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By T. H. Croft Moody

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Additional info for A Complete Refutation Of Astrology: Consisting Principally Of A Series Of Letters, Which Appeared In The Cheltenham Chronicle, In Reply To The Arguments Of Lieutenant Morrison And Others (1838)

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You try to sell lots of new and different stuff to new and different customers in new and different markets and maybe, if you are lucky, the top line—sales revenue—goes up. But the bottom line almost never does. It goes down and then, soon after, so does the top line—when the past winners finally die off and today’s winners begin to falter. In this book, I will describe how to recognize, contain, control, count, and manage complexity. Throughout the book, but especially in Part 2, “The Examples,” I will describe how others have capitalized on complexity for competitive advantage or how some companies have chosen to eliminate complexity to make room for the new, the exciting, the future successes.

The rest is expected from the many new products and new customers the company has added in the past few months as part of its growth initiative. Deductions Are Up, Too The next two lines, “claims and deductions” and “other customer charges,” are up too, and that’s not so good. It seems that some of the new customers are taking unwarranted deductions and some of the older ones are making claims because of errors made by sales or distribution. Some are misunderstandings on the new “hot deals” used to get the price increase accepted—and others are caused by errors of the overworked people trying to get all the last-minute orders (especially the new ones) out at the end of the quarter.

It seems that all the sales growth and any profits expected from it have been eaten up by the complexity we added. Worst of all, the costs and margins looked good at first. ” As the group files out of the conference room in a stunned silence, the seasoned assistant to the young CFO rests her hand on his arm and quietly says, “My, what a shame . . ” What a Shame, Indeed All the expected increase in profit from the sizable growth in sales revenue is gone, eaten up by unplanned, unexpected, and largely hidden costs—until the month-end and quarter-end statements were compiled.

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