Eric Galuppo Highlights Structural Growth Risk Facing Service Companies

LOS ANGELES - EntSun -- As labor volatility continues to challenge service-based organizations, Eric Galuppo, founder of VAMO Digital, is drawing attention to a structural issue many business leaders overlook: growth that outpaces operational alignment.

According to Galuppo, many mid-market service companies experience a disconnect between top-line performance and bottom-line results — not because demand is weak, but because internal systems absorb instability inefficiently.

"Revenue tells you that demand exists," Galuppo explains. "It doesn't tell you whether your organization can absorb that demand without distorting labor, eroding margin, or destabilizing operations."

Growth Is No Longer the Same as Stability

Galuppo notes that traditional growth models treated sales expansion as a solution to operational pressure. In today's labor environment, that assumption no longer holds.

Across labor-heavy sectors such as private security, logistics, hospitality, healthcare support, and home-based services, organizations report rising overtime exposure, supervisor backfill, and early-tenure turnover — even during revenue growth.

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"This is the classic growth illusion," Galuppo says. "Volume doesn't create new problems. It exposes the weaknesses you already had."

Why Payroll and KPIs Often Miss the Problem

One reason instability persists, Galuppo explains, is that most leadership dashboards measure departments in isolation rather than workflows as a system.

Sales tracks bookings.
HR tracks hiring and attrition.
Operations tracks coverage and utilization.

What's missing is visibility into how these functions interact under pressure.

"There's no dashboard for instability — until it's everywhere," Galuppo notes. "By the time it shows up in financial results, it's usually been present operationally for months."

Systems, Not Tools, Are Becoming the Differentiator

Galuppo emphasizes that adding more software rarely solves instability when decision flows remain fragmented. Instead, organizations that outperform focus on alignment — ensuring demand generation, workforce capacity, and service delivery move together.

"Big companies don't lack resources," Galuppo explains. "They lack integration. Growth decisions are made in isolation, then stitched together through effort instead of structure."

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Why Smaller Firms Are Gaining an Edge

Galuppo observes that smaller and mid-market firms may be better positioned to adapt. With fewer layers and less legacy complexity, these organizations can redesign how signals move across the business before instability hardens.

About Eric Galuppo

Eric Galuppo is a Systems Architect and the founder of VAMO Digital, a growth systems firm specializing in labor-heavy service organizations. His work focuses on reducing workforce instability, increasing cross-functional visibility, and aligning demand with execution so companies can scale without eroding margins.
https://ericgaluppo.com

About VAMO Digital

VAMO Digital designs integrated growth systems for service companies operating in complex labor environments, aligning sales, hiring, and operations into a single coordinated system to improve predictability and operational resilience.
https://vamodigital.com