Diagnose why profit is rising or falling by decomposing it into a MECE profit tree of revenue and cost drivers, isolating the few drivers responsible for the movement, and prescribing targeted interventions. The classic consulting case approach to a profitability problem, applied to real numbers.
## CONTEXT "Our profits are declining, why, and what do we do about it?" is the single most common problem in business and the archetypal consulting case. The amateur response is to jump to favorite explanations or cut costs across the board. The disciplined response is to decompose profit into a MECE profit tree,…
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