Industry:

Media Storage

Time Period:

6 months

Assignment:

Client’s monthly financials were done on time, but lacked penetration to show what drivers were responsible for the results. They could not identify revenues/costs breakdowns to know profitability drivers: on location and customer profitability, revenue per employee, revenue per cubic foot of space rented etc.

Story:

Interviews were conducted with Marketing, Operations and senior management to determine metrics needed to understand the business. Leading and lagging indicators were identified – quantitative and $$ values. Management accounting techniques were introduced to improve the information being produced currently. Metrics from Management accounting and Financial accounting were combined, to appear seamless to management.

Result:

Management decision making was enriched. Resource allocation improved. Business results improved when, over a period of 3 months – revenues increased 5% and profits by 12% due to the decisions based on the new management accounting information. A more in-depth monitoring ability was put in place permanently, that satisfied senior management’s need to manage the business.