When times are tough, every company looks to cut costs where they can. Yet how can this be accomplished without eliminating key projects and people? It is actually quite simple if you have the right data in hand. With the appropriate per-customer per-project profitability metrics, companies can easily shave off unprofitable work and learn how to focus their time, efforts and budget on the profitable work alone.
Cutting with Precision
Do all of the top managers at your company know which of your past projects were successful and which were failures? Do they know how many employees worked on these projects or how much time was invested in them? How about which of your clients were a drain and which ones were profitable? Without this information, you certainly cannot cut costs without risking the loss of projects and people that bring in the most revenue.
Implementing profitability metrics might sound complicated, but it is often easier than you might think.