Focus on Product & Service - Scott Geller

Scott Geller of Capitis Advisors, LLC - “The CFO Perspective”

INTRODUCTION
I have 20 years of experience in the finance realm that started with the Federal Reserve Bank as a bank examiner, moved on to 7 years at a Fortune 300 insurance company, and then a 50-70 person spin-off technology firm under the Allianz umbrella of companies. I was with the spin-off from day zero all the way until the unfortunate end and I had to close down the business. I am now a financial consultant serving primarily as a fractional or part time CFO for companies that range from start ups to young and scaling to established with stable growth. I take over from the accountant as a lean cost effective option for Profits Engineering, Cash Optimization, Strategic Acceleration and Executive Partnering committed to your success. Please contact me at scott.geller@capitisadvisors.com.

PROBLEM STATEMENT/SHOW OBJECTIVE
The goal of this show is simple, while the execution is far from simple. You need to review your \product and/or service offerings and progress through a Reinvention Project to drive value of the business.

WHAT YOU NEED TO KNOW

1. Knowing what you are selling and ever did sell
   1. Perform an audit
   2. All products and/or Services
2. Determine level of and rationale for Offer Performance
3. Identify candidates for termination, replacement, upgrade, and/or new
4. Goal
   1. Assess profitability
   2. Industry growth
   3. Market share
5. 4 Types of product and services offer
   1. Problem Child: High Industry Growth & Low Market Share needs to be closely monitored for marketing efforts;
   2. Star: High Industry Growth & High Market Share now and in the near future;
   3. Cash Cow: Low Industry Growth & High Market Share shows long term preference and loyal buyers;
   4. Dog: Low Industry Growth & Low Market Share means low customer preference and a candidate for upgrade or terminate.
6. The Issues
   1. Growing Market? What is the average growth rate over the last year and compare to the product or service;
   2. Growth of Wallet. How much over the last year has the product or service increased its share of the customer's purchases - a measure of preference.

WHAT YOU NEED TO DO

1. Determine where each of your products and services are in the matrix.
   1. First Test: what is the average growth rate in your industry, your customer's industries growth rate.
   2. Second Test: how much share of the customer's budget does your offer have today, what was it a year ago, what trend would you predict.
   3. Third Test: How much is your product or service making you in profits yesterday, today, and in the future?
   4. Fourth Test: Ask why you are selling even if you are selling to determine the true value to the customer
2. Is the next move a hold, update, or removal?
   1. Problem Child - what is not performing at least at the industry average? What has been our investment to date? Invest in more marketing - are we chasing bad money with good?
   2. Star- why is it working? Is there anything we can do to extend the run? Can we learn anything to transfer to other parts of our offer?
   3. Cash Cow - what is the reason for the extended success - customer treatment or characteristics of the product or service? Given current industry projections and market share, what is the projected life cycle of the offer?
   4. Dog - what is the reason for declining success? Does this product or service need a refresh, upgrade, or is it time to terminate and replace?
3. Based on your analysis of the company's offer, what are the recommendations to the Reinvention Project for upgrades or replacements?
4. Who is involved and how?
   1. Combined effort of CFO and CRO/CSO
   2. Walk through the questions
   3. Determine options for hold, update, removal, or new
   4. Weigh positives and negatives for operations, sales, finance, R&D, and customers
   5. Make a decision, move, and reassess

PREVIOUS SHOW: 2020_11_16 - Agile Finance in Scenario Planning
NEXT SHOW: 2020_12_30 - Optimize the Business for Profitability  

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