured, consistent way to constantly reassess your progress against your goals. We teach you how to adjust and adapt as you go.

It’s not a static plan.
You gain a new way of operating.

A quantitative assessment

 
 
 
 

A metric-driven model for
scalable growth

Why it matters

Every business needs a revenue model and a sales strategy that’s appropriate for its current stage of growth.

With the wrong strategy in place, you face three challenges:

  • Your revenue growth could stall.
  • You may invest in the wrong ways to scale your sales and marketing efforts.
  • Your future growth may require more time and investment than your business can afford.

The key is to do two things well:

  • Choose the right revenue model for your current situation.
  • Anticipate the next stage of your company’s growth and start moving in the right direction at the right time.

That’s the value of the Northstar Operational Revenue Model™ (or NORM).



"With the wrong strategy, your firm's growth will take more time and more investment."