Improving decision-making by including uncertainty in budgets

14 April 2014 — Quantifying and estimating project and investment results are very important for financial planning, investment comparison and decision making purposes. However, business is always conducted in an uncertain environment while financial planning is commonly done using single-value revenue and cost-side estimates, which managers assess using rules of thumb. In this article, we present an approach where the best, base and the worst case scenarios are used to improve the estimates.

Towards more strategic cost management

22 March 2013 — The prolonged global economic downturn has enforced continuous waves of restructuring across industries. Unfortunately, many have selected an easy approach and initiated “across the board” cuts without clear choices on what to cut and where to invest. In this article, we explain why and how a more strategic approach should be considered.

Valuing a business in 30 minutes for quick insights

14 December 2012 — Although valuation is complex, in some situations a quick review is adequate to get an idea of the company’s value, key drivers to increase value or what is fundamentally expected of a business’ performance given a certain value, for example an asking price of a business up for sale. This article discusses the approach for conducting a quick basic valuation of a business.

Stochastic budgeting – forecasting large uncertain sales projects

21 June 2012 — Today’s markets are increasingly sensitive, and analysts react strongly to even the slightest unexpected events in a company’s performance. The efficiency of markets to share, disseminate and analyze data is seen in the increased volatility that seems to affect companies even in the most stable industries. Sales budgeting and forecasting is an area where even basic improvements can yield a much deeper insight into the company’s situation and outlook.

From pricing theories to concrete analyses, decisions and actions

20 June 2012 — Everyone acknowledges that pricing is a key contributor for business results. However, pricing is much more than setting up a right price level. This article gives an overview on how pricing analytics should be done, what are the key decision points in a pricing model and what must be taken into account to ensure a successful implementation of a pricing model.

Pushing innovation and cost effectiveness through Design-to-Cost

Pushing innovation and cost effectiveness through Design-to-Cost

5 April 2012 — In industries such as automotive, IT and telecom the drive for continuous innovation while reducing costs have long been the norm. The same trend has spread to other areas as well, touching both products and services; customers want more, but they want it for less. There is an increased demand for simultaneous innovation and cost reduction

Leveraging professional financial management practices to drive small and medium-sized company growth

Leveraging professional financial management practices to drive small and medium-sized company growth

5 April 2012 — Growth of small and medium-sized enterprises (SMEs) is crucial for the Finnish economy, but based on earlier research, there are only few companies who have actually grown to revenues of 200-500M€, and practically no companies have grown to above 1000M€ of revenue during the past 20 years. One of the reasons we have found is that the finance function of a normal SME does not support its growth journey well enough, leaving one important value creation lever under-utilized.