revenue. Over the last 30 years, revenue growth has averaged ~4%, and we pretty much grow 4-8% every year, except in years where a recession impacts our business, or in years where my predecessors tried to increase revenue by reducing prices. This year we put an annual plan in place to drive 4% revenue growth. Expenses are also projected to grow 4%. My business unit operates at a loss, but we keep it running anyway… as a loss leader for our other businesses. I decided to change things up this year and cut prices. Unit sales increased and were exactly on plan this year, but my revenue was flat. I missed plan on revenue, and my net loss (“deficit” if you will) increased due to the increase in expenses not being covered by the planned increase in revenue. The board tried to take me to task for the price decrease causing a shortfall in revenue vs. plan, but I corrected them and told them that a) you can’t compare my revenue to a “theoretical revenue projection” and b) since my revenue didn’t actually go down year-over-year, you can’t blame the price decrease for the increase in my net loss year-over-year. It’s just math. I learned this from a fellow student while at McIntire.

BTW, can anyone recommend a good headhunter?