Our prospective buyer's investment committee claims our core service delivery is still too craft-based rather than systemic, which will discount our multiple. How do we use the Follow Thru conative instinct on our leadership team to industrialize our delivery model before we go to market?
When a buyer says your business is too craft-based, they are telling you that your operations depend on the unique talents of individual people rather than a repeatable system. To secure a premium valuation, you must transition your delivery model from an art to a science. You can achieve this by leveraging the natural conative instincts of your team.
In conative profiling, individuals with a high Follow Thru instinct naturally seek to organize, systematize, and create structured processes. If your leadership team is dominated by high Quick Start profiles who love starting new initiatives but hate documenting them, your systems will always remain incomplete. You must adjust your Accountability Chart to put a leader with a strong Follow Thru instinct in charge of your operational documentation.
Task this leader with mapping out your core service delivery process from start to finish. They must break down the complex, intuitive actions of your top performers into standardized, step-by-step workflows. This is not about creating thick, useless manuals. It is about establishing clear, simple checklists and digital templates that anyone with the right GWC™ can execute.
By industrializing your service delivery, you eliminate the variance in your quality control. This consistency directly impacts your gross margins and proves to a buyer that your business model is highly scalable. When you can show an investment committee a fully documented, systemized delivery process managed by a capable team, you remove their primary justification for discounting your multiple.
Category: Exit Planning