Strategies for Growth in 2012:
Sync CRM and Financial Management to Drive Performance.
Financial Controls
Intelligence
Performance Targeting
“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.”
Revenue Management
Real-time KPIs
SaaS F&A Platform
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.”
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.

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.
www.EphorGroup.com
2

Referrals from partners, alliances, and communities
will generate the majority of
new clients.
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
II.
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.
3
Questions Answered by Synching CRM and Financials
•
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.”
Questions Answered by Synching CRM and Financials
Cost of $1.00 of Revenues Varies by Channel:
Revenue Waterfall Management = Greater Profits:
>
Lower cost of client acquisition and greater
profitability by client coupled with predictable
sales forecasting and budgeting because of
proactive management.
> How does your cost of client acquisition compare to competitors?
Email us at Polus for a complimentary report for your industry sector.
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.
A case study:
Management Science Drives Performance:
 Whom needs help? i.e. which employees or
partners are underperforming. Which clients
need attention.

Where to focus resources.
Outcomes also included:
Improved Revenue Per Employee by almost $10k
6
per month employee.
Increased NLTV per client 2X.
Management Science Required for Revenue Growth
Marketing is Hard
Partners Matter
• Crowded marketplace
• Too much advertising
• “Committee Buy”
• Resource constraints
• Buyers require Immediate ROI from a
Branded Leader
Conversion Rate from Lead to Close
Direct
Referral
Channel
• Reputation = Lower cost of sales
• Use of best practices from both organizations
Direct
Partners
Team Management
is Key
Operations
• Provide expertise and service
• Must be committed to client outcomes
CRM
Opportunity
New
Opportunity
from a Partner’ Client
Origination
MAPPING
Alignment
Upsell
Client Management
Upsell
“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
> Download additional resources at:
http://www.polusgroup.com/resources.asp
Management Science Benefits
(financial and administration outsourcing drives Management Science)
Controls
Intelligence
Performance Targeting
Real-time KPIs
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.
Clients are technology and service
providers that depend on the daily
performance of employees.
Recent Client Accomplishments:
•
Polus Group supports more than $500m in annual revenues for
our client companies throughout the Americas.
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
• 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
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).
Your Company
Before Management Science
With Management Science
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.
Done ad-hoc on a daily basis by an
employee part-time.
Automated invoicing and cash collection saves
time, processing costs, reduces manual errors.
Done at end of month and end of period.
Cash actuals integrated with QuickBooks in realtime.
Excel and/or manual review done after
the period.
Labor Matching applied every two weeks to
match costs and profits.
Controls
Billing/Invoicing
Cash Management
Labor Cost
Management

Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
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.
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.
Management Science
Controls
Cash
Client Contracts
Key Performance Indicators
F&A Services
AP
AR
Billing/Invoicing
Payroll
Time and Expense
Spend Management
GL
Cash Management
Jly 08
Aug 08
(10,000)
700
(2,250)
(2,000)
189,939
193,917
176,747
4,000
4,656
Razor
PCCA (PT)
(1,000)
(1,000)
182,897
Luxury Leather
Audobon
(4,000)
(2,000)
Avery Ranch
Marker Group
K and S
General Plastics
WISco
Abox
Colibrys
O Rourke
Aztec
Erwin
(2,800)
(600)
(1,000)
(3,978)
Razor
Gulf Atlantic
Willes
RHJ
(1,500)
(275)
154,268
Centerline (Price)
First Surgical
Legacy (Price)
Waterloo (Price)
Mambo (Price)
Latrelle's (Price) Internet America (price)Kem Tron (price)
Mustang
Condon
Pinnacle
Wells Branch
Lange (price)
Pentagroup (elim Pass through) CTI
Salvage Sale (Price)
Warren Alloy
PCCA (price)
2H (price)
Tex-Trude (price)
189,547
15,000
-
2,000
4,581
-
(6,000)
(15,650)
(6,250)
(14,107)
(2,800)
(1,500)
(9,828)
12,800
9,000
(15,650)
(6,250)
(14,107)
(800)
3,081
(4,378)
(6,175)
(35,432)
198,547
182,897
176,647
162,540
161,740
164,821
160,443
154,268
154,268
189,939
193,917
176,747
189,547
-
182,897
176,647
-
3,101
3,159
3,067
2,995
4,000
-
2,800
4,267
3,750
-
-
-
2,000
(2,250)
(3,470)
-
(6,000)
(2,375)
(3,125)
(3,000)
(200)
62
62
61
60
63
59
57
53
-
-
-
1
(5)
3
-
4
(1)
3,100
(4)
3,099
162,540
(2,400)
57
3,152
198,547
TTM
160,443
2,450
3,000
(1,850)
160,443
(250)
Warren Alloy
Wisenbecker
Jun-09
164,821
(3,750)
Average Add
-
601
(1,500)
164,821
2,000
Average Drop
1
3,980
(1,300)
161,740
12,800
(17,170)
Adds
May 09
161,740
(500)
(1,000)
(2,107)
176,747
(19,970)
3,978
Customer Count Beg Bal
(2)
161,740
2,943
3,980
n/a
54
1
(4)
-
2
-
164,821
5,450
2,815
160,443
-
-
57
2
(96,930)
2,805
(2,150)
56
(1)
189,700
61,498
(6,175)
2,725
(3,750)
-
62
14
(1)
(1)
-
(1)
(4)
3
3
(4)
(2)
(4)
1
2
1
(2)
(7)
62
61
57
60
63
59
57
53
54
56
57
55
55
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
Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Apr 09
162,540
(2,500)
(3,500)
162,540
2,800
6,228
(2,250)
239
3,179
Mar 09
176,647
(3,000)
(3,250)
176,647
193,917
12,639
3,064
Feb 09
182,897
(4,000)
(1,500)
(6,000)
(12,400)
Average MRR
(150)
(3,000)
3,000
4,500
Texas Systems
Prestonwood
Jan 09
198,547
4,250
3,250
(6,000)
198,547
BPZ
Hand
Energy Alloys
MESA
Dec 08
189,547
5,500
Opal Divine
O'Rourke (Price)
Weinstein (Price)
(Price)
189,939
2,800
4,500
189,547
Fuddruckers
Lupe Tortilla
189,700
Nov 08
176,747
(1,750)
(5,600)
Fuddruckers
Drops

Lange (Price)
2,800
(7,000)
Adds
MRR RR Ending Balance







500
Drops
Net Change
Net Change
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
500
1,928
Energy Alloys (PT)
Pentagrp (PT)
Salv. Sale (PT)
MRR RR Beginning Balance
193,917
2,600
3,983
Customer Count End Bal



189,939
Oct 08
189,700
Ending RR MRR
(2,400)

Budget (plan and forecast) to Actual Comparison
Intelligence Dashboards & Routine Reports: Intelligence
Sep 08
Beginning RR MRR
(2)
(21)
Rising Costs of Doing Business
•
Rising Costs of Processing:
–
–

•
Rising Complexities:
–
–


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!
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
Simplify document handling
Reduce data entry
Enforce controls and audit-ability
Streamline end-to-end bill workflow




Securely Pay Online
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
myPolus: Business-class Online Bill Payment
• 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
myPolus: Business-class Online Bill Payment
• 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
1. From you email notification,
access the myPolus account to
review the bill
2. Review the bill image, bill details
and notes to approve the bill
3. Enter notes or any changes when
approving
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
•
•
•
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
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
Dashboard Examples via online portal or SharePoint

Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Dashboard report examples for Key Performance Indicators
Jly 08
Beginning RR MRR
Ending RR MRR
MRR RR Beginning Balance
Sep 08
Oct 08
Nov 08
Dec 08
Jan 09
Feb 09
Mar 09
Apr 09
May 09
Jun-09
TTM
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
(2,250)
(2,000)
189,939
193,917
176,747
(5,600)
(6,000)
(1,000)
198,547
182,897
(2,107)
(3,750)
(6,000)
189,547
(275)
(250)
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)
Gulf Atlantic
Willes
Mustang
RHJ
Salvage Sale (Price)
Lupe Tortilla
O'Rourke (Price)
Hand
Erwin
Fuddruckers
Weinstein (Price)
Energy Alloys
Wisenbecker
(Price)
MESA
Prestonwood
189,700
189,939
Pentagroup (elim Pass through) CTI
Warren Alloy
PCCA (price)
193,917
176,747
189,547
198,547
2H (price)
Tex-Trude (price)
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)
239
3,978
(17,170)
12,800
9,000
(15,650)
(6,250)
(14,107)
(800)
3,081
(4,378)
(6,175)
(35,432)
154,268
Net Change
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
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)
(3,750)
(2,150)
62
62
61
60
63
59
57
53
-
-
-
Customer Count Beg Bal
Adds
1
Drops
(1)
Net Change
Customer Count End Bal

Aug 08
189,700
-
57
1
(1)
(5)
-
(1)
(4)
62
61
57
3
-
4
n/a
54
1
(1)
(4)
(2)
(4)
-
3
3
(4)
(2)
(4)
1
60
63
59
57
53
54
2
-
56
2
57
-
62
14
(1)
(2)
(21)
2
1
(2)
(7)
56
57
55
55
Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Dashboard Examples by Corporate Function

Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
SaaS FAO Financial Management Platform
SaaS Platform: SOA, Business Rules Engine, Event-Driven Workflow
PAAS Infrastructure: SAS 70 Level II
Management Science Case Study
The benefits of financial and administration outsourcing.
Controls
Real-time KPIs
Intelligence

This is the story of how Management Science guided a growing company as it
expanded its scope, capabilities, and locations.
Management Science
Performance Targeting
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.
Benefits of Management
Science deployed via
outsourced F&A:
Operating Performance
improvements realized after the
deployment of Management
Science include:
•
Programs: Implement Management Science to ensure
product, portfolio, channel, and client management is in
place and effective.
 Role Clarity & Qualities of Right
Philosophy led to revenue per
employee increase of 40% per
employee.
•
Outcomes:
 Product Management focus led
to increased opportunity to close
rate.
–
–
–
–

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.
Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
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.
 Risks are managed.
 Use measurement and metrics beyond financial
measures to drive accountability.
Client satisfaction is measured, known, and managed
(client lifecycle management).
Provide dashboards for all locations, teams, and key
employees to facilitate accountability and performance.
Product/Solution Management (i.e. definition, market
share, pricing intelligence).
Profitability analysis by portfolio, partner, team member,
location, client, etc..
Asset Utilization.
Balanced portfolio of revenues.
Forecasting
Business model improvements .
Brand equities creation and financial wealth creation.

Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Management Science Results
•

Management Science enables proactive refinement and improvement of the business
model, operating processes, and employee productivity.
Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Management Science Results
•

Management Science benefits include:
Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.
Management Science Results
• At the end of the day…. Management Science Drives Performance.

Management Science enables proactive refinement and improvement of the
business model, operating processes, and employee productivity.