The universal goal of every company is to grow profits by creating value for customers and getting paid for the effort. The goal may be simple, but achieving it is a complex process involving hundreds of interconnected decisions across the company.
Each decision, if not made correctly, leaks away a small portion of future profits. For example, product managers reduce margins by building high-performing products that customers don’t value and won’t pay for. Marketing managers leak revenue by targeting segments in which the potential to create value or get paid is low. Sales people leak revenue and margin by failing to communicate the quantified worth of products and services. Although the business impact of a single leak is minimal, the combined effect of hundreds of leaks across functional areas is a massive drag on profitable growth.