MARTÍN GILSTRATEGY & INTELLIGENCE

MGS Executive Toolkit Collection · ET-019

Decision support tool

Margin Recovery Plan

Identify why margin is falling before price cuts or cost actions make the problem worse.

Diagnose the causes of margin erosion and prioritise recovery measures.

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Editable XLSX file compatible with Excel, Numbers and Google Sheets.

When to use itBefore committing resources or closing a difficult-to-reverse decision.
What to prepareVerifiable evidence, owners, limits and alternatives.
What you will obtainSeparate pricing, cost, mix and commercial-discipline problems.

What problem it helps solve

Diagnose the causes of margin erosion and prioritise recovery measures.

Questions to answer before deciding

  • Does price reflect value, service and actual cost?
  • Which discounts lack economic justification?
  • Which input cost can be renegotiated or substituted?
  • Which inefficiency is eroding margin?
  • Which products or customers distort average margin?

How the result is interpreted

The 0–100 result is calculated only from confirmed rows. Document completeness is shown separately so that a completed worksheet is not confused with a favourable decision.

What it does not replace

The tool structures a decision. It does not replace financial, legal, tax, technical or human review when specialist verification is required.

User guide

How to use the tool

1

Define the scope

Specify the decision or situation being assessed.

2

Record evidence

Use verifiable data and documents.

3

Score from 1 to 5

Use one consistent and justified scale.

4

Close with accountability

Assign a condition and owner before confirming a row.

Within the framework

Prioritise

This tool forms part of the MGS Strategic Intelligence Framework™ and should be interpreted together with evidence, limits and the review mechanism.

Further reading

  1. Porter, M. E. (1980). Competitive Strategy. Free Press.
  2. Porter, M. E. (1985). Competitive Advantage. Free Press.
  3. Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Free Press.
  4. Kaplan, R. S. y Norton, D. P. (1996). The Balanced Scorecard. Harvard Business School Press.
  5. Christensen, C. M. (1997). The Innovator’s Dilemma. Harvard Business School Press.

Review methodology criteria, scoring and limitations.

Next step

When the tool identifies material exposure

Convert material gaps into a decision question, a verifiable scope and an expected outcome.

Discuss the situationKnowledge Centre