Welcome to Power HomeBiz Guides!

Home | About Us Contact Us | Site Map | Search

 
 

 

Starting a Biz
Working at Home
Financing a Biz
Growing a Biz
Managing a Biz
Marketing/Promotions
Ecommerce/Internet
Online Marketing
Business Ideas
Leadership/Mgt.

Related Articles


Things to Do Before You Leave Your Job
Before You Quit Your Day Jobs
Auctions: Is It for Your Small Business?
Going, Going, Gone: Selling at Auctions
How Home Based Entrepreneurs Can Profit from Online Auctions

Recommended Books


How to Start Your Own Business with No Money and No Risk
Start Your Own Business: The Only Start-Up Book You'll Ever Need
Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble
The Best Home Businesses for the 21st Century: The Inside Information You Need to Know to Select a Home-Based Business That's Right for You
The Perfect Store: Inside eBay
ab
 
Why Companies Leak
Three layers of causality lie underneath every revenue leak: temporal causes, cultural susceptibilities, and proximate causes. The causes are like the causes of catching a cold. The temporal causes are why this or that virus has come to one's area or why this or that virus is so potent now 

Excerpts from the book "To The Max: Revenue Maximization: Capturing The 
Opportunities Within" by Randy Browning & Sameer Kumar 
Published by PricewaterhouseCoopers March 2003

The four core strategies of revenue maximization: 

Three layers of causality lie underneath every revenue leak: temporal causes, cultural susceptibilities, and proximate causes. The causes are like the causes of catching a cold. The temporal causes are why this or that virus has come to one's area or why this or that virus is so potent now. The cultural susceptibilities are why an individual is particularly vulnerable to a virus. The proximate causes are why he caught the cold now.

Temporal Causes 

  • Frequent mergers and acquisitions as part of industry consolidation and expansion 
  • More rapid adoption of new technology 
  • Accelerated pace of product development and marketing 
  • Rapidly shifting competitive landscapes and business models

    (article continued below ...)
     

Susceptibilities 

  • Silo mentality-individuals and corporate functions not thinking outside their own task 
  • Cutting muscle-active cutting of resources necessary for revenue maximization 
  • Defensiveness-problem denied because individuals fear blame 
  • Competition from other priorities-revenue maximization seen as less "fun and sexy" than other initiatives 
  • Exceptions complex-individuals whose jobs depend on processing exceptions from major systems 
  • Control mindset-viewing revenue leakage as an audit issue, not a growth issue 
  • Culture of extremes-being too risky or too risk-averse in revenue maximization

Proximate Causes 

  • People, including simple mistakes, interpretation errors, and inability to follow rushed or complicated instructions 
  • Processes that are flawed, incomplete or impossible to follow 
  • Technology, primarily in faulty interfaces between systems preventing the complete and accurate transfer of information

 

-- Reprinted with permission 


March 11, 2003

 

ab  

Special Top Sponsor

Sponsored Links
(Advertisements: Your Link Here)