Consulting AIOSDecision intelligence
Executive memo
Margin recovery decision brief
Clear analysis, practical choices and evidence-aware recommendations for confident decision-making.
Executive recommendation
Run a four-week pricing and delivery pilot before adding capacity. Growth is healthy; the way it is delivered needs attention.
Evidence captured
Northstar Field Services is a fictional business. These figures were invented for this example.
| Measure | Prior quarter | Current quarter | Implication |
|---|---|---|---|
| Revenue | $1.00m | $1.18m | Demand is growing 18% |
| Contribution margin | 34% | 28% | Six points of margin lost |
| Rework hours / job | 1.2 | 2.1 | Delivery effort needs testing |
Decision context
Protect a 30% contribution-margin floor. Test discount approval and a standard handover checklist in one delivery team, then expand only if both margin and customer retention hold.
Options considered
| Option | Benefit | Risk | Decision |
|---|---|---|---|
| Add capacity now | Relieve immediate pressure | Scale avoidable rework | Hold |
| Raise every price | Fast margin improvement | Lose price-sensitive customers | Test selectively |
| Fix the delivery mix | Improve margin with less disruption | Requires operating discipline | Pilot first |
Recommended next steps
- Operations lead: baseline rework and cycle time by job type in week one.
- Finance lead: calculate contribution margin after discounts and delivery effort.
- Commercial lead: pilot approval for discounts above 10% in weeks two and three.
- Executive sponsor: decide in week four using the agreed measures.
Key assumptions and risks
If the pilot protects margin but retention drops by more than two points, adjust pricing and repeat. If rework remains high, redesign the handover before hiring.