Diagnostic examples

The visible activity and the business result are often connected by a mechanism nobody is managing explicitly.

Seven anonymised patterns from real business situations. Some start in commercial flow, others in management visibility or handover. The point is the mechanism, not the company name or software.

The pattern

A healthy number in one part of the business can hide deterioration somewhere else.

Revenue can look strong while the promise makes the customer expensive to serve. A product can look viable before packaging and logistics. Headcount can rise because people are compensating for an information gap.

I use these examples as diagnostic patterns, not universal explanations. The mechanism still has to be supported by the evidence available in that business.

01 · Commercial economics

The sale, customer or product can look better upstream than it does after delivery.

The commercial record often stops before the operational cost becomes visible.

01
Commercial promise → cost-to-serve

High revenue did not mean a valuable customer.

An equipment and service business could see revenue by customer, but not the full operational consequences of what had been sold. Some customers had been promised service conditions that the delivery model could not consistently meet as sold.

Delivery compensated through additional visits and exception work. The customers still looked important in turnover, while service effort, travel cost and delivery pressure were absorbing much of the economics.

VisibleRevenue by customer and commercial activity
MechanismCommercial promises created repeated delivery exceptions and additional visits
ConsequenceDelivery overload and higher cost-to-serve eroded margin on relationships that looked strong by revenue
TraceCustomer → promise → delivery exception → visits → cost-to-serve → margin
02
SKU economics

The product had margin. The way it reached the customer did not.

In the same business, some SKUs created unusually high packaging and logistics costs because of the way they had to be handled and shipped.

Looked at only as product sales, they appeared commercially useful. Once the operational requirements around them were considered, some were absorbing most or all of the margin they appeared to create.

VisibleSKU sales and product revenue
MechanismSpecific packaging and logistics requirements created disproportionate fulfilment cost
ConsequenceProducts that appeared viable could contribute little economic value after fulfilment
TraceSKU → packaging requirement → logistics → fulfilment cost → realised margin
03
Marketing → Sales

Marketing activity could not be connected to commercially useful demand.

Marketing and Sales operated largely as separate systems of work. Marketing could report its own activity, but the route from spend and generated demand into sales outcomes was weak.

The business therefore struggled to distinguish marketing activity that created useful commercial demand from activity that consumed budget without producing enough downstream value.

VisibleMarketing spend, campaigns and lead activity
MechanismNo reliable connection from marketing activity into opportunity and commercial outcome
ConsequenceBudget could continue flowing into activity whose contribution the business could not establish
TraceMarketing spend → demand → opportunity → customer → economic result
02 · Operating model

Sometimes people and systems compensate for a missing connection until the workload becomes visible.

The information problem becomes an operating-cost problem.

04
Cross-system customer

One customer existed in several different systems.

A property business used its CRM for one part of the organisation, while property management and maintenance activity lived elsewhere. Sales could see one version of the relationship. Operations could see another.

Some parts of the managed portfolio required significantly more service effort and repair activity than others. Because that demand was not connected back to the commercial relationship, management could see the revenue but not which relationships were becoming more expensive to serve.

VisibleCRM relationship, managed properties and maintenance activity
MechanismCommercial and operational views of the same customer were not traceable end to end
ConsequenceRepair and service demand could erode relationship margin without making the cause visible to management
TraceCustomer → commercial relationship → managed property → service activity → repair cost → margin
05
People as the integration layer

Headcount was compensating for an information-flow problem.

A growing contracted-service not-for-profit had a largely unused CRM and a separate service-management environment. Management could not reliably trace activity from the contracting organisation through to the service users receiving the work.

Reporting and coordination increasingly depended on people manually reconstructing what had been delivered, to whom and against which contract. Staff were overloaded, deadlines were missed and several people left, while additional coordination capacity was being added around the gaps.

VisibleContracts, service activity and growing coordination workload
MechanismPeople manually bridged the missing contract-to-delivery information flow
ConsequenceOverhead and workload grew while delivery remained fragile; deadlines were missed and staff capacity was lost
TraceContract → commitment → delivery → service user → reporting → coordination load
03 · Market signal and constraint

More activity can make the wrong side of the system bigger.

Busy teams, more products or more demand do not automatically mean more economic output.

06
Product activity → market demand

Product teams were busy without a reliable customer signal.

A large service organisation had used Salesforce for more than a decade. Teams formally worked in the same environment, but Product and Sales did not share sufficiently consistent commercial definitions or customer signals.

Products could be developed with weak evidence of customer demand, then reach Sales in an immature form. Some products were weakly demanded or loss-making, while product capacity had already been spent creating them.

VisibleProduct activity, opportunities and sales forecasts
MechanismCustomer need was not translated into a shared signal between Product and Sales
ConsequenceCapacity was spent on offers with weak market pull, contributing to unstable forecasts and product losses
TraceCustomer need → market signal → product decision → offer → opportunity → revenue / loss
07
Demand → constrained supply

More clients could have created more work without creating more placements.

A recruitment business was considering reactivating its existing client base through email campaigns while recruiter workload was already high and the accessible candidate pool was under pressure.

The management question was not simply which dormant customers could be reactivated. If the constraint sat on candidate availability, generating more vacancies would increase delivery commitments without increasing the supply available to fulfil them.

VisibleCustomer base, vacancies and commercial activity
MechanismDemand could grow faster than candidate supply and recruiter capacity
ConsequenceMore vacancies could mean heavier sourcing workload, lower fill probability and weaker economics rather than more output
TraceCustomer → vacancy → candidate supply → recruiter effort → placement → revenue → margin

Management question: are we creating more economically fillable demand - or simply more work for a constrained delivery system?

The common pattern

Activity and economic result can diverge without any individual function obviously failing.

Sales can win the customer. Marketing can generate leads. Product can ship. Delivery can keep working. Headcount can increase. The business can still become less profitable or less reliable.

The diagnostic task is to identify the mechanism connecting those local outcomes to the business result - and to stop where the evidence stops.

Two places to start

Can management trace what happened between the action and the result?

If not, start with Revenue Visibility Review (£595). If the mismatch is visible but the cause still needs investigation, Commercial Diagnostic is £1,950. Both end with a written PDF.