5 Steps to Maximizing Revenue from Every Employee
Implement these 5 steps to maximize per employee revenue, maintain your costs, and increase your profit. The groundwork should take one day; execution begins immediately and continues without end.
Step 1. List all of your employees by name and job category or duties. Include every single person, including the CEO, C-suite execs and the people in all departments.
Most people are not actively selling. The goal is to ensure that all employees, across a range of functions, contributes to revenue in some identifiable way.
One-by-one, consider how each person’s job, as they currently perform it, contributes to revenue. Ask “What is it about this person’s job that contributes to revenue?” Write it down.
You will have to look beneath the surface to determine the answer in many cases. Making the time to do the hard thinking will pay off shortly.
Step 2. Assign a number to each position/job based on its proximity to the customer or client.
(1) means the person and job are extremely close to the buyer; this would be your sales team members;
(2) includes marketing, and delivery or execution directly to the client; in many cases, the CEO and other C-suite persons would be here;
(3) are customer service reps;
(4) are product/service development people; and web and IT services;
(5) is maintenance.
If you have other roles, give them numbers too.
Step 3. Imagine $100, piled in front of you in $1 bills. These represent your revenue. Spread these dollars on your table and move them into piles representing the portion of $100 that each category generates in revenue.
Before you put most of the bills into category 1, the sales category, think about this:
• What portion of the $100 came as a result of the marketing team’s efforts to attract those buyers?
• What products or services that buyers are paying for were created, innovated or improved by the development team?
• How much did the web/IT team contribute to making the products or services available and accessible?
• How many new sales are made by the customer service reps?
• And if you have a physical location, what role did maintenance and upkeep play in attracting and keeping buyers?
Once you’ve allocated the $100 across the categories, you will have a fresh perspective on how money comes in to your company today. It will clearly show that all employees contribute something.
Step 4. Ask these questions to prompt ideas about how to increase per employee revenue in the coming months and years:
• Should jobs or roles be re-thought?
• Where are synergies possible that could create exponential revenue growth?
• Do you underestimate people’s contributions? Or overestimate them? Or miss possible contributions because of outdated notions of how roles contribute?
Step 5. Using what you’ve learned from steps 1-4, write down a plan to make changes.
• Who will be trained, or promoted, moved laterally, or change jobs?
• What new policies, procedures, training, marketing, and other internal services need to be provided to maximize per employee revenue? One area that often offers huge opportunities is the customer services department. How can service become an additional value, not just a “have to”?
• What is the schedule to execute this plan? Specific dates for each step make it more likely to happen.
• Who is responsible for execution? And how will execution be measured? What benchmarks will be established? How will you keep track? How will you respond if indications are that the efforts are falling behind?
As the CEO/Owner you are the one who “owns” the revenue and profit goals. The buck stops with you. Be confident and a strong leader when you’re executing this process. It is not an HR exercise.
When you lead this process, you’re reinforcing both the company’s commitment to the goals and demonstrating appreciation for the high performers in every job or organization level without whom the company would not reach the goals.