Unlocking Value Creation
As private equity (PE) firms increasingly turn to operating teams to enhance value creation within their portfolio companies, RevOps is becoming a vital component of this strategy. Since 2010, 47% of value creation has come from operations, up from 18% in the 1980s. Meanwhile, financial engineering’s contribution to value creation has fallen to 25% from 51% in the same period (Bililies, 2023).
At revQore, we collaborate with operating teams to provide specialised RevOps and RevTech expertise, helping businesses drive transformation and improve operational efficiency. As both the architect and builder, we dive deep into the company’s challenges, assess the best course of action along with potential consequences, and execute on a project plan or roadmap grounded in RevOps best practices.
The Growing Importance of RevOps in Today’s Landscape
Operational specialists in technology transformation and process optimisation are more crucial now than ever. RevOps brings the specialised knowledge and tools necessary to align the commercial tech stack with go-to-market strategies, ensuring that businesses can scale efficiently.
- A New Era of Value Creation: Operating teams are now integral to private equity (PE) strategies, guiding portfolio companies from due diligence through to exit. With the role of traditional financial engineering diminishing, these teams focus on transforming operational processes to unlock growth. This often involves the expertise of process, systems, and data specialists to drive new efficiencies and ensure alignment across key functions like sales, marketing, customer success, and finance.
- The Importance of Specialist Knowledge: In today’s landscape, operating teams may tap into a network of domain-specific experts for specialised needs. RevOps is one such critical capability, designed to foster alignment and collaboration across go-to-market (GTM) functions. Through optimised data, processes, and systems, RevOps drives both strategic and operational performance.
- Optimising Revenue Operations: By adopting a RevOps first approach (prioritising a RevOps framework in their strategies and processes), companies are better positioned to scale effectively. There are five common ‘areas of concern’ we frequently come across:
- Top of Funnel Metrics & Attribution
- Qualification Framework & Sales Process
- Opportunity Management
- Forecasting
- ARR Reporting
Real-world Examples
1. Revamping Sales Processes and Automation for Company A
Company A was using an outdated Salesforce instance that no longer supported their evolving business processes. Their HubSpot integration was poorly implemented, and lead automation was inefficient. We redesigned their sales process and fully implemented it in both Salesforce and HubSpot, addressing legacy automation issues along the way. Additionally, we delivered key reporting enhancements to enable more accurate forecasting and data-driven decision-making.
2. Unifying Sales Processes After a Merger for Company B
Following the merger of Company B and Company C, the newly combined organisation faced significant challenges due to differences in processes and the use of two separate CRMs. One of the systems had multiple legacy automations and code that frequently caused disruptions. We standardised their sales processes and streamlined the CRM systems to create a unified and efficient operation.
3. Optimising Pricing and Quoting for Company D
Company D struggled with complex pricing and quoting challenges in Salesforce and lacked proper subscription management. To address this, we introduced a third-party CPQ tool, and adjusted their reporting systems to enable clear tracking of subscription-based revenue. This allowed for better visibility across all ARR types—net new, renewal, and expansion.
4. Transforming Revenue Reporting for Company E
Company E relied on spreadsheets for all revenue reporting, which was inefficient and carried high risk. Additionally, Salesforce was being used solely for order entry, limiting its potential. We managed a large-scale transformation project focusing on the opportunity process, billing, and revenue tracking. Implementing third party tools, we transitioned the business to scalable, automated systems.
While these project examples may appear straightforward when summarised here, they often involve navigating complex challenges like cross-functional collaboration hurdles, ensuring smooth adoption and user training (which must be addressed from the outset to ensure lasting success). Operational changes require careful planning and a coordinated effort to overcome those challenges.
Summary
A RevOps-driven approach will become essential for supporting growth, controlling costs, and mitigating risk in today’s evolving business landscape. We feel the integration of a RevOps within a company’s operational strategies positions them well for long-term success.
Sources
Ted Bililies (2023), “Private Equity Needs A New Talent Strategy,” Mondaq Business Review, October 26.
https://www.ft.com/content/bfb99b57-0513-4dcf-b6d3-6d8a93e192cb
