AccountingProcess / methodThe accrual method in accountingHow can the accrual method in accounting improve people, teams, or organisational effectiveness?Use accrual accounts to understand the economic performance of a business over a reporting period.
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AccountingProcess / methodThe accrual method in accountingHow can the accrual method in accounting improve people, teams, or organisational effectiveness?Use accrual accounts to understand the economic performance of a business over a reporting period.
FinanceKPI / metricOperating profit marginHow should operating profit margin be measured and interpreted?Use operating profit margin to track whether revenue is converting into operating profit, to compare business units or periods using the same accounting definition, and to investigate the effect of pricing, volume, mix and operating costs. It is especially useful alongside revenue growth: growth that requires operating costs to rise faster than revenue will reduce the margin.
OperationsFramework / modelRegression analysisWhen and how should regression analysis be applied?Use regression when a decision requires a quantified relationship, a conditional prediction or a test of how an outcome differs as selected inputs change.
FinanceFramework / modelValue-based managementHow can value-based management support strategic choice or positioning?Use VBM to set goals, evaluate strategy and performance, allocate capital, design incentives, communicate with investors and value businesses or projects. Traditional accounting measures such as earnings per share or return on equity can report profit without charging fully for the opportunity cost of invested capital. VBM makes that charge explicit.
FinanceKPI / metricWorking capital ratioHow should working capital ratio be measured and interpreted?Answer the performance question: “How well are we managing our cash flow?”
FinanceKPI / metricPrice/earnings ratio (P/E ratio)How should price/earnings ratio (p/e ratio) be measured and interpreted?Answer the performance question: “How does the market value this company relative to its earnings?”
AccountingKPI / metricRatio analysisHow should ratio analysis be measured and interpreted?Compare a company with carefully selected peers or relevant industry ranges.
FinanceFramework / modelActivity-based costingWhen and how should activity-based costing be applied?ABC is particularly useful when overhead is substantial and products or customers vary widely in complexity and handling requirements. By tracing indirect expenditure to the activities that generate it, the method makes those costs more directly attributable. This greater precision can expose opportunities to improve process effectiveness and efficiency while clarifying the true cost of an offer.
FinanceKPI / metricNet profitHow should net profit be measured and interpreted?Answer: “To what extent are we generating bottom line results?”
FinanceKPI / metricCAPEX to sales ratioHow should capex to sales ratio be measured and interpreted?Use the ratio to ask: “How much are we investing in future capacity relative to our sales and competitors?”
FinanceKPI / metricReturn on equity (ROE)How should return on equity (roe) be measured and interpreted?Answer the key performance question: “How efficiently are we using the investments that shareholders have made to generate profits?”
FinanceFramework / modelDuPont schemeHow can dupont scheme support strategic choice or positioning?Use the scheme to benchmark comparable companies and explain why one earns a different return. It also supports scenario analysis by showing how a proposed change in price, cost, working capital, fixed assets or financing would flow through to the final ratio.
FinanceFramework / modelEconomic value added (EVA) and weighted average cost of capital (WACC)How can economic value added (eva) and weighted average cost of capital (wacc) improve people, teams, or organisational effectiveness?EVA brings two principles into investment and operating decisions:
AccountingFramework / modelThe DuPont identityHow can the dupont identity support strategic choice or positioning?Diagnose a company’s financial performance.
FinanceKPI / metricNet profit marginHow should net profit margin be measured and interpreted?Answer: “How much profit are we generating for each dollar in sales?”
FinanceKPI / metricOperating expense ratio (OER)How should operating expense ratio (oer) be measured and interpreted?Answer: “How well are we managing operating expenses relative to revenue?”AccountingFramework / modelActivity-based costingWhen and how should activity-based costing be applied?To establish a more accurate view of the cost of manufacturing each product.
Organisational behaviourFramework / modelRecruitment channel analyticsHow can recruitment channel analytics improve people, teams, or organisational effectiveness?Review channel performance continuously enough to support decisions and conduct a structured assessment at least once a year. Analyse by role family, location and hiring context because the channel that works for one labour market may fail in another.