You need accurate information and insight to determine what aspects of your business are performing well or are under performing. In order to improve the long term economic profitability of your business, you need to fully comprehend the costs associated with delivering your products and services. PerformOne Consulting can help you to determine these costs.
PerformOne offers solutions that incorporate Activity-Based methodology and provide performance analytics at the activity and process level. Additionally, our solutions also include analytics on profitability or cost recovery across products, services, customers, channels, business units and divisions.
Understanding True Profitability
Through better information of product and client profitability, Activity-Based Costing and Management (ABC/M) improves decision-making. It allows managers to:
- better allocate scarce resources
- understand and improve enterprise-wide processes
- break through silos
- align costs to products and services, increasing cost visibility and manageability
- shift to results-based reporting
- understand and act on Shared Services costs and performance
Activity-Based Costing and Management is the foundation for better understanding the "true" profitability of products and services, and for identifying improvement initiatives. By matching costs more closely with the activities and processes that trigger them, you will have the power to effectively manage costs, improve process, positively impact profitability and enhance decision-making.
Why is it Important?
ABC/M is ideal for multiple product, multiple service, and multiple client organizations who are suffering from incorrect costing information. Traditional cost allocation methods allocate overheads by arbitrary allocations of indirect costs which are often wrong. ABC/M minimizes these distortions in your costing.
Unlike traditional allocation methods which cannot be linked tied to specific outputs, ABC/M helps identify indirect costs and identifies pockets of process efficiencies. It makes you more competitive by measuring product and client profitability with higher accuracy and helping determine the cost-effectiveness of activities and processes.
ABC/M is for Organizations of all Sizes, Industries and Sectors.
Contrary to popular belief, ABC/M is not just for the Fortune 500, as its principles and effects are the same for smaller organizations. It provides a clear metrics for improvement, and encourages management teams of all sizes to discover opportunities to improve their business process effectiveness.
By helping managers identify their value-added activities - those that will best accomplish a mission, deliver a service or meet a customer demand - ABC/M improves decision-making with better information and eliminates waste by encouraging employees to look at all costs. The essential part of any ABC/M endeavor is to get a clear picture of the activities and processes that the entire organization performs. When employees understand the activities they perform, they can then better understand the costs involved.
In addition we have vertical and robust solutions that span manufacturing, distribution, banking (Vantage Point), public sector and service sector. Call us so that we can show you how we can reduce time to market for your needs at a cost lower than any other global vendor of services and software.
In addition to providing thought leadership in area of profitability analytics, we have developed these costing solutions:
Contact us to learn more about our unique approach to Profitability Analytics.
See our case studies for some real world examples of our approach.