In the map, the lower portions of the bars, not to scale, represent the financial results of an example
business as it's now operating. The top-most bars show the relative gain in those results if the initiative shown on the bar is fully realized.
For example, the leftmost pair of bars shows that if the business got every
customer to never buy from anyone else, for as long as they lived, financial results over the long run would rise noticeably. As we'll see in the book, achieving that is not all that hard, but it
does require leadership—particularly, the ability to inspire.
Also notice that for this business, the potential of squeezing costs out (6th bar from the left) and model management practices (2nd bar from right) have lower potential gains than the others. That's because those areas of improvement have been well worked over (which is pretty normal) so there's not as much potential improvement left.
The main point is that this business still has a great deal of unrealized
upside potential. And a mere 1% change in sales, or profit margin, can move a public company's stock.
The upside map is a way to discover what a business is really capable of creating in terms of financial results. As you can see, there are a number of upside elements, any one of which can provide a substantial boost. Most of them have far more room for improvement than most everyone recognizes, as will be made clear in the book.
As mentioned, the book is still in preparation, but if you're in a
results-challenged situation now, or just itching for better results, you're welcome to contact us using the form below and we'll provide the material and advice we can.
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