Optimization Methodology

Four levers to optimize any business

What do you manage? *note any conflicts/ synergies between each

Optimization with CCI's Partnership

Four levers to optimize any business

Revenue: Nearly all entrepreneurs started with revenue and continue to focus on revenue. They are the rainmaker and have a passion for the business that generated initial success. They can sell the business differentiators like no one else. This may or may not be optimizing behavior. 

Revenue: The business opportunities among the CCI network overlap. We are in a position to create connectedness, open doors and create enhanced revenue opportunities. 

Expense: Most entrepreneurs (revenue focused or not) are expense conscious. They had to watch expenses closely when they founded the business and developed extreme, expense management habits as with revenue behaviors. This may or may not be optimizing behavior. 

Human Resources: Very few entrepreneurs effectively focus on human capital. They do not hire well, fire well, or develop healthy corporate culture. As a result, they experience below optimal rates of productivity and greater inefficiencies and resource drain (loops in time, re- training, coddling, work- arounds, culture initiatives, etc. become the norm). 

Expense: While we believe expense management is an "on the ground" effort and not effectively managed from a board position, regular CCI engagement assures consistent review and accountability to facilitate proper expense management.

Human Resources: CCI delivers consultative tools, experience and perspective. Day to Day personal relationship development can skew perspective and perception. We provide objective insights and act as a sounding board and consultant on HR issues as they arise. 

Process Management: Rarely do entrepreneurs prioritize process, which ultimately optimizes all other levers. They rely on self- deceptive stories and assumptions rather than data. They communicate in concepts rather than with specific instructions. They expect employees to manage to a result when the result should be the natural product of the process followed by the employee. Process optimization is a continuous feedback loop that requires great effort.

Process Management: Process development and management is the core tenet of CCI. We run process audits within the first six months of investment to assist in highlighting actual process vs. expected/ perceived process.

Efforts and Insights Beyond the Four Levers

Theory of Constraints: Constantly and vigilantly identify business constraints and apply corporate resources in priority to the release of the biggest current optimization constraint. This effort blankets each lever with appropriate prioritization to deliver optimal sales, an optimal expense profile, optimal productivity of human resources, and optimal business processes. 

Efforts and Insights Beyond the Four Levers

Theory of Constraints: As with Human Resource issues, historic bias, being too close to the situation, or working deep in the trees will often limit the ability of management to objectively evaluate and properly identify business constraints. CCI provides strategic and, most importantly, objective insights in identifying constraints and has experience and resources to optimally release those constraints. 


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