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Multi-site professional services firm · 240 people · 6 offices

Concentration read that lifted a services firm from 31% to 39% gross margin

An 80/20 read across clients, services, and initiatives let the firm exit 22% of revenue and raise margin without adding people.

Disciplines deployed
SIMPLIFY → GROW
Measurement window
18 months
Measures reported
4

Condition 02 of eight

Complexity is consuming capacity

Busy everywhere, moving nowhere. The vital few are funded at the same rate as the trivial many.

All eight conditions

Present reality

Revenue was growing while margin stayed flat. Five initiatives ran concurrently, none finishing, and the firm could not say which clients or services actually created value.

Constraint

No contribution view existed below the revenue line, so partners had no defensible basis to decline work — and capacity was allocated to whoever asked first.

Intervention — architecture installed

80/20 concentration read across clients, services, and initiatives; portfolio exit plan; capacity reallocated to the highest-contribution work.

FOUNDATION → SIMPLIFY → LEAD → GROW

Mapped to the operating system

What was architected inside each discipline, and the measured consequence. Disciplines held out of scope are shown with the reason — nothing is implied by omission.

  1. 1. FOUNDATION

    Build

    Held out of scope

    Structure and decision rights were already sound; the constraint sat in what the firm chose to do, not in who could decide.

    Result: No structural change was required, which is why the engagement began at SIMPLIFY.

    FOUNDATION
  2. 2. SIMPLIFY

    Focus

    Loaded in this engagement

    An 80/20 concentration read across clients, services and initiatives, with a contribution view built below the revenue line.

    Result: Active firm-wide initiatives cut from 5 to 2; 22% of revenue deliberately exited.

    SIMPLIFY
  3. 3. LEAD

    Execute

    Held out of scope

    Deliberately deferred: the partners already held a working cadence, and adding one before the portfolio narrowed would have institutionalized the wrong work.

    Result: The existing partner meeting absorbed the initiative gate without a new forum.

    LEAD
  4. 4. GROW

    Scale

    Loaded in this engagement

    Capacity reallocated to the highest-contribution accounts and services; qualification criteria written for new work.

    Result: Gross margin 31% → 39% (+8 pts); revenue per professional +25%, with no headcount added.

    GROW

ARC™ — the renewal loop around all four

Partners re-run the concentration read every planning cycle and re-gate the initiative list against it.

ARC™ →

Measured result — what moved, and by how much

Multi-site professional services firm · 240 people · 6 offices — measured change over 18 months
MeasureBeforeAfter (18 months)Change
Gross margin31%39%+8 pts
Revenue concentration in top-quartile accounts44%71%+27 pts
Active firm-wide initiatives52−3
Revenue per professional$186K$233K+25%
Before → after, measure by measure · 18 months
  • Gross margin

    +8 pts

    Before31%
    After39%

    Standardized against Gross margin Trailing twelve months, same cost-of-sales definition.

  • Revenue concentration in top-quartile accounts

    +27 pts

    Before44%
    After71%

    Standardized against Revenue concentration Top quartile by contribution, defined once and held.

  • Active firm-wide initiatives

    −60%

    Before5
    After2

    Standardized against Concurrent enterprise initiatives Counted from the firm portfolio record.

  • Revenue per professional

    +25%

    Before$186K
    After$233K

    Standardized against Revenue per employee Billable FTE only, identical definition both readings.

22% of revenue was deliberately exited; margin and headcount productivity both rose without adding people.

Transfer — what the client now owns

Partners own the annual 80/20 concentration read and the initiative gate, and run both themselves each planning cycle.

Compass leaves business architects, not dependency.

Client identities, brands, and locations are withheld under confidentiality. Metrics are client-reported and measured over the window shown; they describe those engagements and are not a projection of results for any other enterprise.

Start with your own present reality

Every engagement above began with an honest read of the architecture already producing the results. Score yours, or schedule a conversation.

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