Notes on running services firms profitably.
Short pieces on commercial discipline, leverage, and the operating model behind forward profit.
AI Will Make Services Firms More Productive. Not Automatically More Profitable.
AI will speed up services delivery, but speed and profit are not the same thing. Without pricing discipline and a redesigned operating model, productivity gains become client discounts rather than margin.
Profitability Principles Are Known. The Hard Part Is Running Them.
Most services firm owners already know the profitability principles. The hard part is running them as the firm grows beyond founder line-of-sight — when discipline has to become system behaviour, not management intention.
Revenue Is Growing. Why Is Profit Not Following?
Revenue growth does not automatically become profit growth in a services firm. Profit follows the quality of the revenue, the pricing discipline behind it, the leverage model used to deliver it, and how quickly leaders see the financial consequences of operating decisions.