A transformational opportunity in business thinking and business capability is here. Thinking and capability that doesn’t just improve business foresight by revealing the forces at work behind the management accounts and P&L, but one that is so fundamental that it brings a whole new perspective on how to increase business performance and view the profitability equation itself.
This perspective puts powerful new profit levers at your disposal which are not just able to generate a great deal of extra leverage, but because it is relatively untapped, and offers a major new source of competitive advantage too.
So, what is this capability? Where does this extra leverage come from that can not only provide quick wins but can substantiate such remarkable claims as adding an extra 25% to next year’s profit, margin or other KPIs?
At its heart is the idea that customers are the source of cash flow and therefore may be considered to be an organisation’s most important business asset. Recognising and managing customers as a business asset with a view to protecting and increasing the value of that asset becomes a business critical activity.
In most cases, the value of the customer asset is already large. It makes up much of the big financial gap between the true value of a business and its physical assets as they appear on the balance sheet.
That’s why improving the capability to manage and increase the value of the customer asset plays a major role in protecting and increasing the future profit, margin and other KPIs. And, because it is rooted to the source of future cash flow, provides an excellent way of translating today’s market changes into a business opportunity stream.