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