The system was developed for SaaS companies. It’s also adaptable for tech companies that sell hardware or services. The methods are appropriate for organizations at any stage of growth, from Startup through Legacy Growth phases.
Receive practical, specific guidance. Get a crystal-clear understanding of how your sales teams can achieve consistent performance. Make sure you sales team has the right profile for your current stage of growth. Implement the right metrics and processes for accurate forecasting. Focus your attention where it will yield the biggest results now.
Use a systematic approach to increase your company’s total sales capacity. Understand the role not only your Sales team, but also of 7 other business functions that affect revenue growth. Cut through the fog. See and prevent problems from developing before they hit a P&L statement. Avoid surprises.
Adopt the right plan for accelerating sales growth that has been flat or declining. Determine whether you’re selling to the right market segments. See how much you should be investing in your sales team. Decide whether you need to raise capital. Anticipate when to prepare your company for transition from one stage of growth to the next. Avoid fiscal trauma.
Individuals or venture capital and private equity firms. Apply a structured method for due diligence regarding revenue generation. Check the real health of the sales pipeline. See the best way forward for firms where you’ve already invested.
NORM puts the right performance metrics in place, appropriate for each company’s stage of growth.
|NORM models your entire business.
Then it illuminates opportunities for
better alignment across all 8 domains
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.
1. Assess your operations
NORM provides an exhaustive quantitative assessment. It measures 8 key operational functions and their ability to contribute to business growth:
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.
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.
Your assessment can cover all or parts of these 8 key business functions:
|- Market Research
- Product Management
- Corporate Strategy
- Professional Services
- Customer Success
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.
A quantitative assessment
With the wrong strategy in place, you face three challenges:
The key is to do two things well:
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."