Profit Management                                                                                   06/12/2004

Competitive advantage through active profit management

The profitability of many companies in mature markets and industries is increasingly under threat due to various competitive factors. Likewise, companies in emerging and growth markets and industries are faced with the challenge of nurturing the growth of their revenue line without eroding their profitability by aggressively expanding their cost base.

The concept of Profit Management dictates that in both mature and emerging environments all functions and processes within an organization and, extending from the organization into its suppliers and customers, impacts profitability and continuously needs measurement and review to optimise performance and results.

Only when it is embedded within the organization as a continuous evolving process with buy-in and endorsement from all stakeholders; clear, objective and understood improvement targets; and visible programme management, can it then begin to deliver results.

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