ASSET UTILIZATION ACCELERATOR

• Do you have visibility into cash cycle trends and analysis? Do you look at actuals vs. forecast vs. benchmarks?
• Are you actually measuring your order-to-cash and procure-to-pay process times?
• Do you know the optimal internal and external benchmark times?
• Do your cash cycle models include payment delays due to product and service quality issues as well as invoice accuracy issues?

Do you know if you can avoid additional capital expenditures and still maintain current or better levels of production & quality?

Do you have a production scenario ready-at-hand for when working capital charges and the cost of debt change?

Does your indirect-cost allocation method help or hinder understanding which assets provide the most return?

The success of any enterprise is tied to its ability to manage and leverage its assets. As sales decline in this economy, inefficiencies once hidden by hefty profits will be revealed. Asset Utilization can measure how efficiently a business uses its resources and the effectiveness of its managers. It can measure aggregate success and can be a good basis for benchmarking and performance-based variable compensation.

Senior management wants to know how well the business uses its assets to generate income, and many executives keep Return on Assets (ROA) front-and-center on their executive dashboards. But what if ROA is missing the mark or not performing as expected? What’s the right drill-path to understand the root cause of poor performance? The answer is unique for every business.

Using the Business Foundation Asset Utilization Accelerator, your specific drill path is uncovered and presented in a way that everyone in the organization can understand the effect that many decisions can have on how well assets are leveraged. From financial and operational to tangible and intangible – having visibility into the right drivers lets you make better decisions that affect the overall goals of the company. And where you don’t have the right visibility or agreement on the results, our Accelerator helps I.T. understand what systems can help enable that visibility.