Category Archives: Grow

Increase value, impact, and opportunity.

How organizations evolve.

There are three to keep in mind with respect to how organizations evolve.

There Is No One Right Organization

The organization that will work is the one a group decides to make work, after much study and debate, despite its flaws. It is easy to make any organization fail. It is harder to make one work. Continue reading How organizations evolve.

How to increase the accuracy of revenue forecasts.

Revenue Forecasts asserts that a certain amount of revenue will be earned in a certain period of time with a certain probability that the actual revenue earned in the period will be within a certain tolerance of the forecast.  For example, management may forecast that there is a 90% chance of actual revenue being not more than 10% less than a forecasted amount.

Generally speaking, the percent probability of revenue from a source is assigned by management based on their judgement in light of their collective past experience with similar revenue generating opportunities in similar circumstances.

Some managers set forecasts equal Expected Value; that is, their revenue forecast equals the sum of potential revenue generating opportunities each multiplied by an assigned probability of occurring.  There are several potential problems with this approach that should be considered carefully before proceeding:

  • Summing expected values allows fractional results when there may actually be little to no chance of fractional results.  For example, an opportunity to generate revenue of $100,000 with a 50% probability of occuring would contribute $50,000 to a forecast computed as a weighted sum even though the actual result is more likely to either be $0 or $100,000. Continue reading How to increase the accuracy of revenue forecasts.

How to build a “pizza-making” business.

Chief executive officers, managing directors, executive directors, and chief administrators subscribe to intelliven.com for content, cases, and tools to help organizations they lead perform and grow to their full potential. Leaders of any organization, no matter how large or small, those who aspire to be leaders, and those who help and support leaders all find the site full of valuable content, examples, and templates to help in extraordinary, as well as every day, situations. Continue reading How to build a “pizza-making” business.