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Revenue Architecture: Why Math is the Business - Mastering the Mathematics Model for SaaS Growth | Gaz Evans | S5 E8

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Manage episode 507808165 series 3644325
Content provided by Mike J Midgley. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike J Midgley or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

Here are the core areas we discuss in today's episode:

1: The Math Foundation: Why Numbers Drive Everything

Gaz opens with a fundamental truth that challenges the growth-at-all-costs mentality that has dominated SaaS for years. His perspective on why companies fail reveals the critical importance of mathematical understanding.

"Companies like SaaS companies... it's not. They don't fail because of a lack of ambition. They fail because they don't really understand the math of their business right? And there's this been this growth at all costs. Focus heavily on the top of funnel. Get everything in, and then sort of just forget about the other side."

2: The Bowtie Revelation: Seeing the Complete Picture

Gaz describes his first encounter with the Winning by Design framework as a transformative moment that codified everything he'd been thinking about GTM for years.

"I immediately messaged the CRO from that story my business partner, and was like, I've just watched someone explain in the best way I've ever heard everything that we've been talking about for the last 6 years... that is the best way to succinctly explain to somebody what it is they need to do in go to market."

3: Breaking the Sauron Syndrome: Ending Departmental Blame Games

One of Gaz's most powerful analogies describes how leadership often behaves like "the eye of Sauron," constantly scanning for someone to blame when things go wrong, rather than understanding the interconnected nature of GTM challenges.

"Often when things start to go wrong in the business, leadership becomes like the eye of Sauron, it must be sales. It must be marketing... and they get to the end of quarter and go. Oh, wait! Hold on! No, it wasn't the product... and they're constantly scanning looking for a simple problem. And often these things aren't simple. Single answer. Silver bullet problems. They are a interrelation, a dance of things that are happening."

4: Micro-Optimizations: The Compound Power of Small Changes

Gaz emphasizes how understanding the math enables powerful micro-optimizations that can have massive compound effects across the business.

"The idea of those micro adjustments is really powerful... that enables you to have an aligned, unified GTM discussion because it's not sales. You have to make 30% more... it's sales. We just need to increase the win rate. And then how can I help you increase win rate? Well, we need better quality MQLs, okay, great. So let's change. Let's adjust what we need to do in MQLs."

5: AI-Native vs. SaaS-Native: The Process-First Revolution

Gaz provides crucial insights into why AI-native companies are outpacing traditional SaaS companies, and it's not just about the technology—it's about fundamental operating principles.

"The AI native companies are process driven. They use data to make very quick decisions. They are constantly refining through feedback loops... The SaaS companies are still stuck... they're buying AI tools, but they're often not ready to even be getting the efficiencies out of it. It's really just sort of oh, I hope this works."

Final Thoughts

Gaz leaves us with a critical warning about the dangers of using AI without understanding the underlying business math.

"Strip out all of the AI pieces. Do you understand the operating math of your business. Do you understand the operating model? So when you plug in AI, it's going to make you more efficient and better and faster. But you understand what it's anchored in, and yo

Support the show

Learn more at www.forceandfrictionpodcast.com

  continue reading

64 episodes

Artwork
iconShare
 
Manage episode 507808165 series 3644325
Content provided by Mike J Midgley. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike J Midgley or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

Here are the core areas we discuss in today's episode:

1: The Math Foundation: Why Numbers Drive Everything

Gaz opens with a fundamental truth that challenges the growth-at-all-costs mentality that has dominated SaaS for years. His perspective on why companies fail reveals the critical importance of mathematical understanding.

"Companies like SaaS companies... it's not. They don't fail because of a lack of ambition. They fail because they don't really understand the math of their business right? And there's this been this growth at all costs. Focus heavily on the top of funnel. Get everything in, and then sort of just forget about the other side."

2: The Bowtie Revelation: Seeing the Complete Picture

Gaz describes his first encounter with the Winning by Design framework as a transformative moment that codified everything he'd been thinking about GTM for years.

"I immediately messaged the CRO from that story my business partner, and was like, I've just watched someone explain in the best way I've ever heard everything that we've been talking about for the last 6 years... that is the best way to succinctly explain to somebody what it is they need to do in go to market."

3: Breaking the Sauron Syndrome: Ending Departmental Blame Games

One of Gaz's most powerful analogies describes how leadership often behaves like "the eye of Sauron," constantly scanning for someone to blame when things go wrong, rather than understanding the interconnected nature of GTM challenges.

"Often when things start to go wrong in the business, leadership becomes like the eye of Sauron, it must be sales. It must be marketing... and they get to the end of quarter and go. Oh, wait! Hold on! No, it wasn't the product... and they're constantly scanning looking for a simple problem. And often these things aren't simple. Single answer. Silver bullet problems. They are a interrelation, a dance of things that are happening."

4: Micro-Optimizations: The Compound Power of Small Changes

Gaz emphasizes how understanding the math enables powerful micro-optimizations that can have massive compound effects across the business.

"The idea of those micro adjustments is really powerful... that enables you to have an aligned, unified GTM discussion because it's not sales. You have to make 30% more... it's sales. We just need to increase the win rate. And then how can I help you increase win rate? Well, we need better quality MQLs, okay, great. So let's change. Let's adjust what we need to do in MQLs."

5: AI-Native vs. SaaS-Native: The Process-First Revolution

Gaz provides crucial insights into why AI-native companies are outpacing traditional SaaS companies, and it's not just about the technology—it's about fundamental operating principles.

"The AI native companies are process driven. They use data to make very quick decisions. They are constantly refining through feedback loops... The SaaS companies are still stuck... they're buying AI tools, but they're often not ready to even be getting the efficiencies out of it. It's really just sort of oh, I hope this works."

Final Thoughts

Gaz leaves us with a critical warning about the dangers of using AI without understanding the underlying business math.

"Strip out all of the AI pieces. Do you understand the operating math of your business. Do you understand the operating model? So when you plug in AI, it's going to make you more efficient and better and faster. But you understand what it's anchored in, and yo

Support the show

Learn more at www.forceandfrictionpodcast.com

  continue reading

64 episodes

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