Turning challenges into opportunities

Improving on strategical, tactical and operational decisions will improve your performance. Our methodology supports a transparent flow focused model that drives cash flow and sustainable profitability improvement. Your decision making process should be based on relevant information, always understanding the bottom line impact of any decision. Your key challenges can be identified and turned into opportunities, driving improved profitability and cash flow.

Critical areas

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Challenges related to the Assortment

  • Pricing and profitability

  • Profitability analysis (product vs. process)

  • Cut the tail decisions

  • Implication of new products & capacity

  • Make or buy decisions

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Challenges related to planning, steering and follow up

  • Rolling forecasting

  • Financial simulation - how different choices change the likelihood  of different outcome

  • Financial implications of mid- and long term planning

  • Investment calculations and follow up

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Sustainable profitability improvement through sound decision making - The numbers game

In order to improve on productivity and profitability you need to make certain changes in your decision making process. You need to develop a solid model with relevant information that drive real end-to-end performance and cash flow. We help you to analyze, re-think and implement a new way of working, and to avoid silos and sub-optimization.

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Management accounting

Why does traditional management accounting fail in supporting continuous profitability improvement?

  • The purpose of management accounting is lost mainly due to external accounting principles and ERP features.

  • The profitability of a business is driven by the product mix/product lines, brands, customers and other relevant drivers linked to actual cash flow generation, not the profitability of a single product. 

  • Capacity, constraints and opportunities are not part of management accounting.

  • Traditional management accounting can be considered Anti-Lean and in conflict with flow principles

Decision making

To make a good decision, you need to have a sense of two things:

  1. How different choices change the likelihood of different outcomes i.e. prediction

  2. How desirable each of those outcomes is i.e. judgement

NoBSH focus on the prediction capability, thereby enabling:

  • Full compliance with Lean principles 

  • A good understanding of current capabilities, constraints and cash flow drivers

  • Fast and reliable financial & capacity understanding and simulations 

  • Alignment of forecasting in the company

  • Awareness of the bottom line & cash flow impact of any business decision!

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Cash flow and profitability improvement

Combining your current reality, relevant reporting and prediction capabilities will drive cash flow and profitability:

  • End-to-end analysis to optimize total profitability

  • Understanding the impact of truly variable cost and fixed cost components

  • Common KPI:s, measurements and incentives

  • Finance and operations to speak the same language

  • Focus on flow and sustainable changes

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Interested to hear more?