The Underlying Question
The Founder and CEO of a growing software company faced a frustrating paradox. His team was at full capacity, delivering more projects than ever, and revenue was climbing. Yet, this intense effort wasn't reflected on the bottom line. His experience pointed to a critical question: where was value being lost between the hard work and the final profit?
"The paradox was that while our workload was higher than ever, I felt the company was standing still. It’s not that I didn’t suspect why. What made the difference was the clarity and confidence we gained to finally take action."
Forging a Tool for Clarity
Our work began as a sales performance diagnostic, but the data quickly revealed a deeper issue: costing. Years of intuitive, 'back-of-the-envelope' estimates, once a strength, now obscured the true cost of servicing their projects. Our role wasn't just to highlight the problem; it was to deliver the solution. We built a custom costing and pricing tool, specifically designed for the unique complexity of their work.
The Decisive Result
Applying the new tool to the project portfolio provided immediate, stark clarity. It created an objective map that confirmed the Founder's suspicions: several resource-heavy projects were only marginally profitable. This empowered the leadership team to make a strategic pivot. They systematically renegotiated terms, disengaged from unprofitable projects, and—most importantly—began pricing all new work with a clear understanding of its true cost.
The result was a fundamental shift from 'growth at all costs' to sustainable, profitable growth