Contribution margin should inform what you sell next

Revenue growth can conceal a shift toward work that is harder to deliver profitably. A firm may win larger projects while consuming more scarce expertise, carrying more risk and leaving less room for development.

Review contribution by service and client type using a consistent approach to direct costs. Include delivery labour, subcontractors and other costs that change with the work. Keep broad overhead allocation separate so it does not obscure the underlying comparison.

Look beyond the average. A service may be profitable when scoped narrowly and poor when sold as an open-ended transformation. The useful lesson may concern packaging and qualification rather than abandoning the category.

Include commercial effort. A project requiring months of bespoke proposals can be less attractive than a smaller engagement that buyers understand quickly. Track that effort without assuming every relationship-building activity belongs to a single deal.

Consider strategic value explicitly. A new service may justify a temporary investment if the firm is learning something reusable. Set a review point and evidence of progress. Otherwise "strategic" becomes a permanent exemption from commercial discipline.

The next sales priority should reflect what the firm can deliver well and sustainably. Chasing the largest available contract is not always the strongest route to a healthier business, especially when that contract occupies the people needed to build the next capability.