Many companies destroy 2-4 times their profit without even knowing it. Experience has shown that the top 20% of customers generate well over 300% of the profit while the bottome 20% typically destroy 200%, leaving 60% of the customer base having no significant impact on the bottom line.
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Every dollar a business spends is an investment seeking a return. When companies have the capability to review their costs as a portfolio of investments in strategy, they can quickly impact performance and maneuver to a better competitive position.
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Expenses are the most controllable part of the profit equation. Companies that can model and predict the causel drivers of costs in their organization have the necessary transparency and visibility to quickly identify areas for cost and profitability improvement.
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