We are hearing that statement more and more frequently. Chances are you are struggling with one or more of these problems below...

1. Your relationship of revenue to variable cost is out of synch.
2. You are not absorbing growth with capacity already in place.
3. Your management systems do not align sales, pricing and operations.
4. You are still using "Operating Ratio" as the profitability measurement in pricing decisions.
5. You are using wages as a percent of revenue, stops or bills per hour, pounds per man hour as measurement of productivity.
6. You are using an accounting based costing system based on actual costs.
7. External events are putting pressure on and uncovering your internal weaknesses.