How would you approach a profitability and process improvement assessment?

Question

Is there a typical consulting approach to these kinds of assessments? I'm having a hard time structuring a MECE approach that looks at both profitability and operational processes. I used a profitability tree to determine whether to look into revenue or costs and then used the root cause there to narrow what processes I should look at. Is that logical?

Answer 1

I agree with Vlad that knowing more about the case would be benefitial. However: Have you considered starting with a profitability tree and then splitting the costs not into fixed costs and variable costs, but into costs associated with the individual steps of the process you're supposed to optimize?

Answer 2

Hi,

Could you pls provide an example of the case?

If it's a profitability issue, how do you know in advance that you have a process problem? And if it's a process problem, why do you need profitability?

Best