Everyone has heard of the 80/20 rule, but have you heard of the 120/50/30 rule? Generally speaking, 50% of the capital a company deploys drives 120% of the profits, about 20% of capital returns approximately the required rate of return and at least 30% is used on activities that destroy shareholder value. Facing these realities, a small improvement in focus towards value-generating activities and away from value-destroying activities can drive monumental results. DPO&Co. helps clients identify the 5-10 issues that will drive the highest impact for the enterprise and allocate everything from owners' equity to the finite sales manager's time on the customers, geographies or product segments that actually drive profits.
12-week project: Identified $130M of potential profit improvement at heavy industrial client by prioritizing resource allocation on eight opportunities with the highest value at stake
Impact and Results
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