Operating leverage is the ratio of annual sales growth percentage to overhead growth percentage. Say that you grow your revenues by 10% in a given year and your overhead expense grows at the same rate. That is a 1-1 ratio and indicates no operating leverage at all. In my “best in class” world, that would …
Operating Leverage: What it is and why it’s an important KPI Read More »
Office politics exist in almost all businesses. People are human beings with a tendency to look out for themselves first and foremost. And inevitably this means conflict and power dynamics will arise, even among those with the best of intentions. Having said this, office politics is a value destroyer that cannot be tolerated because it’s …
Office Politics is a Value Destroyer: Here’s How to Fix It Read More »
I’ve spoken to a number of industrial product manufacturing business owners who are interested in improving their firm’s operational performance, but aren’t exactly sure where to start. Here are a few KPIs to evaluate yourself against to determine which areas of the business may need attention. Sales per Employee A good measurement of how efficient …
