The seven leak categories
Profit leakage typically clusters in seven areas: scope creep, underpricing, unbilled time, rework costs, protocol drift, unclear ownership, and delayed billing.
Audit flow
- Gather project financials and time data.
- Compare estimates to actuals by phase.
- Attribute variance to root causes and owners.
- Prioritize fixes by profit impact.
- Establish a quarterly audit cadence.
Outcomes to target
- Improved pricing discipline
- Reduced rework and delivery variance
- Faster cash conversion cycles
Next step
Use the Profit Leak Audit Template to run the analysis consistently.