Achieving Targeted Growth - The Power of Cross-Functional Teams to Move The Needle
The Story
This organization had recently lost its primary revenue stream. This made a huge impact on the bottom line. We determined that our options for replacing this loss were to 1) seek new revenue streams and to 2) enhance established revenue streams. As part of this process, we targeted in on growing our secondary revenue stream.
We created a cross-functional team - a committee with representatives from different departments - to dig into this project in a strategic way. We set cross-functional goals and identified strategies for each functional area to pursue that would help move our organization as a whole towards reaching those goals. This approach was all about looking at how each puzzle piece could fit together to create a complete picture.
The [Cross-Functional] Plan
Production
The “product” we designed was actually a service. We created adult education classes that people would pay a fee to attend.
Strategies
1) Connected to the Voice of the Customer
We both sent out a general survey and had teachers talk with classes in person. We received client feedback to establish what client needs and pain points were. We also learned what the greatest strengths of the current product were in our clients’ eyes.
2) Made Evidence-Based Changes to the Product
We used the information from this market research to streamline what we were offering. The changes we made were to adapt the product to best fit client needs. Some of the changes were simple. We adjusted class times to better fit client schedules. We removed classes that were less successful. We added classes that better fit the needs of our clients. Some changes were a little more challenging. We used our identified strengths to create a signature class template so that each class attended would have the strength and feel of the brand.
Marketing
Because our product providers were largely contractors, we combined marketing efforts. The organization provided overall marketing to a global audience and we empowered our contractors with tools to market themselves.
Strategies
1) Made Evidence-Based Changes to the Marketing of the Product
We used the data we had gathered from market research (surveys, informal focus groups) to re-focus the way we communicated about our product - adult education classes. We changed class titles to align to what the clients were looking for from our brand. We re-wrote copy to make it clear what clients could expect from the class and how the product addressed their pain points.
2) Aligned Specific Products to Specific Target Markets
We got really clear on who our current target market was - what was their age range, economic status, education level, etc. We also identified one new target market that we could expand into. Then we researched what current best practice guidelines existed for connecting with these target audiences. We took a look at each product - adult education class - and aligned the content and marketing of that product to a specific target market.
Other strategies in this area included:
Targeted Marketing Campaigns to Zip Codes that Fit Our Demographic
Empowering Contractors with Marketing Kits
Coordinated Semi-Annual Promotions
Human Resources
The people who delivered our product - in this case taught adult education classes - were each private contractors.
Strategies
1) Established Quarterly Team Meetings
Perhaps a small thing, but this was one of the most impactful strategies in this plan. This strategy shifted the model from a group of individuals each doing their own thing to a cohesive team aligned with the brand delivering a consistent product to our clients. It built strong buy-in from the team and grew the contractors’ investment in the organization. It also provided a crucial line of feedback from those in direct contact with the clients to the administration of the organization.
2) Created & Implemented an Annual Review Process
While we did have a formal review process for our standard employees, we had not implemented a process like this for our contractors. We created a review process for a pilot group of contractors - those who were specifically involved with this revenue stream. This process gave us the opportunity to set expectations and set collaborative goals aligned with this growth plan. It also provided clear opportunities for intervention if necessary.
3) Got Data Driven
Until this point the contractors had run their own shows. But this often left them sinking without realizing why. This resulted in the revenue stream floundering. This group of contractors were great at creating and delivering content through classes, but this didn’t necessarily mean they had the skills to analyze and strategize towards business growth. We began running the numbers on each contractor’s individual classes and providing them with quarterly data. Then we would sit down together and talk about strategies for growth.
Finance
Our financial strategy was simple - run the numbers and evaluate progress quarterly.
Strategies
1) Ran the Numbers
For the first time, we broke out this revenue stream from other similar streams. We analyzed class attendance and income both for the revenue stream as a whole, and for each contractor. We also did an initial analysis of income and attendance to identify any trends in terms of class time, class day, and class level of difficulty.
2) Measured the Progress
We began regularly sharing this data in quarterly reports. We measured growth of attendance and income, both for the revenue stream as a whole and for each contractor. We also compared actual progress to the targets we had set. Reports were shared with the cross-functional team, and individual reports were shared with each contractor. Each participant in the process could see the impact their work was having on the end result.
The Results
Steady Growth
The result of our efforts? We saw steady growth of this revenue stream.
This cross-functional team was operational for two years. During that time, our goal was to grow the income generated from this revenue stream.
In Year 1 we grew its income by 9%.
In Year 2 , we we grew its income by 11%.
By gathering a cross-functional team and coordinating efforts towards the same goal across the organization, we were able to achieve results!
