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Case Study

The financial losses that can occur due to 'systems slippage' is often not obvious - this is the 'iceberg' phenomena - where the 'wastage' is not visible, and only on deeper inspection ('diving below the water surface') does it come into focus.

This case study, based upon a real client experience, shows what is a fairly common story for fast growing medium sized businesses, where 'systems slippage' occurs due to a lack of systems development or process improvement.

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Action: Reflect on the above material, and ponder the following questions:

1. How has your business ratio been trending over the past two years?
2. Why has it been trending as it has?
3. What initiative can be taken to deal with systems slippage to improve the GP%?