“And I know, the profit margin you designed into your price list, or your estimating system, is the same percent profit you report on your tax return at the end of the year,” I smiled.

Minor chuckling erupted.

“You know, some of you call me up. And tell me you are experiencing profit erosion, either gross profit, or net profit, and ask if I can help. So, I ask to see your organization chart.

“You protest. ‘It’s not our organization chart. It’s a pricing problem, or cost containment, waste or scrap.’

“No, I really do understand. If you experience profit erosion, something that your system was designed to prevent, then something is out of kilter with your system. Something in your system is broken. And one of the things I have discovered when I look for the cause of the problem, I try to figure out WHAT’S the problem. Turns out, the problem is seldom a WHAT. It’s almost always a WHO.”