Harvard Business Review’s Post

EFFECTIVENESS OF PURPOSE, EFFICIENCY OF PROCESS AND PREVENTIVE EVOLUTIONARY SUSTAINABILITY OF SUCCESS, EMOTIONAL AWARENESS💪☺️🇵🇦

I am a little dissapointed that Amy (YALE Master) is basing Management Decisions on the Contribution Margin …stating that it‘s a „LEADER‘s“ reference „Key Performance Indicator“. -> It‘s TRUE on the level of a „Key Account Manager“ or „Sales Manager“, but -> ANY leadership level ABOVE this „Sales“ level (e.g. „Business Unit Manager“ or „Sales Director“) will ALWAYS be held responsible for -> EbiT! ..starting in the „Offering Phase“ (with CBD Cost Break Down in the Initial Calculation for Price Submission) WHY? EBIT = Revenue of Sales./.Operating Expenses Where „operating expenses“ exclude interest and taxes, but include things like: -> COGS: Cost of Goods Sold -> SG&A: Selling, General & Administrative Expenses -> D&A: Depreciation & Amortization Henceforth: The „LEADER“-Level of a Sales Department M U S T make sure, that: -> not only the the CM Contribution Margin (on the Customer side) -> but ALSO the COGS, SG&A and D&A (referring to the „internal side“ of sales) are managed properly/sustainably in line with the CBD provided in the initial price calculation. Call your professors at YALE …they‘ll confirm😂