If you could pick one and only one ratio—profit per x (or, in the social sector, cash flow per x)—to systematically increase over time, what x would have the greatest and most sustainable impact on your economic engine? We learned this single question leads to profound insight into the inner workings of an organization’s economics …
Do you need to have a single denominator? No, but pushing for a single denominator tends to produce a better insight than letting yourself off the hook with three or four denominators. The denominator question serves as a mechanism to force deeper understanding of the key drivers in your economic engine.
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