Inn8ly

Preparing for our first update. This includes a review of their financial performance – the overview, which reviews financials they already generally know, and some analyses from the profit model, which is already telling us things the client doesn’t really know, such as at least 50% of their customers are either unprofitable or only marginally […]

Delivered the first update – we’re slowly gaining respect from client management as they can see we’re providing information about their business they haven’t had before. We’re now on to our next step – to demonstrate that greater rigor and transparency in pricing and financials will improve profits.

There are a few major deliverables that we’ll need to hit during the delivery phase. In addition to turning the assessment-grade model into implementation-grade, we’ll also be building a profitability model for another piece of the business. We begin by meeting with a series of subject matter experts on the client side to get a […]

The workstream manager reviews the findings from the first stage of the project. He’s already built out an assessment-grade profitability model for one piece of the business. It’s built in Access, but can be manipulated for greater visibility using Excel pivot tables. One of the tenants of profitability modeling: creating a fully-loaded P&L for each […]

Another round of validation/revision with the client. As people begin to utilize the model to perform profitability analysis on their own customers/sites/terminals, it brings to light other tweaks that need to be made.

One of the most intensely debated areas is the methodology by which overhead costs are allocated down the transaction level. Our assessment-grade models primarily utilized transaction/volume based allocation rules; something that the client was not entirely sold on. This week, we incorporate the work of the Accunomics team focused on OPEX reduction. They provide us […]

We meet individually with each member of the validation team to gather feedback. Each team member represents a different business area and provides specific insight into the minutia of his or her operations. We learn of more one-off adjustments that we’ll need to make in order to improve the accuracy of the model.

It’s time for our kick-off meeting with the validation team. After reviewing the profitability modeling process with everyone, we begin to demonstrate the capabilities of the model. The client seems impressed at the detailed visibility that the model provides. They’re able to select specific sites, customers and products and view the associated P&L right down […]

After we’ve built out an initial cut of the model, it’s time to focus on client input and validation. This will involve socializing the profitability model with key stakeholders on the client team, collecting feedback and revising the model accordingly.

One of the more challenging pieces of profitably modeling involves investigating variances and gaps between the transactional data and the reported P&L figures. Generally, if the variance exceeds 1%, we’ll look into what’s driving the difference. This week, the focus is on revising our model to account for these variances.