March 2005

1. Revenue "Quality"
While the "quantity" of revenue is easily captured in a P&L, the "quality" of revenue can only be determined by deeply understanding client satisfaction. Two firms each with a $100 million revenue stream have very different "revenue quality" if in one firm that revenue is generated by 80% highly satisfied clients, while the comparable figure for the other firm is only 20%.

Understanding "Revenue Quality"
Client Satisfaction Matrix

2. Doing the Right Things — Right!
Many firms invest a lot of money/resources doing a great job of things that are not important to clients ( "Doing the Wrong Things- RIGHT"). At the same time firms may do a poor job of of things that are critically important to clients ("Doing the Right Things- Wrong"). By asking clients two simple questions, 1- rate our performance in each product/service area and 2- rate the importance of that product/service area, a business can easily see if they are optimally allocating time, money and resources against the things their clients really care about... a great way to prioritize resources and create business focus.

Understanding Resource Allocation
Resource Allocation Map

In the case above, the firm is doing a great job of their website which has low importance to clients. At the same time, the firm is doing a poor job of both reporting and compliance, which are critically important — a sub-optimal allocation of resources.

3. Product Awareness (Cross-Selling Opportunities)
If your firm offers multiple products, it is critical to understand what % of your client base is aware of your full product line-up. Low awareness levels indicate a need to educate clients and create an opportunity for cross-selling and deepening client relationships.

Understanding Awareness of Products
Product Awareness Profile