Identify areas of profit leakage within the business through sophisticated analysis of your working data
When true customer, product and service profitability are understood, the variation in profit contribution can be understood.
PCM use transactional data and sophisticated cost allocation models to derive actual profit contribution at a transaction line item level of detail, in a way that reflects actual business operations. It is this information that enables areas of profit leakage to be identified – and associated behaviours, policies and work practices.
When benchmarked, the opportunities associated with profit leakage can be quantified and validated. Often, many subtle improvements can be made in particular areas that deliver significant profit uplifts.
Define Specific Profit Upsides
Once profit leakage points are identified, PCM find their root cause – that drive variations in profit contribution. More importantly, EBIT upsides that can be achieved by refinements to policies, work practices and daily business behaviours are highlighted.
Often, many small improvements – at an individual customer / client, product and service level – implemented across the business, on a regular basis, aggregate into significant profit uplift.
PCM have develop a host of applications that …
A Framework to Capture Upsides
Develop a framework, supported by action plans to capture profit upsides quickly, within the existing model
Opportunity means nothing until it is realised. PCM goes beyond traditional upside analysis and business reporting, to help deliver incremental EBIT – not just highlight it. We work collaboratively with management, sales and operational teams to put in place benefits realisation programs that gain traction and are sustainable in the long term.
There’s no hiding the fact that change can be difficult, but the incremental EBIT on offer is a powerful motivator.
PCM’s implementation framework breaks down large opportunities into small, achievable steps. Action plans for individuals within the business are defined, supported by real time reporting that tracks and validates EBIT captured.
Retain Profit Upsides
Create sustainable programs, tracking and support tolls that lock in profits over time
Many benefits realisation programs fail because of their short term focus and failure to achieve the behavioural change required. Unless a genuine culture of transparency and personal accountability can be instilled at all levels within the organisation, EBIT gains will not be sustainable.
Program understanding and buy-in are critical, prior to any program roll out. PCM works closely with client businesses to establish program momentum and traction in the longer term.
Cutting edge monitoring tools that measure upsides captured, drive personal accountability, highlight and share successful practices all feature in PCM’s implementation programs.