Revenue

Revenue is overlooked in a Cost Reduction Project (one-time) or Process (ongoing). It just isn't part of the cutting equation.

Profit improvement (PIP) is more effective because it focuses on loss and revenue in addition to expense. There is room for growth and a future.

	Increased selling prices
	Reduced selling prices (volume growth/market share growth)
	Increased sales of existing products to existing customers
	New products to existing customers
	Retreat from sub-optimal businesses and/or customers
	Product line variations and extensions
	Bundled products and services
	New markets for existing products
	New products for existing markets
	New products for new markets

The Profit Improvement Process focuses on the profitability of sales. Key points about revenue management include:

	Revenue growth is a focal point of the process to keep the company vital and alive.
	Provides a forum for the fair evaluation of revenue opportunities.
	Recognizes that you usually cannot sell yourself out of bad businesses. You just can't make it up on volume when the contribution margin is negative.
	Puts management focus on what's right for the company. It is quite often easier to have your old ideas approved.
	Builds teamwork between the various factions in the company that might have stood in the way of progress.
	Helps educate people on what constitutes profitable business.
	Facilitates better business decisions.