An honest look at
where margin is
leaking.
Twelve questions, a five-point honesty scale. When you're done you'll see a band, a dollar exposure range calibrated to your revenue, and a specific interpretation written for firms your size.
Tell us about your firm.
Price Leakage.
Price and rate you were owed but didn't capture.
We review our pricing and rate card against current delivery costs at least once a year, and we know which engagements or accounts are priced below where they should be.
When someone prices a deal below our rate-card floor it requires approval, and we can see how much of our book is currently priced below floor.
Billing Leakage.
Work you earned but never billed.
We know the average number of days between when work is completed and when the invoice goes out, and we actively manage that number.
We track the dollar amount of billable time that gets written down or written off each quarter, and we know the trend.
Labor Leakage.
Labor cost out of step with the revenue it produces.
We track revenue produced per employee at least quarterly and compare it against each role's fully loaded cost.
When we hire someone new, we can tie that hire to a specific revenue expectation and review their actual production within the first 12 months.
Vendor Leakage.
Indirect and tail spend nobody's watching.
One person or team owns a current, complete list of every vendor the firm pays, and that list gets reviewed at least once a year.
Before any vendor contract renews, someone reviews the terms, compares pricing to market, and confirms we still need the service.
Software Leakage.
Subscription and SaaS spend nobody's watching.
Before renewing any software contract, someone reviews how many licensed seats are actually being used and cancels the ones that aren't.
We've audited our software stack in the past year to identify tools that do essentially the same thing, purchased by different teams at different times.
Collection Drag.
Cash tied up in slow receivables.
We know our current DSO (days sales outstanding) and have a specific target we manage against.
We review aged receivables regularly and know how much is currently sitting past terms on our direct-billed accounts.