Create a “living” driver-tree of your revenue and identify leading indicators

You cannot accurately forecast what you don’t understand. While many CEOs have a strong intuitive grasp of the variables that drive their revenue, far fewer have a deep analytical understanding of them. A digital driver-tree of your business can capture the inputs that influence revenue, sales volume, margins, and costs. It can also help pinpoint forward-looking indicators that can signal when change is afoot. For example, a company that expects to sell a certain volume of a fixed asset that requires inspections could detect a pending slump in sales if inspections suddenly fall.

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