The Margin Diagnostic

Thin profit is a symptom, and the leak is almost always higher up than the final number you notice.

Chart: The Margin Diagnostic. Thin profit is a symptom, and the leak is almost always higher up than the final number you notice.
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The mechanism

The chart stacks three profit checkpoints to read from the top down. The first is money left after outside costs, the second is money left after the team delivers the work, and the last is money left after running the business. You read down until the first one that falls short - that's where the money is leaking, and the final number is the last place to look, not the first. A side note adds that if all three fall short, no operations fix helps and the real problem is who you're for.

Part of Persistence. Infrastructure that keeps growth compounding past founder heroics.