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Excellent summary. I can’t imagine running a business any other way now.
Monique Verduzco, MBA, CMAS, PMP
Senior Vice President, Strategy at Arrowhead Engineered Products
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Learn how to
3X Equity in 3 Years
Profitable Growth Operating System!
Profitable Growth Operating System (PGOS), a proven set of simple tools and processes to help Middle-Market companies 3X Equity In 3 Years!
The Course is Currently Closed. Please signup below to get on the waiting list.
Why You Need Profitable Growth Operating System
PGOS is for all senior-level executives, established, rising, or aspiring, who want to lead their organization in strategic growth. PGOS was born in the intensely growth-focused environment of middle-market companies held by private equity, but it applies to virtually any business intent on improving and growing.
What Type of Companies get the most out of PGOS?
Primarily Middle Market Companies that plan to sell within the 3 to 5 years.
The “Middle Market” encompasses American businesses with annual revenues ranging from $10 million to $2 billion, depending on the industry in which they operate. Such firms typically have between 100 and 5,000 employees. There are over 200,000 such firms in the United States, most of them privately owned or closely held. The combined total of their annual revenues is more than $10 trillion. They are responsible for some 48 million jobs, and they comprise about one-third of the annual $30 trillion in U.S. private-sector gross receipts. Middle market is a powerhouse for the U.S. economy. Yet many of these companies are little known to the general public. PGOS will help them break through with a proven process to double the company’s sales in three to five years.
Step 01
Pre-Diligence:
Takes you through the CIM/CIP Confidential Information Memorandum or Presentation) to Pre-LOI (Letter of Interest) filters to determine if there Yes/No fit for you.
Step 02
Pre-Close:
You made the decision to attend the management presentation. This will help you understand where to focus during diligence. You should be able to get rough estimates on potential $$ with the Quads and key ratios during this step. The opportunity map is the key deliverable.
Step 03
Post Close:
You now own it. The clock is ticking, time to get to work. You will learn the how to get the team aligned with 100-day plan, 80/20 kick-off to zero-up the revenue and the strategy management process. You will use the stub year to pick up momentum. Over the coming months, you will make your team into experts in the Five Management Practices.
Step 04
Let's get it Sold:
You made. It's been three years since the close. You've learned a lot and at the same time you taught the team to: Earn the Right to Grow; Focus on the Critical Few; Double Down; Flywheel, Polish, and many more. Congratulations! Savor your success. You've Earned it!
The Five Management Practices
01.
Understand the principles of life coaching and how it differs from other disciplines such as therapy or counseling.
02.
To separate the “critical few” from the “trivial many” and align everything and everyone in your business accordingly.
03.
Lean (Continuous Improvement):
To continuously improve productivity by aggressively streamlining processes and relentlessly eliminating waste.
04.
To attract, develop, and retain employees with the skills, knowledge, and mindset to drive profitable growth.
05.
To profitably grow the business through the right acquisitions and strategic partnerships at the right time.
PGOS Executive Overview
The objectives of the Executive Overview module are to explain what is 80/20 and why it is important to our business, 80/20 segmentation and simplification, the Zero-Up process and its expected impact, 80/20 enabled growth, and a brief overview of the process and timing. It is designed to give a brief overview for the Executive Leadership team. Below is a sample of what the first two chapters contain.
Training Course Modules
- Executive Introduction
The objectives of this training session are to explain what is 80/20 and why it is important to our business to executive leadership team.
- Introduction to 80/20
The objectives of this training session are to explain what 80/20 is and its importance to the entire organization.
- Training - Segment Leaders
The objectives of this training session are to explain what is 80/20 and why it is important to individual segment businesses.
- Training - Field Training (Sales)
This is the 80/20 profitable growth training module for field-based sales professionals.
- Deployment
In this training module, you will learn what 80/20 deployment looks like, the critical daily, weekly, monthly, quarterly, and annual processes involved with implementing 80 20, and how to execute each tool in the process.
- Separate Unlike Businesses
In this module we’ll walk through what it means to separate unlike businesses; why it’s important; what to look for when separating unlike businesses; and how to litmus test whether you have a good separation to drive action and results.
- Data Collection & Clearing
Use this section to highlight the main features and/or main benefits of your product.
- Quads & Quartiles
In this module we will cover Quartiles and Quads and how to manage the Quads to maximize profit, and growth through 80/20.
- Quads 2 & 3 Simplification
In this module we will cover 80/20 Quads 2 and 3 Simplification. Some of the material was previously covered in other modules, but we find it helpful to review some areas as we dive deeper into the tools of 80/20.
- Quad 4 Workshop
Welcome to the Quad 4 Workshop training module. In this video, we’ll walk through what the quad 4 workshop is, and why it’s important, the critical inputs, and outputs of this event, and example deliverable.
- Earn the Right to Grow Ratio
In this module, you’ll learn what is the Earn the Right to Grow (ERTG) ratio and why it is important, how the key ratio fits within the 80/20 process and the applications of the ERTG ratio as we diagnose and action a business.
- GTM Aligned to Quads
In this training module, you will learn how aligning your go to market strategy with 80/20 quads. How 80's A account coverage differs from 20's B account coverage.
- Value Streams Aligned to Quad 1
In this module we’ll walk through what a value stream is, how it fits within 80/20, what activities and metrics you can use to embed 80/20 within the value stream, and an example.
- Customer Scorecard
In this module you will learn what customers’ scorecards are and why they are important, plus how to implement a customer scorecard process.
- Target Selling
This training module is about Quad 1 Key Account Management and Target Selling.
- Trade Focus
Following simplification actions, it is now time to drive 80 20 deeper in the organization by pivoting to growth by focusing on a few individuals and opportunities that can have outsized impact on Quad 1 growth.
- Overserve
The objectives of this training are to define overserve, provide details with examples and things to consider by function and then discuss aligning service levels by Quad.
- First 100 Days
The object of this module is to create the plan for first 100 days of when you have control of the company. It is a mini version of the annual SMP process.
- Strategy Management Process (SMP)
The Strategy Management Process (SMP) is a structured planning process designed to create long-term plans to achieve profitable growth.
- X Matrix
The objectives of this training are to define the X Matrix, step through the X Matrix, Cover alignment steps such as Catch Ball and Charter Development, then review the different X matrix levels that may be found in an organization.
- Targets To Improve (TTI)
During this training session you will learn what TTI’s are and why they are important. How the organization can deploy TTI’s through the use of an X Matrix and resourcing, and how to respond and take-action when a TTI is trending below target.
What Makes Us Different
Time-tested in real-world global companies across a variety of markets, channels and products. PGOS guides leaders to find and focus on their most profitable customers and products—the critical few, not the trivial many.
Applying PGOS fosters a common-cause business culture, creating value for all stakeholders: customers, employees, suppliers, and shareholders. It will guide initiatives that increase the productivity of assets, grow profits, and improve the quality of decision-making at every level of your business.
The CEO must be dedicated to profitability growing their business as fast as practical. The key to winning is to get the highest Multiple on Invested cash as quickly as possible. This will maximize the return on invested equity.
The key to achieving the highest Multiple on Invested Cash (MOIC) is to focus on the critical few. PGOS delivers a clear roadmap to 3x Equity in 3 years. The CEO must provide the focus and keep everyone on pace.
This is the team that runs the company. They must be singularly focused on following the plan to 3X the Equity in 3 years. The higher the MOIC, the more money that everyone makes.
PGOS delivers the tools and the roadmap. The operators learn the process, execute the plan, and stay on schedule. This team delivers the results that matter!
This team must know the processes and train the folks who have to do the work. They are the pacesetters and trainers for the company.
PGOS has all the tools the team needs to win.
This course will teach the Program the tools and how to deploy them across the company. The Program Managers must keep the team on schedule and make sure they follow the process.
“
I remember reading about the 80/20 principle for the first time. When I ran the numbers on my business, it was pretty apparent. To no surprise, those 20% of our clients stepped up and kept us alive during the pandemic. I have no other choice than to put 80% of my effort towards them!
I also took some advice you gave me and put it to good use! Would love to chat about it sometime! Hope you’re doing well ????????
Nithanial Decker
Owner
“
Wrote my master's thesis on the Pareto theory and how we can apply it as leaders to drive lasting culture and productivity in teams. I’m so excited to see this come to life at AEP!
Megan Johnson-Newberry
Passionate people focused leader
Based on my 30 years of real-word experience, I created the Profitable Growth Operating System® (PGOS®), a proven set of simple tools and processes to help Middle-Market companies 3X their equity in 3 years!
Get started now!
Are you Ready to 3X your Equity?
The Course is Currently Closed. Please fill out the form below to subscribe to the waiting list.
Frequently asked questions
The courses are going through some final revisions to make them suitable for online delivery. We expect to have them posted shortly. Make sure you get on the waitlist to be the first to know!
Well, I have not used it in every type of company out there. But so far, it has produced superior results in all that I have worked on, this includes industrial manufacturing and distribution; consumer products; commodity products; products sold through two- distribution channels, online and in-person; products sold globally; and so on. I guess the point is I think it will work everywhere. I'll keep believing this until proven otherwise.
I find PGOS works well in with Middle Market companies. They are typically big enough to have the resources to implement the model, but not so big that they have long since pass the ability to pivot to growth mindset. The middle market is defined as $10M to $2B I think our sweet spot is companies that $100M to $2B in size.
Certainly. Depending on what you are looking to accomplish, I can either help or provide a recommendation who is better suited to your situation. Reach out to me through my Contact Form and I will get back to you.
