Home

Complexity kills profitability

A known fact that is often difficult to quantify and manage.

Product variety may generate revenue growth BUT at what point does portfolio complexity kill profitability ? With an undercurrent of cost inflation, supply chain challenges and margin erosion, without the right approach this can significantly impact a business’s focus and margin performance.

True Profitability is a powerful 80/20 based methodology that has been updated for the digital age. Originally created by John Nichols, the CEO of ITW in the 90s, and then adopted by the Berkshire Hathaway group and many other successful businesses to increase profitability sustainably.

True Profitability = 80/20 2.0!

A dedicated focus where it counts.

handshake

APPROACH

There are a few key principles that help frame the approach

Focus your effort on the customers, products and processes that create most value

Balance the need for variety to attract and retain customers with the understanding of its true cost & complexity

Understand and model the impact of indirect costs on profitability. Ignoring the hidden burden or smearing them across your portfolio hides big issues that have a massive impact on performance and the bottom line

True Profitability builds on the 80/20 approach to provide greater:

recommend

Depth of insight
Using cloud based analytics to identify very specific and granular opportunities, whilst rolling up to a summary level to enable digital Cost-to-Serve and scenario modelling

recommend

Action orientation
Building analytics and visualisations that are modern & user-friendly, more people can be engaged, drive transformation and be accountable. Further reinforced by linking the insights to actions on a delivery tracker

recommend

Repeatability
Weekly or monthly data feeds can be processed seamlessly ensuring that True Profitability is both up-to-date and accessible.

recommend

Adaptability
As the low hanging fruit improvements are adopted, True Profitability enables you to drill deeper into portfolio simplification and modularity; as well as transforming operational footprint

menu_book

BENEFITS

True Profitability has emerged as the next generation performance improvement approach

80/20 proponents like Pedro Ferro and others have combined their insight with the advanced analytics capability of AlignAlytics to truly bring value through data. By digitalizing, the approach becomes more rapidly accessible and sustainable in delivering improvement.

People find that once you adopt 80/20, it’s hard to run a company any other way. You can’t unknow it!

handshake

FREE CONSULTATION

GO TO ALIGN-ALYTICS

True Profitability

Unlocks compelling insights and focuses action to improve performance and profitability

Complexity kills profitability

A known fact that is often difficult to quantify and manage.

Product variety may generate revenue growth BUT at what point does portfolio complexity kill profitability ? With an undercurrent of cost inflation, supply chain challenges and margin erosion, without the right approach this can significantly impact a business’s focus and margin performance.

True Profitability is a powerful 80/20 based methodology that has been updated for the digital age. Originally created by John Nichols, the CEO of ITW in the 90s, and then adopted by the Berkshire Hathaway group and many other successful businesses to increase profitability sustainably.

True Profitability = 80/20 2.0!

A dedicated focus where it counts.

There are a few key principles that help frame the approach

True Profitability builds on the 80/20 approach to provide greater:

True Profitability has emerged as the next generation performance improvement approach

Interested in improving performance and profitability? Get in touch to find out more about True Profitability or book a free consultation.