Replace Dollar Targets with Margin-Based Goals

Analyze margins for each activity or product. For every major project, find (or estimate) your margins—what percentage of revenue is left after variable (and then all) costs.

Use break-even analysis before launching new initiatives. Calculate how many units or customers you need for a new effort to begin turning a profit. Test whether this is realistic with your current resources.

Compare margins over time and against peers. Rather than just looking at profit dollars, track margin changes quarter-to-quarter, and ask others in your field what typical margins look like.

Reframe decisions using trade-off language. Instead of 'Should we increase sales?', ask 'Will increasing sales at this margin rate actually improve our sustainability and reduce risk?'