When we released the deep growth report with our partners SBR Consulting, we spoke about long-term sustainable growth as the new paradigm for delivering value to investors and business leaders. However, it must be made clear that this type of long-term growth driven by customer-centricity and alignment across your revenue organisation does not come at the expense of short-term gains. Instead, quite the opposite.

Tightly aligned companies achieve 24% faster three-year revenue growth and 27% faster three-year profit growth, many of which see improved financial results materialising within the first year of pivoting to this approach. A great example is a B2B software company in Northern Europe who recently reported an increase revenue by 10% within the first year and a further 24% increase expected by the end of the following year.

So why don’t all leaders prioritise the necessary changes and enact change without delay? For many, it comes down to an inability to move out of the vortex of the must-do activities and move into the should-dos.

If there is a time of year when this should be happening it is now as many organisations are heading into Q4 or H2 when the trajectory of the year should be clear to see.

In fact, what we’ve observed is that most companies tend to miss the massive opportunity in front of them to drive this shift while in this exact period.

We’ve observed two camps of leaders in relation to their approach to strategic planning – one set are the minority, those who use strategy planning as a crucial compass that guides them towards growth, innovation, and competitiveness. And then the vast majority are those that simply go through the motions to set targets, determine budgets and assign territories, while doing little by way of proper diagnostic to identify the essential changes that will deliver transformational change in their business and the planning for delivering sustainable growth. This larger group are often looking for more without being prepared to step back in order to find better.

Tech companies should prioritise FY24 planning

Here are some reasons why tech companies need to move beyond the box-ticking exercise and should grasp the opportunity to do so now.

Achieving immediate impact on your bottom line
Conducting a diagnostic across your revenue organisation, identifying root cause issues and key value drivers is not just a nice-to-do exercise. It provides a roadmap to underpin your FY24 planning to drive immediate financial impact on your bottom line in the following ways:

1. Revenue Growth: By aligning sales and marketing efforts, you can capture more leads, nurture them effectively, and close deals more efficiently. This can lead to an immediate increase in revenue as your sales pipeline becomes more effective.

2. Efficient Resource Allocation: Addressing misalignment issues allows you to allocate resources more efficiently, ensuring that budgets are spent on strategies and campaigns that drive real results. This can result in cost savings and improved return on investment (ROI).

3. Reduced Customer Churn: A more coordinated approach to sales and marketing can improve customer satisfaction and retention. Lower churn rates mean more recurring revenue and a more stable revenue stream.

4. Faster Sales Cycles: When processes are streamlined and roles are well-defined, sales cycles tend to shorten. This means revenue is generated more quickly, positively impacting cash flow.

5. Increased win rates: Better alignment often leads to improved win rates, which means a higher percentage of leads convert into customers. This directly translates into increased revenue and profitability.

6. Increased referrals: Through improved customer satisfaction and process to seek and secure referrals. This directly translates to higher win rates.

Achieve sustained profitability and success in FY24
Revenue leaders can transform their strategic FY24 planning efforts from a box-ticking exercise into a dynamic and growth-oriented process. This approach not only positions the organisation for near-term revenue growth but also sets the stage for sustained profitability and success in FY24 and beyond.