Is Value Leakage Sabotaging the Execution of Your Strategy?
The senior executives of Shell Global Solutions felt that they were experiencing extreme value leakage. They had 52 groups involved in developing and delivering 850 discrete products and services. One-hundred-and-ten account managers were delivering $150 million in revenue. By their estimates, it should have been a billion-dollar business. Four years later, after stopping the value leakage, they were at $750 million in revenue despite reducing their salesforce by 60%, down to 42 account managers. The average sale had increased a phenomenal 800%.