Profitable growth is one of the five KPIs driving the franchise value of the firm (as illustrated in Figure 11.1). Joseph Strumpf of Wells Fargo says (Strumpf, 2012) that revenue growth is “…the most important measure of service, sales and customer satisfaction. It's the vote our customers cast every day with their pocketbooks. When they rave about our service, they'll give us more of their business, increasing revenue. They'll refer new customers to us. They'll stay with us for life.”
Figure 11.1 Growth as a key driver of franchise value. Reproduced by permission of Allianz SE.
This chapter describes the “rules of the game” for generating profitable growth, highlighting the importance of long-term growth opportunities in addition to excellence in day-to-day sales and distribution activities in the current business footprint.
Rules of the Game and KPIs
Bankers measure it in terms of revenues or net interest income; insurers in terms of premium or new business value; asset managers in terms of net new in-flows or AUM. Although each segment uses a different metric, everyone is talking a lot about growth. This is not surprising since profitable growth is one of the key drivers of a bank or insurer's valuation multiple.
Top- or Bottom-line Growth?
Before discussing growth strategies and metrics, it is important to agree on the type of growth ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
