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The Back Office Article

   

The Back Office

Updated: January 29th, 2009 11:00 AM GMT-05:00

Your Magic Formula for Explosive Financial Performance

Ron Roberts

Here's the magic formula for a business that spins off tons of free cash:

S * P * P = R squared©

Sales * Process * People = Results squared©

SALES times PROCESS times PEOPLE equals RESULTS squared.

The magic formula states that when you combine great Sales (S) technique with great Processes (P) throughout the company and load it up with great People (P), you will produce explosive financial Results (R).

What makes the magic formula so magical?

The rarity in which it is brought to life by contractors.

Imagine your company was the lowest cost provider, the one who owned all of the great clients, and one who was staffed by highly motivated and hard working employees.

Imagine that your company had hundreds of talented people begging to work for you. A company whose clients waited in line to get their work done because they knew you would take care of them far better than anyone else. A company whose cash flow was flush because; (a) your margins were incredibly high and (b) your backlog stayed full.

Got that picture locked in your head?

Can you see it? Can you feel it? Can you taste it?

Okay, we just described the S * P * P part. Now, let's look at the right side of the equation, the R squared part

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