Uncovering the Hidden Drivers of Low Profitability

By Jim Brodo | Oct 29, 2025 8:41:48 AM

Too often, the easy “analysis” of a profit problem is to say we just need to charge more. It’s a convenient narrative, especially in markets where customers are fighting for every penny.

If you’ve ever sat in an Operations or Finance meeting, you’ve probably heard one (or all) of these lines:

  • “We don’t charge enough.”
  • “We’re leaving money on the table.”
  • “We can’t hit GM% goals because the price is too low.”
  • “The customers don’t understand our value proposition.”
  • “We discount too easily.”

And sometimes that’s true, but more often, price is the symptom, not the cause.

In large businesses, the real drivers of margin erosion usually live deep inside the cost structure: inefficiencies, unnecessary levels of bureaucracy, poor communications and workflow systems, systems gaps, supplier creep, or hidden operating costs that quietly pile up. These issues rarely show up in PowerPoints, Monthly Reports, or Board of Directors Presentations, but they absolutely show up in the P&L.

Based on years of experience in business acumen, we have identified five overlooked factors that might be eating away at your operating margin (EBITDA) long before a customer ever sees your price tag.

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Creating a Culture of Business Acumen

By Jim Brodo | Oct 23, 2025 8:09:08 AM

For years, transactional business acumen training lived in the corner of the Learning Management System, a stand-alone course, often sandwiched between time management and communication skills. However, today, the most progressive organizations are taking a radically different approach to embracing the skills needed to understand and set strategy, and then measure the execution of that strategy through financial reports and performance metrics.

They’re thinking across the organization, treating business acumen not as an isolated skill, but as a critical organizational competency that connects all functions and drives the creation of value for customers, employees, and shareholders.

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Overcoming the Transactional Mindset

By Robert Brodo | Oct 21, 2025 8:28:28 AM

“Yeah, yeah, yeah… save the talk about the value proposition. What’s the cheapest price you can give me?”

If that line sounds familiar, you’re not alone. Across almost every industry, the buying process has devolved into a race to the bottom where “value” is measured only in dollars and cents, and where differentiation feels impossible because the customer believes all quality is equal.

But let’s pause and think about that for a moment.

The Kia EV9 Analogy
Take the Kia EV9. In 2025, this electric SUV, priced around $54,000, is packed with features: a long-range battery, advanced safety systems, and technology that would’ve seemed futuristic in 2000. Back then, a car with that level of performance and sophistication would have cost more than $60,000 in year-2000 dollars, and even then, wouldn’t have come close to the quality, reliability, and efficiency of today’s Kia.

The only thing it lacks? A BMW or Mercedes badge on the grille.

In other words, the world has changed. Quality is everywhere. Differentiation is harder to see. And yet, customers are more demanding than ever.

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The Future of Sales: How Strategic Account Management Wins

By Robert Brodo | Oct 15, 2025 9:52:03 AM

Your dinosaur key account managers won’t understand what hit them; much in the same way the dinosaurs roaming the earth didn’t know the 8-mile-long asteroid was about to hit the planet 66 million years ago.

Today’s key account managers will tell you they’ve seen it all, they know it all, and most importantly, they have the 30-year relationships of martinis and steak dinners to prove it.

But things in the business universe are changing quickly, and the impact will be devastating for companies that don’t insist their key account managers get with the times. The next era of customer management requires a seismic shift from relationships built on loyalty to partnerships focused on business outcomes.

We are entering the era of Strategic Account Management, where success comes from insight, agility, and measurable value creation, not just because you bought the customer a steak dinner.

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Data to Decisions: Helping Managers Think Like GMs

By Jim Brodo | Oct 10, 2025 9:45:15 AM

It’s been another long but incredibly productive week working with clients to help their managers build stronger business acumen. One theme kept coming up again and again, in every program, every debrief, every reflection: developing a General Manager mindset.

More and more business leaders are turning to their HR Business Partners, looking for development solutions that go beyond teaching people how to “do their jobs.” They want their new and emerging managers to think like owners—to make decisions that balance short-term execution with long-term enterprise value.

That’s not easy. It doesn’t happen through a workshop or a checklist. It takes time, practice, and the right tools. But when done well, it changes everything.

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