Metrics Meet Monte Carlo

Hiding within gross profit lurks a quiet antagonist. An enemy that many may be secretly unaware of and could potentially be killing their business. That enemy is embedded fixed costs within the Cost of Goods Sold (COGS) line item of the income statement. COGS, frequently also called Cost of Sales, is an important component of…

Zero-Based Budgeting – Piece of Coal to Rising Star

Zero-based budgeting has been the unwanted stepchild of the financial planning and analysis (FP&A) world for decades. Chief Financial Officers would lie to their friends about how they budget and say they do cool things like rolling forecasts, beyond budgeting or at the very least incremental budgeting at cocktail parties but NOT zero-based budgeting which was…

5 Questions To Ask Before Doing a Project Post-Mortem Analysis

Your firm just completed a multi-million dollar Enterprise Resource Planning (ERP) project to consolidate the information system resources of two business entities. The project is seven months late with cost overruns of $800,000. Fingers are pointing everywhere as to who is to blame for the delay and extra costs.   Management would now like to…

5 Views of Risk: How Big is Your Ocean of Financial Risk

“BUSINESS IS ALL ABOUT RISK TAKING AND MANAGING UNCERTAINTIES AND TURBULENCE.” BY GAUTAM ADANI, BUSINESS TYCOON   Late this September, the movie, Deepwater Horizon will appear in theaters. The high level of interest in this release can be recognized, with over five million movie trailer view from YouTube.   What could engage so many viewers in this…