What if an Operating System and a Valuation had a Love Child?

What would you get if a Business Operating System and a Business Value Calculator had a love child? [3.5 mins]

Let’s answer this in a sec, OK? Let’s start by talking about why creating this love child might be a great idea. 

BOS’s tend to share a core methodology: define goals→get senior team amped→sort out KPIs→meet-discuss-do-keep-score. Wash, rinse repeat. This is why clients get BOS Fatigue.  And BOS’s often ignore where the business is today: they consider where folks FEEL the business is, yet the best growth strategies are powered by KNOWING. Here’s the analogy: picture a map, with a big X at the destination. Now imagine navigating to X based on where you FEEL you’re starting out. Wouldn’t you be better off KNOWING?

How about Business Value Calculators? BVCs are fundamentally reporting tools. It’s like handing someone a featureless map and saying “You’re here…” and then the client can sort out where to put destination X and plan their trip… without knowing if they need to cross a river, or a desert, or a mountain range. A BVC doesn’t really explain (1) why the value is what it is, (2) whether that value is even monetizable, nor (3) how to go about growing transferable value. It’s a featureless map. 

Now to our love child. When you run a client or prospect through CLARITY™ you are delivering immediate value. Why? Because you’re defining their X destination, showing them the starting line while highlighting terrain features and making prelim journey recommendations. You are helping your client understand their capacity to grow, their M&A preparedness, and calculating a total business value. This gets eyes to open and idea bulbs to flash, triggering action. Adding the Range of Business Value chart explains concepts like today’s maximum and transferable values. Use the Equity Value Planner to define what the business must be worth tomorrow to fund their wealth plan. Moving into CLARITY’s Level 2 Deep Analysis is like drawing a more granular map. 

Now ask yourself: will this increase your client’s appreciation of your relevance and potential impact? You bet it will.

Quick aside: the Growth-Drive Launch Course is on for next week, and we are getting ready for the Growth-Drive Summit. email with interest.

Of the 50,000+ companies we've helped serve over the past decade, 62% of CEOs want to grow profits; 21% want operational freedom, and 17% are preparing to sell their business. We are committed to helping you move the needle in all three areas, and neither a BOS not a BVC will do.

BVCs are good tools - I have one such report on my desk now. But food for thought: put on your ‘client' hat and ask yourself how you would view the report. You’d find it interesting for sure. But also frustrating: you expected $$ Value, the report says $ - and that’s it. It actually leaves your client believing that they’ll have to increase revenues by whatever % they want to increase value. And we all know this is likely wrong - it’s the multiple not the multiplicand that makes a profound difference. 

This is where CLARITY is proving its mettle with your colleagues: educating clients about Growth-Driving Objectives™, getting them to say out loud that they aren't meeting some/most/all of these Objectives, and positioning you as the one who can help them take control. All in, it's like running a self-directed private equity play on the business with you as their guide. 

Let’s wrap it all up with a bow: an analysis report is good, an analysis-driven plan is better, but executing the plan is what turns it all into reality. And after delivering your killer strategic capacity analysis, Growth-Drive hands you BOS templates, guidance and an execution leadership system. Templates for strategic planning, execution sprints, the Business Flow™ scorecard, and more. It really is a tech-powered business advisory system in a box for growing profits AND value. Love child. 

You know there’s one more thing. There's a profound psychological difference between the client experience using a BVC versus CLARITY. Compare these experiences: to run a BVC the client hands you 3 years of financials and you come back with a report, voila, here you go. With Growth-Drive you sit with them, listening and sharing and guiding a conversation about their baby - in their language, in terms they understand. They hear themselves saying that things are 'partly true', 'not really' being done, or that they 'don't have data'... Would you agree that this is real-time client education, this is delivering value from the first conversation, and this is what's getting folks to agree to take the next step? 

Yep, Growth-Drive is the powerful love child with the best traits of both parents. 

We’d love to know what you think: comment below or email blog@growth-drive.com.