Insights
Notes on running services firms profitably.
Notes by Gerben Bosch, the founder of Profitdrive, for owners of IT and professional services firms, on pricing, staffing and seeing profit before the month closes.
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AI will make services firms more productive. Not automatically more profitable.
AI is speeding 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.
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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 once the firm grows past what the founder can see day to day.
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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.
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