A challenge to management is where to focus resources: in which business areas, on which customer target markets, on which product lines, in which region, which salesperson on which accounts, etc. Often knowledge about the company's as-is situation is blurred by the amount of information available. Furthermore, the solving of day to day issues distracts attention from the handling the big picture.
One method is to use sophisticated business intelligence systems with input from the company's IT-based systems. Often such solutions are hampered by the cost of integration and the time taken to obtain useful results.
It is our experience that it is rewarding to perform a segmentation of the company's income streams onto a suite of portfolios adapted to the need and structure of the company:
|Account managers||CCO and sales managers|
|Customers||CCO and salespersons|
|Customer target markets||Marketing and sales|
|Product lines||CCO/CTO and salespersons|
|Regions||Marketing and sales|
|Sales opportunities||CCO, sales managers and salespersons|
The income stream comes from sales opportunities inclusive existing customers and projects.
Each opportunity should be assessed by its attractiveness to the company by answering the following fundamental questions:
The method can be used to benchmark attractiveness of what's in the sales pipeline e.g. division by division, region by region, product line by product line, account manager by account manager, etc. or combinations of these.
Freedom2Act helps companies to use their resources more eficiently by targeting the most valuable and profitable sales opportunities and portfolio segments.
The easy-to-use web-based Sales Portfolio Management tool helps to quickly establish a snapshot of the company's "as-is" situation. The tool turns efficiently and systematically the knowledge of the organization about its customer base into valuable and easy to interprete information. Informative graphics serves as a vehicle for proactive rather than reactive management decisions. Decisions, which are made leveraging the organization's collective knowledge and not just that of a few.
Portfolio of four business units.
Each pie represents a sales opportunity. The size of a circle equals the total purchases of similar products and services by the customers anayzed.
"Portfolio" of five salespersons.
Each sales opportunity is presented by a rectangle. The height of a sales opportunity is determined by the contract value and the color by its attractiveness.