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Showing posts with the label Revenue_leaks

Why Business Processes Can Work Perfectly - and Still Fail to Generate Profit (and How to Fix It)

Many companies invest time and resources in process optimisation, yet real results remain invisible . Teams work, KPIs may look good, but revenue and profit don’t increase . Often, leaders blame employees: "They don’t follow instructions", "They’re not performing", or "They’re inefficient". In reality, the problem usually lies in the economics of the process , not in people. In this post, we’ll explore where processes break down , how to identify it, and what steps actually make processes generate value. Where Processes Break Down 1. No Owner of the Outcome A process may have an owner, but often no one owns the economic result . Example: marketing generates leads, sales closes deals, finance collects payments. No one owns the end-to-end revenue , so money can get lost between departments. 2. Conflicting KPIs Processes fail when metrics incentivise the wrong behaviour: Support closes tickets quickly → quality drops Sales push volume → margi...

Many Businesses Don’t Know Their Unit Economics - And Crisis Exposes Them

It’s a simple truth most small and medium businesses ignore: you can’t manage what you don’t measure . When times are good, revenue growth can hide inefficiencies. But in a downturn, the cracks show: Customers hunt for bargains. Sales of lower-priced products spike. Profitable items stall. The result? Revenue might look healthy, but profits disappear . Companies are effectively selling themselves into a loss, even while turnover seems stable. This happens because many businesses don’t understand their unit economics  - the real cost and margin of serving a single customer or selling a single product. Without this insight, decisions are reactive: cut prices to move volume, not to protect profit. Crisis is a stress test. Only those who know the numbers - cost per customer, contribution margin, break-even points- can make strategic choices: Focus on profitable products. Adjust pricing intelligently. Stop chasing revenue at the expense of survival. Lesson: ...