How would you approach a profitability and process improvement assessment?

Anonymous A asked on Jul 24, 2019 - 2 answers

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?

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Alexander updated his answer on Jul 25, 2019

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?

(edited)

Vlad
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replied on Jul 24, 2019
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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?

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