Definition

Leveraging means use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.

Common Uses

- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.

Practical Example

- Example: Management applies **Averaging** when designing policies and monitoring performance against targets.

Why This Term Matters

- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.