Using Your IDAC Score To Compare Your Performance To Your Services Value

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As you learned in our previous session, IDAC scoring works the same way LSRP scoring works. It is an absolutely simple way of evaluating your service offerings, and their profitability.


Just as LSRP Scoring gives you a multi-dimensional way to look at your clients, IDAC Scoring gives you a multi-dimensional way to look at your services.

With IDAC Scoring, you can quickly assess whether a service you offer helps build your reputation through your ability to Innovate, or damages it through Complaints and Missed Deadlines, whether meets the needs of your target market through User acceptance, and whether it adds to the Dollars entering your revenue streams through its profitability multiplier.

Innovation – Innovation is an externally focused activity which enhances your professional reputation as a market leader. No matter what the market share of an innovator, those that follow are seen as laggards and copycats.

Deliverability– Client satisfaction is a hard item to measure, but it can be approximated with how you perform. If you are consistently late with delivery of a service, or are missing deadlines when performing a service, then it may indicate that you are offering a service which you cannot effectively deliver. The number of deadlines you miss has an internal focus based on the capabilities of your resources.

Adoption – How well the solution offered by your business model fits the needs of your target market is reflected in the user adoption of your service. The adoption rate of your product or service is an externally focused parameter based on the proportion of your clients who are actively using the particular service.

Contribution – How much the service contributes to your practice profitability is an internally focused parameter which affects the viability of your practice, and its ability to survive.

It might be worthwhile now, to evaluate each of your services to see if it will add value to your firm, or not, and whether you have the capabilities to perform on your promise or not, regardless of your capabilities and resources.

Go ahead and download the Rainmaker Value Performance Matrix, print it out and take a look at it while I explain it.

This worksheet is a way to determine which of your products or services have value to your market and to your firm, and which you can perform well when delivering. It also gives an indication of where the focus of your value proposition is weak, whether it is internally or externally weak.

The idea for this matrix evolved from the “Ansoff Growth Matrix,” first developed by Igor Ansoff in 1957, with the internal and external parameters as added enhancements.

To portray alternative corporate growth strategies, Ansoff presented a matrix that focused on a firm’s present and potential products and markets or customers. By considering ways to grow through existing products and new products, and in existing markets and new markets, he showed that there are four possible product-market combinations, which gave four different growth strategies:

Just as Ansoff showed that a firm could use a broad product portfolio to develop different growth strategies for a firm, so too can a value proposition management strategy be developed for a limited line of products or services using the Value Performance Matrix.

The market penetration strategy should leverage many of your firm’s existing resources and capabilities but will not add significantly to the value of the firm. Services which score in this quadrant are either not being adopted significantly by clients, or do not have sufficient profitability to contribute to the firms longevity.

An independent practitioner can develop a reputation as a strong service provider, but for a service that is not very high in demand, or does not contribute very much to cash flow. And, not having in-demand, differentiated services, leaves your practice at a disadvantage to new, more aggressive competitors.

An independent practitioner can develop a reputation as a strong service provider, but for a service that is not very high in demand Click To Tweet

A tactic of market development may be a good option if your value proposition has solid acceptance and your firm’s core competencies are related more to the specific product than to its experience with a specific market segment. Because you are scoring in this quadrant, it is probable your practice may be developing new services with strong client acceptance, and while a market development strategy typically has more risk than a market penetration strategy, your ability to deliver and generate cash flow strengthens your position.

Diversification is the most risky of the four Value Proposition management strategies since it requires modification of multiple business model factors, and may indicate major problems within your practice. However, if your Value Proposition is not being adopted by the market, and even when adopted, you are unable to deliver, then diversification may be your only reasonable choice.

Diversification is the most risky of the four Value Proposition management strategies Click To Tweet

A product development strategy may be appropriate if your weak performance is related to a failure to introduce newly developed value propositions on a timely basis. However, if your problems are internal, as evidenced by your inability to deliver the service or product, then you will have to focus on development of resources which will give you the capability to deliver on your value proposition.

The scoring process is simple, merely multiply each set of value, the performance parameters of innovation and deliverability, and the value parameters of adoption and contribution to get the two functions necessary to plot on the matrix.

Once you have the functions of the parameters plotted, you will have a quick visual idea of a suggested generic tactic to be applied to your current value proposition.

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