Profitability Analytics Center of Excellence Case Studies
Raef Lawson
Executive Director, Profitability Analytics Center of Excellence PhD, CPA, CMA, CSCA, FCMA, CAE
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If you are looking for more detailed case studies, please refer to the Case Studies section of the PACE website - free for all members. We have had a few companies work with us to provide case studies (noted where applicable).
Below are 7 case studies, some use pseudonyms, and there are many more on our website.
If you have questions on any of them, please contact me.
Mostlé SA
After implementing a more detailed costing system, food producer Mostlé SA Chief Executive Ada Schmidt made an unexpected and alarming discovery: her company was producing 130,000 variations of its various brands, and 30% weren’t making money. The information provided by the new costing system led to major changes in strategic direction.
Insure - IT - Thank you to CostPerform for providing this case study
The annual strategic board meeting of Insure-IT had just concluded.
The Board adopted the core goal for Insure-IT of being the best-in- class general insurance company in Europe in 2030.
Now what's the best way to go about it?
Parts Maker, Inc.
Parts Maker, Inc. is a mid-sized manufacturer of automotive components. Its $24 million annual sales were split evenly among three product types: fuel doors assemblies, roof racks and structural stampings. The company had been losing money for a half-dozen years with losses reaching an all-time high of $0.5 million. The company's traditional costing system showed each of the three types of products? generating annual losses of between $130 thousand and $200 thousand. After creating a managerial costing model that more closely reflected the operation of the business, it because apparent that two of the businesses were generating while the third was losing a massive amount of money. Based on the new information, operational changes were made and the company was restored to profitability.
Telco - Thank you to CostPerform for providing this case study
领英推荐
Telco Ltd is a telecommunications operator providing fixed and mobile services. In common with other companies in the industry, its margins are under pressure while, at the same time, it must commit to making significant investments in new technologies (fiber access, 5G) and improved customer service levels.
Internet Connectivity Services - Thank you to DISTINCT Capital Partners Inc. for providing this case study
This case study examines a familiar scenario: An innovative strategy to capture new markets is conceived and implemented, investments are made, and operation experience is gained. Here a mid-sized North American Communications firm expanded its fiber network to provide Internet Protocol Connectivity (IPC) Services in order to drive profitability and support future growth. A detailed analysis of the? program highlighted the importance of holistically considering the impact of business decisions on the company's revenues, costs, and investments, resulting in actions that significantly improved revenue and increased the program's payback.
LePetomane Gas
LePetomane Gas is a distributor of welding and other industrial gasses. Management was concerned that their costing system did not provide an accurate measure of customer profitability and the information necessary to effectively manage revenue. This case describes the development of a costing system that provided such information, and its impact on the company's operations and profits.
Bank LTD - Thank you to CostPerform for providing this case study
Bank Ltd is a multinational bank providing corporate, investment, and retail banking services. As the bank provides a large number of products in diverse product lines, the bank wanted to investigate the profitability of each product, customer, channel, and location.
We are so pleased to be able to provide free, thought provoking content on the latest developments in finance and accounting.
If you want to see more PACE content, please check out our?LinkedIn PACE Channel?,?website?,?Twitter account?, and Podcasts on?Spotify,?Google?,?Apple Podcasts?and?YouTube.?Also, check out some of our eBooks on:
The Profitability Analytics Center of Excellence (PACE) is a?non-profit community of volunteer professionals?dedicated to helping organizations make better, more informed business decisions through the use of data analytics employing integrated, causal models.?Focusing exclusively on how to enable better managerial decision-making within organizations through the use of such models, PACE is the go-to source for people looking for independent and impartial (vendor and methodology neutral) information in this area. You will find many supporting articles, eBooks, blogs, and podcasts at?www.profitability-analytics.org?.?Consider becoming a member today. There is no cost.
Always looking for volunteers to help us grow.
#casestudies #podcasts #eBooks #profitabilityanalytics
Founder and CEO: Analytics-Based Performance Management LLC; Expert in ABC, EPM/CPM, Profit Analysis, Budget, Analytics
1 年Thanks Raef for your PACE Newsletter above. All useful and relevant ... especially for those interested in improving their organization's operational and financial performance.
Chief Financial Officer | VP Finance | M&A | Integration & Synergy | Global Business Management | Intercultural Management | Business Strategy | Operational Efficiency | International | Automotive
1 年Excellent newsletter Raef Lawson. Among other, the Part Maker case is again a good example which is highlighting that if you want to have ??skin in the game??, you need to continuously challenge the Status Quo (In this case the costing model) up to the moment you understand the underlying (under)performance.#Finance #NopainNogain ??
Founder and CEO: Analytics-Based Performance Management LLC; Expert in ABC, EPM/CPM, Profit Analysis, Budget, Analytics
1 年These are excellent and useful materials from PACE to learn from about how to improve an organization's operational and financial performance.
Educator, Author, Consultant
1 年These case studies are a great way to understand some of the specifics that PACE is developing and promoting in profitability analytics!
A great set of case studies that show how effective, causality-based modeling and profitability analytics can be used to improve financial performance in a variety of industries.?Principles are universal.?Adoption methods, on the other hand, must be crafted to fit an organization’s unique circumstances. ?Applying principles in unlike circumstances is the way to “master” those principles and case studies are great way to move along that learning curve efficiently.??