Operational Leverage
The degree to which an organization’s revenue can grow without a proportional increase in operational...
The degree to which an organization’s revenue can grow without a proportional increase in operational costs. A highly operationally leveraged business can add revenue with minimal incremental operational investment. A poorly leveraged business must add operational capacity, people, systems, and processes every time revenue grows.
Building operational leverage is the primary strategic mandate of the operations function in scaling mid-market companies.
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