Where does our profit really come from — and what will we stop doing to grow it?
The whole portfolio and where the enterprise reinvests.
The six stages, as you lead them
Stage 1: See the economic truth
Where is value actually created, and where is it consumed?
You see the enterprise profit map by customer, product and channel, after the cost to serve each.
Output: Profit by customer, product and channel after the cost to serve them, sorted into quartiles and a value-versus-complexity quad.
Stage 2: Price and cost to serve honestly
Does each segment pay for what it consumes?
You set the enterprise posture on pricing and terms, segment by segment.
Output: The gap between price and cost to serve by segment, with pricing and terms options.
Stage 3: Concentrate on the vital few
Where will we focus, and what will we stop or change?
You and your leadership team make the portfolio focus decision, including what stops.
Output: An approved focus set, and a decision for the rest: standardize, reprice, consolidate, shift channel or responsibly exit.
Stage 4: Release capacity
What capacity does that focus free?
You see the capacity that decision releases across every function.
Output: Freed hours and spend by function, with a plan for where they go.
Stage 5: Reinvest into growth
Where does the freed capacity go?
You direct capital and talent into the vital few growth bets.
Output: A reinvestment plan aimed at growth in the vital few.
Stage 6: Compound it
How do we make this repeat?
You hold the result in your strategy and operating reviews, cycle after cycle.
Output: Owners, a review cadence and an ARC™ rhythm, so each cycle starts from a stronger base.
The Way to Wealth™ calculator
Your Current, Improvement and Dream scenarios side by side: customers, revenue, costs and profit, with action cards and an Excel model you can download and load back. Your figures stay on this device.
What goes in, what comes out
Inputs
- Revenue and margin by segment
- What drives the cost to serve
- Headcount by function
- The capital plan
Outputs
- A one-page economic truth
- An approved focus set
- A reinvestment plan
- A review calendar
Who decides
- Decides
- You decide the focus and the reinvestment.
- Recommends
- Your leadership team recommends.
- Consulted
- Your board is consulted on capital.
How you will know
Leading measures
- Share of capacity spent on the vital few
- Decisions made at cadence
Lagging measures
- Operating margin
- Revenue growth in the vital few
Bring your portfolio question to a strategic business review.
Schedule a Conversation — opens the booking calendar in a new tabThe same six stages, from another seat
- Entrepreneur / FounderHow do I scale what already works without scaling the complexity?See your path
- Private Equity / Operating PartnerWhich value-creation levers pay back inside the hold period?See your path
- Functional ExecutiveHow does my function concentrate on what our vital-few customers need?See your path
- The Leadership TeamDo we share one view of the economic truth — and one set of priorities?See your path
- Advisor / CoachHow do I guide a client through this rigorously, and repeatably?See your path
Start with a confidential conversation about what you want to achieve
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