In our e-book, Compass, we examine the impact that developing a leverage model may have on maturing, professional services businesses. Certainly, moving to a more leveraged organizational and business model requires a good deal of planning and preparation. It is an investment that you should take seriously, as you should with any other investment that you might make.

Often, business leaders may find developing a leverage model to be quite the daunting task. But what is the opportunity cost of not developing a leveraged organization as you grow? As detailed in Compass, profitability is typically evaluated as the primary benchmark – what else should be considered? Here are a few things to think about:

• Where is your next “generation” of leaders going to come from?
• How much are you spending to recruit senior consultants?
• Are you avoiding operational / process definition?
• Are your costs per role/title continuing to increase while your bill rates stay relatively flat?
• Are you providing career growth and/or management opportunities within your organization?
• Will your organizational model scale with growth?
• Could you use an infusion of energy and passion?

In the answer to these questions can be found key data points that inform whether your organization should consider the development and deployment of a leverage model. Looking beyond the profitability metric, consider the impact that building a leverage model will have on your organization’s ability to maximize growth potential.