Operational Leverage

The degree to which an organization’s revenue can grow without a proportional increase in operational...

Operational Leverage

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.