The Profit Leak Blog

Walk into any 250-person company in the country. Pull the P&L. The largest line items will be people: payroll, benefits, payroll taxes. Roughly $25M at average compensation. Now ask the CFO: "What's our second-largest people cost?" They'll cite recruiting, retention, training, technology. They will not cite the answer that matters most: $7.5M leaking out of how teams work together. "If you don't have a crisis, make one. You get people excited, motivated, and drive the necessa

Every leader believes they’re doing a good job. Most of them are right — partially. But there’s a gap between what leaders think is happening on their teams and what their teams actually experience. And that gap has a cost. At SKOR, we measure this gap directly. Leaders and Individual Contributors answer matched questions about the same team dynamics — recognition, goals, feedback quality, communication, accountability. When we compare the answers, the pattern is remarkably c

How a 1-800-GOT-JUNK franchise found — and fixed — the blind spot engagement surveys missed. Drew Trautman is the kind of leader who pays attention. As president of Lions Environmental Services, a 1-800-GOT-JUNK franchise based in Northern New Jersey, he’d invested in his team, built a strong culture, and ran engagement surveys twice a year through the franchisor. But something wasn’t adding up. "We realized we were trying to solve the problem by doing more of the same stuff.

Every company has a line item for compensation. For benefits. For office leases, software licenses, travel budgets, and coffee subscriptions. But there’s a cost that dwarfs most of those line items and appears nowhere on the P&L: The profit leaking from how teams work together.