A customer problem looked ignored, but the manager was solving more than the owner could see. Clear delegation separates today’s recovery from tomorrow’s system improvement.
When sales slow, current expense can outrun the Throughput available to support it. Use expected Throughput and target profit to define affordable operating expense, then reduce cost without damaging flow.
EBITDA can improve while payroll pressure and cash constraints get worse. Rick Phelps explains which financial measure should lead in survival, growth, and sale or refinancing decisions.