Changing the Way Companies Measure and Manage From Revenue and Costs to Profitability

If you asked most successful senior executives what would transform their businesses, they would answer: “the ability to delegate intelligent decision-making capabilities to each level of the business.” If done correctly, this is the best way to scale an organization profitably. But amazingly, with all the money spent on information technology over the past decade, most corporations don’t know the profit drivers of their business. Industry benchmarks show that between 40-60% of a typical company’s customers, products and orders are unprofitable at the net operating level. The solution seems simple: if a company knew which customers, products and orders were unprofitable, it could attack the problem areas head-on. Unfortunately, it hasn’t been that easy

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