• Troy Wendt

Introducing the Growth Engineering Framework™

Updated: Mar 4, 2019


 

A painful problem for many companies is lack of predictable growth.  Marketing is driving hard to deliver leads, and perhaps attribute efforts to pipeline.  Sales goals come from the top down, with quotas set to achieve required company revenues.  What often happens?  Bookings don't hit plan, but the corrective actions to get company revenues on track are not clear.


SYSTEMS ORIENTED SOLUTION

The Growth Engineering Framework™ models a company as an economic system spanning functional organizations to deterministically improve revenue growth.  The methodology creates linkages and enables optimization across product, marketing, operations, sales, support, and finance.  The framework represents a phased roadmap of systematic team effort guiding companies to build feedback-based analytics and business process that produces predicable revenue growth.


Company Lifecycle Phases are directly adapted from the phases of growth created by David Skok of Matrix Partners. Product/Market Fit precedes Business Model Fit, which is the trigger for Scaling the Business.  The Growth Engineering Framework employs metrics, data capture and process aligned with these known phases of startup evolution.  An early stage company can capture a small number of key metrics to optimize growth, whereas a hyper-growth company has full-funnel data segmented in many ways to enable finely tuned optimization for massive growth at scale.


The Predictive Growth System represents the various revenue impacting organizations interconnected by process flow, communication and data.  An example benefit of an end-to-end system view is that the revenue growth of future customers can be modeled and intentionally designed during initial product definition.  Data feedback loops enable predictability using statistically significant historical revenue data to set pipeline goals, and similarly pipeline funnel data to understand lead requirements.


The Growth Engineering Toolkit is a coordinated collection of tools used to build a company's unique Predictive Growth System.  

  • The Growth Model is a multi-year forward looking revenue model that links company strategy for product, pricing and customer acquisition

  • Growth Metrics are determined to measure and improve growth based on the unique attributes of company product, target customers and phase of growth

  • Growth Process design benefits are organizational alignment, efficiency and collection of the right data at the right time 

  • The Growth Dataset sources include marketing automation, CRM, financial systems and a company's purpose-built Growth Model. The growth dataset is designed to enable rapid experimentation and conversion rate improvement

  • Segmentation Analysis includes identification of addressable markets, target customer segmentation, and acquisition channel performance analysis

  • Pricing Strategy utilizes the Growth Model to analyze the projected impact of pricing changes on multi-year revenue, and includes feature bundling, product portfolio rationalization, and competitive analysis

  • Experiment Design is guided by the scientific method to improve product, lead generation, customer acquisition, retention and revenue per customer 

  • The Growth Roadmap involves the design of future revenue growth in a characterized economic system

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