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Hexona

Hexona Systems· Insights

Written to the question,not to the keyword.

Each one answers what it asks in the first hundred words, shows its arithmetic, and says plainly where a figure depends on your own numbers rather than inventing an average.

01All insights

01·Diagnosis

What is revenue leakage, and how is it measured?

Revenue leakage is demand a company already paid to acquire and then fails to convert for operational rather than commercial reasons: the enquiry that waited two days for a reply, the quote never followed up, the renewal nobody owned. It is measured by tracing every path a lead can take through the systems of record, finding where each stops, and pricing what stopped against the company’s own conversion rates and deal values. It is invisible in ordinary reporting because a lead that was never captured generates no record, and a record that does not exist cannot appear in one.

5 min read

02·Cost

How much does a revenue leakage diagnostic cost?

This firm charges a fixed $5,000 for a leakage diagnostic, credited in full against implementation if you proceed. So if you build, the diagnostic effectively cost nothing; if you do not, you keep the report and the roadmap anyway. The figure to compare it against is not other firms’ fees — it is the annualised leakage the diagnostic is looking for, which at a company doing $3M to $15M is routinely two orders of magnitude larger than the fee. That asymmetry is the only reason a fixed price works at all.

5 min read

03·Engagement

How long does a revenue leakage diagnostic take?

Ten business days from systems access. The anchor is the important half of that sentence: between commissioning and access sit kickoff scheduling and credential provisioning, which realistically add a further five to ten days, so two weeks from purchase is not the same claim and should never be made. Most of the ten days goes on instrumentation — tracing every path a lead can take through the systems and finding where each one stops — and almost none of it is visible to the client while it happens.

5 min read

04·Diagnosis

Revenue leakage vs. a sales problem: which one do you have?

You have a leakage problem if demand is arriving and being lost after arrival for operational reasons, and a sales problem if the demand converting poorly is demand your team actually spoke to. The test separates them in an afternoon: split last quarter’s enquiries by whether they got a genuine human response inside an hour, then compare conversion between the two groups. If the fast group converts materially better and the slow group is large, the constraint is operational and hiring more salespeople will not fix it. If both groups convert about the same, the constraint is commercial.

4 min read

05·Comparison

Operational diligence vs. management consulting: what is the difference?

The difference is what a deliverable is allowed to contain. Management consulting produces recommendations supported by interviews, benchmarks and analysis; operational diligence of this kind produces figures measured inside your own systems, with the system and the period named against each one, and excludes anything it cannot measure there. That exclusion is the whole distinction. It makes the output narrower, considerably cheaper — a fixed $5,000 rather than a scoped engagement — and testable, because every number in it can be re-derived by somebody who does not trust you.

5 min read

06·Strategy

Which revenue leaks are worth closing first?

Rank every leak by recoverable dollars divided by the effort to recover it, and work in that order — which is almost never the list by size. The largest leak is usually the hardest to close, because size and structural depth correlate: a leak between two systems that cannot talk to each other is big and expensive, while one caused by nobody owning a follow-up step is smaller and closable in a fortnight. Early credibility funds everything after it, so the first build should produce a measurable number inside one sales cycle.

5 min read

07·Measurement

How do you measure the ROI of closing a revenue leak?

Capture the baseline before the build starts — that is the only moment an honest baseline still exists — then measure recovery in the same system the leak was found in, against that same baseline, over a stated window. Three numbers survive scrutiny: found, which is annualised leakage identified; sealed, which is annualised recovery actually measured afterwards and is always smaller than found; and payback, the number of weeks for measured recovery to equal total fees paid. Hours saved does not survive, because the freed hour gets absorbed rather than reallocated and never reaches a P&L.

5 min read

08·Measurement

How to price a revenue leak in EBITDA

Convert recovered revenue to EBITDA by applying the incremental contribution margin on that revenue — not your blended gross margin, and not your net margin — then subtract the annualised cost of whatever now runs the recovered process. The result is usually a fraction of the headline revenue figure, and stating it that way is what makes it credible to an investment committee. Multiplying that EBITDA figure by your sector’s multiple gives an enterprise-value effect, which is the number that actually decides whether an operational build gets funded at a sponsor-backed company.

4 min read

09·Engagement

What access does a revenue leakage diagnostic need, and what should you demand in return?

Read access to every system that touches a lead — CRM, inbound channels, calendar, ticketing — plus twelve months of whatever history those systems already hold. That is narrower than most buyers expect: it does not require financial systems, HR records, document stores or payment details. In return you should demand read-only access wherever the system supports it, a named engagement team, a stated retention period, and a defined answer for what happens to the credentials at the end. A firm that has not thought those through has not done many of these.

5 min read

10·Engagement

What happens if a diagnostic finds nothing worth fixing?

The report says so in its first paragraph and the firm tells you not to hire it. That should be a written term of the engagement rather than a reassurance on a call, because it is the only structural counterweight to a fee that is credited against implementation — without it, the firm is paid for finding something. In practice a fully null result is rare at $3M to $15M, but a result too small to justify a build is not rare at all, and the two should be treated the same way.

4 min read

Or have it measuredin your own systems.

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