productivity... managing the drivers of change
Selling prices, resource costs and product or service mix represent some of the drivers of business activity but we need to move further forward in our understanding and control of other drivers such as capacity and efficiency.
Capacity represents the tangible, intangible and human assets directly associated with revenue generation.
Efficiency represents the processes used in the daily creation of revenue and/or task management.
Once exposed to these measures, owner-managers discover that changes to capacity occur with great risk, while changes in efficiency offer better returns with comparatively fewer risks.
The 14-box matrix shown above identifies drivers which can be measured, monitored and managed using existing accounting data... by doing so, owner-managers and senior managers can better understand how their decisions impact bottom-line performance.
Contact us if you'd like to know more...
' You can't go back and change the beginning, but you can start where you are and change the ending.' C.S. Lewis
Robert W (Bob) Finlay CMA(Au), FCBA, RPA
32 Pogson Drive, Whitby, ON L1R 2H9
r walter finlay and associates
Certified Management Accountants, Business Consultants