Strategies for Growth in 2012: Sync CRM and Financial Management to Drive Performance. Financial ControlsRevenue Management Intelligence Real-time KPIs

Strategies for Growth in 2012:Sync CRM and Financial Management to Drive Performance.

Financial Controls Revenue Management

Intelligence Real-time KPIs

Performance Targeting SaaS F&A Platform

“Management Science reporting provides the routine visibility executives need to lead daily performance, attract capital, and outperform the competition. By synching CRM and Financial Management; cash collection and revenue growth achieves resource efficiency improvement.”

www.EphorGroup.com 2

Strategies for Growth in 2012 eBook“In this slow growth economy, there will be bifurcation between leaders and laggards; the best revenue strategies will outperform the competition, and win the war for profitability.”

Effective B2B growth strategies require capital efficient programs to reach qualified buyers.

“Feet on the street” models are legacy thinking. Multiple lead sources are required to be capital efficient. Multi-tiered distribution is key. Referrals from partners, alliances, and communities will generate the majority of

new clients.

Legacy Thinking Revenue Strategy for 2012 Outcome of New Revenue Management Practice

“Feet-on-the-Street” Direct Sales Multi-tiered Distribution Lower Cost of Client Acquisition

Outbound Marketing Inbound Marketing Lower Cost of Sales Pipeline Creation

Lead Generation Partner Generation Referral based opportunity introductions.

Outbound Telemarketing Market Research Intelligence integrated into ongoing routines.

Market to Enterprises or SMBs Market to Niche Verticals Specialization = Improved Margins.

Revenue Growth Requires Timely and Efficiency Synchronization of All Resources including connecting CRM and Financial Management

> Improve Profitability by synching CRM and Financial activities, processes and reporting.

Best Practices for 2012 and Beyond include:I. Have a lower cost of sales than your

competition.

II. Have a capital efficient pipeline generation and revenue model.

III. Utilize Technology: CRM, Social Media, & Marketing Automation

IV. Multi-tiered Sales Distribution Compensation:PRM, Agent, Alliances, Partners, Account Managers, Sales Personnel

III. A Portfolio of Sources and Mix.

IV. Management Science reporting to provide visibility and proactive actions: Pro-Activity of the 3 C’s: Cash, Clients, Contracts.

V. Asset Management ensures a lower cost of customer acquisition and higher ROI for spend.

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Questions Answered by Synching CRM and Financials

What are the most effective

strategies for revenue growth?

Do you have the right portfolio?

Are assets generating leads?

How efficient are you compared

to competitors?

How engaged are employees?

Mediocrity will ensure failure!

X• Lenders, Bankers and Investors

want comfort and visibility with the financials delivered on a routine basis.

• Executives require visibility and insights into daily performance and profitability to effectively lead.

“Synching CRM & Financials insures budgeted pro forma

forecasts are made into business realizations.”

> Lower cost of client acquisition and greater profitability by client coupled with predictable sales forecasting and budgeting because of proactive management.

Cost of $1.00 of Revenues Varies by Channel:

Revenue Waterfall Management = Greater Profits:

> How does your cost of client acquisition compare to competitors? Email us at Polus for a complimentary report for your industry sector.

Questions Answered by Synching CRM and Financials

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Benefits of Management Science reporting: Management Science helps overcome operating gaps. Managers often work in relative isolation from the market trends and leaders Managers also often lack access to key information.

Too often, financials are not providing daily operating indicators to guide day-to-day employee priorities. Management Science provides the basis for predictable, sustainable business execution and ensures that managing growth and expansion financially ties to operations.

Questions Answered by Management Science: Where to Focus to improve Cash, Revenues, & Profitability.

Whom needs help? i.e. which employees or partners are underperforming. Which clients need attention.

Where to focus resources.

A case study:Management Science Drives Performance:

Outcomes also included:Improved Revenue Per Employee by almost $10k per month employee.Increased NLTV per client 2X.

Conversion Rate from Lead to Close

Channel

Referral

• Crowded marketplace• Too much advertising• “Committee Buy”• Resource constraints• Buyers require Immediate ROI

from a Branded Leader

Partners

Direct

Marketing is Hard

Partners Matter• Reputation = Lower cost of sales• Use of best practices from both organizations

Team Management is Key

Origination• Provide expertise and service • Must be committed to client outcomes

Management Science Required for Revenue Growth

Direct

CRM

Client Management

Upsell

Operations

Alignment Upsell

NewOpportunity

from a Partner’ Client

MAPPING

Opportunity

> Download additional resources at: http://www.polusgroup.com/resources.asp

“In 2012 and beyond, wealth will be created for revenue models that outperform the competition, that are the most economically efficient, promote and excel at client satisfaction, and invest in their people and focus on strategic initiatives (i.e. customer satisfaction).”

-Garry E. Meier, Founder

http://www.polusgroup.com/resources.asp

Management Science Benefits(financial and administration outsourcing drives Management Science)

Controls Intelligence Real-time KPIs

Performance Targeting SaaS F&A Platform

“30 years ago, firms did their own payroll; while today the vast majority outsource payroll. Management Science delivers costs savings through F&A services that streamline cash collection and provide institutional level financial controls that every business needs to survive, thrive, and create wealth.” - Garry E. Meier

An Introduction to Polus Group• Polus Group, LLC is a Texas corporation owned and

managed by Ephor Group, LLC with certified PC CPAs.

– Recognized as a leader in wealth creation models, Management Science, and F&A services for technology oriented service businesses.

• Polus Group supports more than $500m in annual revenues for our client companies throughout the Americas.

Clients are technology and service providers that depend on the daily performance of employees.

Recent Client Accomplishments: • Grew from $1M to $9M in 18 months and then strategic investment by Hewitt.

• Projects oriented transactional business transitioned into recurring solutions provider.

• Acquired add-on “book of business” which added additional revenues, clients, and team members.

• Received $2.56M in funding capital raise.

• Rolled up $30M of payroll service providers to create a national provider of “Workforce Management Solutions.”

• Doubled staffing provider revenues from $40M to $80M through

Why Polus Group:• Controls >>

– Institutional level Financial Controls, Processes, and Expertise. – Spend less than an hour a week on F&A and Operational

Reporting.

• Intelligence >> – Get real-time dashboards, budget/plan/forecast versus

comparisons, and operational dashboards into the hands of all key managers.

• Enterprise Capabilities >> – Have streamlined administration, enterprise tools and

processes.

myPolus Platform Management Science

Controls & Intelligence

Perform Business

Wealth Creation

Current State of Service Businesses Does this sound like your company? • Costs structures are not in line with current business/growth plans.• Current internal resources are not able to profitability manage the current

workload. • Financials provide lagging indicators (Limited insights into forecasts,

profitability, pricing).

Economic State of the Union for Service Businesses:

× Erosion of the middle class and small business with capital assistance only for “Asset heavy firms”, big corporations and big government.

× Talent flock to big business and big government.

× Customers have changed spending habits.

× Rising costs of doing business.

Management Science enables proactive refinement and improvement of the business model, operating processes, and employee productivity.

Your Company Before Management Science With Management Science

Controls People dependant. Process alert notifications notify people to take action based on variances, triggers, benchmarks.

Intelligence Completed by C-level executives via networking on an ad-hoc basis.

Routine intelligence guides pricing, forecasts, spending.

Financials Completed the following month and provide summary outline of financial position.

Financials are tied to operational measures and provide leading indicators to employees.

Billing/Invoicing Done ad-hoc on a daily basis by an employee part-time.

Automated invoicing and cash collection saves time, processing costs, reduces manual errors.

Cash Management Done at end of month and end of period. Cash actuals integrated with QuickBooks in real-time.

Labor Cost Management

Excel and/or manual review done after the period.

Labor Matching applied every two weeks to match costs and profits.

Management Science

ControlsCash Client Contracts Key Performance Indicators

F&A Services APARBilling/Invoicing

PayrollTime and Expense Spend Management

GLCash Management

Intelligence

Benefits of Management Science By going to the cloud, get access to technology and tools that provide greater

controls, better visibility and intelligence, while reducing transaction, administration and processing costs.


Jly 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun-09 TTM

Beginning RR MRR 189,700 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443

4,000 2,600 2,800 2,800 4,250 (150) (3,000) (2,500) (500) 3,980 2,450 (2,800)

3,983 500 (7,000) 4,500 3,250 (3,000) (3,250) (3,500) (1,000) 601 3,000 (600)

4,656 1,928 (1,000) 5,500 3,000 (4,000) (4,000) (1,300) (1,500) (1,850) (1,000)

(2,400) 500 (1,750) 4,500 (1,500) (2,000) 2,000 (3,978) (1,500)

(10,000) 700 (5,600) (6,000) (1,000) (2,107) (3,750) (275)

(2,250) (2,000) (6,000) (250)

Ending RR MRR 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 154,268

Razor Energy Alloys (PT) Opal Divine Luxury Leather Warren Alloy Avery Ranch Marker Group Colibrys Centerline (Price) First Surgical Condon Pinnacle

Pentagrp (PT) Lange (Price) Fuddruckers Texas Systems K and S General Plastics WISco O Rourke Legacy (Price) Waterloo (Price) Wells Branch Lange (price)

Salv. Sale (PT) PCCA (PT) BPZ Audobon Abox Aztec Razor Mambo (Price) Latrelle's (Price) Internet America (price)Kem Tron (price)

Lupe Tortilla O'Rourke (Price) Hand Erwin Gulf Atlantic Willes Mustang Pentagroup (elim Pass through) CTI

Fuddruckers Weinstein (Price) Energy Alloys Wisenbecker RHJ Salvage Sale (Price) Warren Alloy 2H (price)

(Price) MESA Prestonwood PCCA (price) Tex-Trude (price)

MRR RR Beginning Balance 189,700 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 189,700

Adds 12,639 6,228 2,800 12,800 15,000 - - - 2,000 4,581 5,450 - 61,498

Drops (12,400) (2,250) (19,970) - (6,000) (15,650) (6,250) (14,107) (2,800) (1,500) (9,828) (6,175) (96,930)

Net Change 239 3,978 (17,170) 12,800 9,000 (15,650) (6,250) (14,107) (800) 3,081 (4,378) (6,175) (35,432)

MRR RR Ending Balance 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 154,268 154,268

Average MRR 3,064 3,179 3,101 3,159 3,152 3,100 3,099 3,067 2,995 2,943 2,815 2,805

Average Add 4,000 - 2,800 4,267 3,750 - - - 2,000 3,980 2,725 -

Average Drop (2,400) (2,250) (3,470) - (6,000) (2,375) (3,125) (3,000) (200) n/a (3,750) (2,150)

Customer Count Beg Bal 62 62 61 57 60 63 59 57 53 54 56 57 62

Adds 1 - 1 3 4 - - - 1 2 2 - 14

Drops (1) (1) (5) - (1) (4) (2) (4) - - (1) (2) (21)

Net Change - (1) (4) 3 3 (4) (2) (4) 1 2 1 (2) (7)

Customer Count End Bal 62 61 57 60 63 59 57 53 54 56 57 55 55

Intelligence Dashboards & Routine Reports: Cash Management, Cash Flow Management Client Contracts, Client Invoicing Variances

Expense > $500 not in the forecast Payroll change > or < 20% change Client Invoicing Material Changes Cash Balance below Payroll + Fixed Charges Amount Spend Analysis

Budget (plan and forecast) to Actual Comparison Budget Ratios Operational KPI T3M and Comparison Benchmarks Revenue Forecast, Waterfall Forecast Personnel KPIs Personnel Payroll Reporting Summary – per payroll transaction Client Lifecycle Management Labor Matching, Job Costing, Profitability

Rising Costs of Doing Business• Rising Costs of Processing:

– Average cost of $15 per invoice done manually.

– Almost all of accounting can be done by technology that did not exist 10 years ago.

Time spent processing transactions must be reduced!

• Rising Complexities: – Contingent workers make up a third of the

workforce.– Profitability depends on the success of

client, job or project specific teams. Variances and changes in cash, contracts,

and margins must be managed in real-time!

Companies will spend less time processing and more time on the core business.

Demand for real-time financial reports as well as non-financial reports and intelligence. World-class companies are able to close within one day. Controls and financial reporting reduce risk, cost overruns/rework/errors/theft and variances.

Paperless Bill Management Starts Here…Store documents, process invoices and pay bills online!

You and your staff get a simple web-based interface for submitting bills and collaborating with our accounting firm…

We Manage Your Documents Review Bills and Classify Expenses Securely Pay Online

Simplify document handling Reduce data entry Enforce controls and audit-ability Streamline end-to-end bill workflow

Pay online with advanced fraud controls Eliminate check printing and mailing Simplify vendor management Synchronize with QuickBooks or Intacct

In short, myPolus automates the A/P and bill management process, resulting in faster more accurate processing that frees you and your staff to focus on your core business.

myPolus: Business-class Online Bill Payment

• Easily digitize bills and contracts

• Initiate approval workflows• Anytime remote access• UNLIMITED data storage of

bills and other financial documents

• Audit trail and role-based financial controls

• Quick and easy scheduling of bill payment

• No need to print, stuff, and mail checks

• No need to store check stock• Automatic retention of cleared check images• Enterprise-class fraud protection

• No bank client account info• Positive Pay


Eliminates duplicate entry Maintains consistency Enables sophisticated expense and

cash management Does not impact other accounting

activities

• One-click, 2-way synch

• Instantly access digital images of financial documents

• Google-like search for documents based on keywords or dollar amounts

• Real-time calendar view for cash flow management


Bill Management and Cash Flow

• Scan your invoices and other financial documents. Then email or fax them to your secure online myPolus “inbox”

• Up-to-date to-do list• Real-time calendar

view (with book balance)

Processing Documents in the Inbox

• Mouse over any document image in your inbox to preview the document

• Select the action to process the document and/or file it in your online filing cabinet

Entering a Bill

• Select the Vendor • myPolus’s pre-populates

bill details• Enter the invoice

number and amount• Split the bill to different

GL accounts if necessary• Bills are automatically

routed to the first approver if approval workflow is selected

Review and Approve a Bill

2. Review the bill image, bill details and notes to approve the bill

3. Enter notes or any changes when approving

1. From you email notification, access the myPolus account to review the bill

Schedule Bills for Payment

• Select bills to be paid and the payment method

• Bills will be paid on the scheduled process date

• When paying using the Pay Online method, myPolus debits the payment amounts from your payment account and makes payments on your behalf

Vendor Payment

• Payments to vendors will be made with checks drawn on myPolus’s bank account– Utilizes advanced check fraud

controls– Eliminates check printing and

mailing– Ties payment to the

transaction

• The check shows the invoice to be paid and the account number

• The bottom 2/3rd of the check voucher shows a copy of the invoice to ensure payment is applied correctly

End-To-End Transaction View

• The bill payment information shows the check number, check date and check cleared date

• Once the payment is cleared, the cleared check image is uploaded and associated with the bill and the payment transaction

• Contracts and other documents easily accessible

Have Visibility Using Audit Trail

• The audit trail feature provides you and our firm with detailed information on “who” did “what” “when”

• Demonstrates clear separation of duties in each transaction

• Simple and easy to use for you and your staff– Eliminates need to learn accounting software– Automates workflow, payments and daily financial tasks– Maintains greater control over documents and bank accounts– Makes online bill payment simple and consistent

• Streamlines access to financial information– Gets your information to our firm faster– Lets our firm service you remotely– Provides anytime, anywhere access– Decreases the paper madness

Dashboard Examples via online portal or SharePoint


Dashboard report examples for Key Performance Indicators


Jly 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun-09 TTM

Beginning RR MRR 189,700 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443

4,000 2,600 2,800 2,800 4,250 (150) (3,000) (2,500) (500) 3,980 2,450 (2,800)

3,983 500 (7,000) 4,500 3,250 (3,000) (3,250) (3,500) (1,000) 601 3,000 (600)

4,656 1,928 (1,000) 5,500 3,000 (4,000) (4,000) (1,300) (1,500) (1,850) (1,000)

(2,400) 500 (1,750) 4,500 (1,500) (2,000) 2,000 (3,978) (1,500)

(10,000) 700 (5,600) (6,000) (1,000) (2,107) (3,750) (275)

(2,250) (2,000) (6,000) (250)

Ending RR MRR 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 154,268

Razor Energy Alloys (PT) Opal Divine Luxury Leather Warren Alloy Avery Ranch Marker Group Colibrys Centerline (Price) First Surgical Condon Pinnacle

Pentagrp (PT) Lange (Price) Fuddruckers Texas Systems K and S General Plastics WISco O Rourke Legacy (Price) Waterloo (Price) Wells Branch Lange (price)

Salv. Sale (PT) PCCA (PT) BPZ Audobon Abox Aztec Razor Mambo (Price) Latrelle's (Price) Internet America (price)Kem Tron (price)

Lupe Tortilla O'Rourke (Price) Hand Erwin Gulf Atlantic Willes Mustang Pentagroup (elim Pass through) CTI

Fuddruckers Weinstein (Price) Energy Alloys Wisenbecker RHJ Salvage Sale (Price) Warren Alloy 2H (price)

(Price) MESA Prestonwood PCCA (price) Tex-Trude (price)

MRR RR Beginning Balance 189,700 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 189,700

Adds 12,639 6,228 2,800 12,800 15,000 - - - 2,000 4,581 5,450 - 61,498

Drops (12,400) (2,250) (19,970) - (6,000) (15,650) (6,250) (14,107) (2,800) (1,500) (9,828) (6,175) (96,930)

Net Change 239 3,978 (17,170) 12,800 9,000 (15,650) (6,250) (14,107) (800) 3,081 (4,378) (6,175) (35,432)

MRR RR Ending Balance 189,939 193,917 176,747 189,547 198,547 182,897 176,647 162,540 161,740 164,821 160,443 154,268 154,268

Average MRR 3,064 3,179 3,101 3,159 3,152 3,100 3,099 3,067 2,995 2,943 2,815 2,805

Average Add 4,000 - 2,800 4,267 3,750 - - - 2,000 3,980 2,725 -

Average Drop (2,400) (2,250) (3,470) - (6,000) (2,375) (3,125) (3,000) (200) n/a (3,750) (2,150)

Customer Count Beg Bal 62 62 61 57 60 63 59 57 53 54 56 57 62

Adds 1 - 1 3 4 - - - 1 2 2 - 14

Drops (1) (1) (5) - (1) (4) (2) (4) - - (1) (2) (21)

Net Change - (1) (4) 3 3 (4) (2) (4) 1 2 1 (2) (7)

Customer Count End Bal 62 61 57 60 63 59 57 53 54 56 57 55 55

Dashboard Examples by Corporate Function


SaaS FAO Financial Management Platform

PAAS Infrastructure: SAS 70 Level II

SaaS Platform: SOA, Business Rules Engine, Event-Driven Workflow

Management Science Case StudyThe benefits of financial and administration outsourcing.

Controls Real-time KPIs Management Science

Intelligence Performance Targeting

This is the story of how Management Science guided a growing company as it expanded its scope, capabilities, and locations.

Case Study Summary of Implementing Management Science

• Situation: A staffing oriented, transactional provider with $1M in revenues and 10 employees had the idea to combine consultants “HR Directors” with a Shared Services center to service businesses with “Fractional HR” and provide all the tactical and strategic HR needs of small to medium businesses.

• Programs: Implement Management Science to ensure product, portfolio, channel, and client management is in place and effective.

• Outcomes:– Improved Field Level EBITDA from Break-even to >

30%.– Expanded into new markets.– Recognized as Best Places To Work, Houston Fast

100, Aggie 100.– Funded by institutional investors.

Benefits of Management Science deployed via

outsourced F&A:

Operating Performance improvements realized after the

deployment of Management Science include:

Role Clarity & Qualities of Right Philosophy led to revenue per employee increase of 40% per employee.

Product Management focus led to increased opportunity to close rate.

Client Lifecycle Management led from average 3 year client retention to greater than 5 years.

Pricing intelligence led to 30% price increases for targeted industry vertical segments.


What are the attributes, benefits and outcomes to Management Science?• Benefits of deploying Management Science includes greater controls and intelligence

which means that you can make decisions faster, based on real-time data.

Operational Strategic

Establish controls.

Use measurement and metrics beyond financial measures to drive accountability.

Provide dashboards for all locations, teams, and key employees to facilitate accountability and performance.

Profitability analysis by portfolio, partner, team member, location, client, etc..

Forecasting

Risks are managed.

Client satisfaction is measured, known, and managed (client lifecycle management).

Product/Solution Management (i.e. definition, market share, pricing intelligence).

Asset Utilization.

Balanced portfolio of revenues.

Business model improvements .

Brand equities creation and financial wealth creation.


Management Science Results

• Management Science enables proactive refinement and improvement of the business model, operating processes, and employee productivity.



• Management Science benefits include:



• At the end of the day…. Management Science Drives Performance.
