Toolkit
Below is a few examples of our key value creation tools:
The Growth Formula
In its simplest form, all growth can be boiled down to two factors: 1. frequency, defined as the number of opportunities you are having in the market i.e. the volume of sales efforts and, 2. conversion, defined by the rate of which your sales efforts convert into sales. By tuning these factors, growth can be achieved using this simple formula: Growth = Frequence x Conversion.
Growth Efficiency Ratio
The Growth Efficiency Ratio is a ratio between Gross Profit (GP) and Cost of Execution (CoE). The calculation expresses the ratio between GP generated against the cost it required to execute, i.e. to complete a full cycle sale. It can be used to determine the efficiency of sales growth strategies and investments into growth. It can also be used to determine how to redirect CoE for better GP. To measure GP/CoE from a CTM perspective, clarity in terms of # opportunities and capabilities is important.
The BCSA Model
BCSA stands for (B) Better, (C) Cheaper, (Simpler) and (A) Available, and can also be referred to as the technology adoption model. The BCSA model is an analytical tool that can determine what customers your product offering has the highest natural relevance for and thus which customers you should target to achieve hypergrowth in the most capital efficient manner.
Hypothesis Based Growth Scaling
Contrary to de-risking in traditional businesses, de-risking for hypergrowth is a complex matter, even if a company’s offering is true BCSA. The process of de-risking can be divided into three steps, with the final goal being a hyperreplicable go to market or product. NAP divde de-risking into three phases, the second of which is Hypothesis Based Growth Scaling, where relevant data is used to make viable hypothesis that test “most-likely” scenarios using limited investments.
Business Trajectory Management
Business Trajectory Management (BTM) is a way to factor time into growth. The tool enables our companies with projecting gross profit from leads by analysing the historical lead time and conversion rates. By doing so, we're able to make informed decisions based on data a long time before potentially problematic events occur. The BTM model aids decision making and helps management teams determine when and where to invest in growth.
Value Peaking
Value Peaking is a strategic approach that highlights key proof points, shaping your company’s valuation trajectory. In essence, it serves as a tool to model different stages of successful growth, helping you identify when your business reaches significant high-value milestones, or "peaks" of enterprise value. Value peaks can be leveraged for capital-related activities such exit scenarios, or solidifying a company's market position.
Dominance Diamond
The Dominance Diamond is a framework that can effectively and convincingly communicate a company's dominance after it has achieved significant scale, rapid expansion or a strong market position. It focuses on identifying key KPIs that highlight the BCSA proposition and market presence across four verticals. Additionally, the model helps establish proxies that can guide the company toward other long term market objectives.