An operating model for Recurring Revenue Companies - The Six Sigma for SaaS

This video is ideal for executives of a recurring revenue business that operates anywhere from $20M to $500M in ARR. It is intended to be shared among the revenue leaders to gain a common understanding of what to put in place over the coming months.
At around $20M, a recurring revenue business starts to operate like a revenue factory. And like a factory, it is tasked to increase production at a lower cost and produce a higher quality of goods, in this case, customers/revenue, etc.
But most SaaS companies are not built this way... they are built on the use of low-cost resources; they have favored speed over quality and responsiveness to the market over processes. There has never been an opportune moment to "change" from the freewheeling experience that gets a startup to $10M in ARR to that of a more structured approach that is needed to get a ScaleUp/GrownUp to $100M/$10B in ARR.
Other industries that have had similar issues. In particular, with growth challenges, out-of-control costs, and a decline in the quality of deliverables, at some point had to establish an operating model and apply an improvement process.
In this video, Jacco explains the concept of GTM and the need for a Quality Improvement process similar to what Agile has done for software.
4m35s) Explain the concept of GTM, a system-wide approach to generating revenue vs. how we are currently structured in sub-systems, each operating in a silo.
6m45s) Sustainable Growth (vs. Scalable Growth) and what goes wrong in many public SaaS companies.
18m00s) How SaaS performed extremely well in every area except Go To Market.
21m20s) The 6 models that together govern recurring revenue operations such as SaaS.
22m) The Revenue Model
24m50s) The Data Model
26m10) Mathematical Model
29m00s) GTM Model
32m50s) Growth Model
and finally
34m50s) Operating Model - A 2024 strategic initiative of launching a "Six Sigma" for GTM. For this, we provide the WbD Recurring Revenue Operating Model as a starter kit.
41m30s) Use of iterative processes.
43m40s) Where does lack of performance come from, and how can we fix it.
47m40s) Concept of SPRINTS (vs. training). Sprints are focused on improving growth through the coaching of front-line performers on the skill vs the managing of a rep on volume metrics.
49m40s) The most common sprints and their impact.
Enjoy!
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About Winning By Design:
WbD is a global B2B revenue consulting and training company that enables recurring revenue teams to architect sustainable growth. Leveraging its experience with high-growth companies, WbD applies scientific frameworks and proven models to help sales, marketing, and customer success teams at B2B companies and global enterprises maximize their impact. WbD has reinvented the traditional sales funnel with disruptive customer-centric frameworks and methodologies, including the Bow Tie Data Model and the SPICED Methodology, all of which can be accessed as open source. Founded in 2012, WbD is a fully remote company serving 600+ leading organizations worldwide. To learn more about Winning by Design, visit winningbydesign.com.

[@julianatubino5935]

great content, Jacco. Regarding onboarding and enablement, thinking how to apply the same logic for a channel strategy - once i agree certifications are not in fashion (if they had ever been) but need to “ validate” skills for customer reference - maybe partner reviews by customers? customer references ?

[@long_at_abivin_com]

At 15:30, it was not clear about the horizontal axis legends: 1) Are you assuming the T2D3 growth model is correct, and if so, what reasons make it correct? 2) The numbers do not align with T2D3: $15M, $35M, $70M (these are doubles, ok), then $100m, $400m??? Assumption for T2D3 that I read was that we try some what to achieve: 1) MVP stage: $1-2M ARR 2) Then T2D3 will make it scale 100x to make the $100M ARR after 5 years.