A fictional B2B software company with about 25 million euros of annual recurring revenue.
Scorecards vs the real result
Scorecards show how the decisions compare with ordinary practice (100% = ordinary practice). The real result is this year's cumulative illustrative value in EUR.
The deciders' scorecards say
107% of ordinary practice
Real result in the year
€2,556,637
Scorecards say 107% of ordinary practice; the real result is EUR 2,556,637.
Real result €2,556,637 in the year, -€11,509 after it, against €3,602,123 if every occasion had been decided best for the organisation.
71% of the best possible.
Where value was lost, and why
- Product and Engineering decided on roadmap priorities without recurring support issues: 10 times, €400,442 lost against the best option.
- Customer Success saw enough but chose for its own scorecard on renewal and expansion terms: 14 times, €345,885.
- Sales decided on deal terms and discounts without the onboarding capacity: 8 times, €146,487 lost against the best option.
- Marketing decided on lead qualification without what happened to past leads: 16 times, €108,033 lost against the best option.
- Judgement calls on renewal and expansion terms by Customer Success that missed the best option: 3 times, €31,095.
- Judgement calls on support prioritisation by Support that missed the best option: 19 times, €25,053.
What was chosen
Deal terms and discounts · Sales · Steward: puts the organisation first and follows the rules
close on standard terms ×44 · close by promising custom onboarding ×8
Lead qualification · Marketing · Entrepreneur: puts the organisation first and bends process rules when it sees value
pass on only well-qualified leads ×10 · pass on leads still being nurtured ×5 · pass on every lead to hit the volume ×11
Roadmap priorities · Product and Engineering · Entrepreneur: puts the organisation first and bends process rules when it sees value
balance new features and fixes ×10 · fix the issues customers keep reporting ×3
Support prioritisation · Support · Steward: puts the organisation first and follows the rules
diagnose each ticket properly ×19 · escalate root causes to engineering ×33
Renewal and expansion terms · Customer Success · Gamer: puts its scorecard first and uses whatever the measure allows
renew at the current price ×3 · offer every customer a renewal discount ×14 · tailor the offer to how the customer uses the product ×9
About this simulation
All amounts are illustrative euros for a fictional organisation; they show the direction and the size of a trade-off, not an estimate for any real organisation.
- Deal, renewal and roadmap sizes and every option effect are assumptions for a fictional company, not measurements.
- An overpromised onboarding shows up about ten weeks later as churn risk; lead quality about four weeks later in sales time.
- Consequences of the year's decisions that arrive after it ends are counted separately, not in the weekly chart.
In the vocabulary but not simulated yet: revenue forecast.
The deciders are synthetic: each follows its own scorecard, sees a delayed consequence only when the information carrying it reaches it, and sometimes does not choose its best option.