Yesterday I fascilitated a partner meeting. Two partners got in a knock down all out verbal brawl about whether the tax department was more profitable than the CFO service department. What really blew my mind was that their comparisons and their arguments were actually based on their departments revenue numbers which in my mind are completely irrelevant. Profit is what matters. I dont care about your revenue numbers. Thats not what fills my bank account. Profit is what really counts. Profit is how we grow. profit is how we improve lives.
So actually, it was a battel of the egos. Who brings in more money so who is more powerful and valuable to the firm.
Horrible and useless conversation. I had to shut it down and trake everyone on a walk.
Let’s focus on your profitability please, set our egos aside from that top line revenue.
So you even know your profitability by service line? If you dont, then TODAY is the day to figure that out. Do not sell one more service without understanding its effect on the bottom line.