> Deteriorating financial results

• Flat or declining sales volume.
• Erosion of profitability measures such as gross margin percentage or operating expense ratios.
• Lower than expected return on sales, a series of negative earnings surprises, or a decline in liquidity ratios.
• Problems with inventory turns, write downs, accounts receivable aging, or an increase in probable bad debts.
• A subtle yet growing awareness that the company is falling behind.

> A period of rapid growth and/or change

• Managing accelerated sales growth, product launches, multiple new sales reps, or acquisition challenges.
• Constantly changing business priorities, focus away from core business, or erratic financial results.
• Problems implementing a current business or marketing plan.
• Felt need to improve business systems or processes.
• Frustrated attempts to take the business to the next level.

> Market consolidation

• Slow or declining sales coupled with a sudden or steady loss of key accounts.
• Intense competition, increased margin pressure, or a decline in market share.
• A management team with traditional views and a reluctance to change.
• Pressure from suppliers, lack of support on key lines, or difficult contract negotiations.

> Declining productivity measures

• Increased returns & adjustments
• Decline in sales per employee, gross margin per employee, or sales to inventory ratio, etc.
• Service problems in order fulfillment, high error rates, late deliveries, damaged goods, etc.
• Warehouse inefficiencies in organization, overtime rates, access, pick and fill rates, losses, etc.
• Logistics problems in truck maintenance, driver overtime, downtime, scheduling & routing, etc.

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