Eric Siu explains how Monthly Business Reviews and three metrics—revenue per teammate, profit per teammate, and profit per department—helped his company flatten revenue while pushing profit margins from 1-2% to 11%. The system treats each hire as a capital investment that must show measurable returns.
Most companies are now looking at return on capital across their hiring. Who really do we need to actually run the business? We have this thing called MBR, Monthly Business Review, and one of the things you can look at is like revenue per teammate or profit per teammate and then profit per department. So you can look at your return on capital across these different groups. And it's been crazy because our revenue is actually almost flat year over year, but our profitability went from like 2%, 1.5% to like 11%.
