Profit Optimization – A Focused Process That Digs Deep
BizDog’s Profit Optimization Program (POP) is a focused process that encompasses a financial and operational evaluation of your business, business units, activities, processes, customers and products / services.
The process involves interviews with executives and key team members, a key reporting and data inventory audit (identifies the key data that exists in your business, where it resides, and how it is gathered), a customized Current State Analysis and Future State Analysis business model, and a set of specific recommendations for improving your profit and financial performance.
We pride ourselves on the lucidity and practicality of our recommendations and the fact that we prioritize all of them so you can make great decisions about where to focus.
Our POP leverages a proven methodology, flexible tools and templates, and experience in industries as diverse as aviation, insurance, publishing, manufacturing, professional services, software, construction and real estate development.
What Value Do You Get?
- An in-depth financial and operational assessment of the key areas and drivers of your business;
- A granular view of the linkages between your current operational activities and your current financial performance;
- A flexible model that is used to identify multiple potential linkage pathways between operational outcomes and targeted financial results;
- Identification of the linkage between operational decisions/activities and cash generated or consumed;
- Identification of operational targets that will drive your strategic financial objectives;
- Specific, prioritized and focused recommendations giving you a clear view of what improvements are possible, how bit that potential is, and how quickly you can expect to see results;
- A specific methodology to help measure progress toward producing optimal results;
- In-person debrief of key findings and suggestions to you and your key management team;
- Identification of the best path for your business to operationalize your targeted financial results based on resources, risk profile, opportunities, and threats;
The Critical Linkage Between Operational and Financial Results
Most of our selected clients have great financial reporting (but certainly not all of them). And most of them run solid businesses from an operational perspective.
Our Profit Optimization Program leverages the data that is created by these two elements (operations and financial performance) analyzes them in an integrated way.
The real power if what happens after the analytics are done – when you can clearly see how changes in one of these “two sides” of your business affect, or should affect the other side.
Some Common Insights Provided by POP
Every business is different at the same time it is governed by the universal laws of “business physics”. It is the impact of “business physics” that gives our POP so much power, flexibility and valuable insight.
We have worked with and helped enough businesses in enough different industries that we are quite comfortable listing a few typical insights and benefits for our clients below:
- Realizing that relative profitability amongst customer segments has dramatically shifted;
- Understanding that a change in components of revenue composition has caused a change in cost structure and operational risk profile;
- Discovering operational inefficiencies have crept in that are “hidden” on the profit and loss statement;
- Clear line-of-sight into operational activity targets needed to drive financial performance in line with strategic and business plan;
- Illumination into simple and actionable ways to defend the business in a tough economy, or grow the business in the most efficient way when growth is called for;
- Uncovering pricing model is no longer reflective of the operational and market realities of the business;
- Realizing impact of disconnect between financial budget and operational and strategic plans;
- Understanding impact of unexpected scaling effects on overhead structure.