Glenn Hafler

Revenue Analysis and the 80/20 Rule

I recently had a discussion with a CFO of a major entity.  During our discussion he mentioned that they were looking at the overall revenue base and found that the bulk of their revenue came from just a few customers.  Further, they had build a significant support structure to generate and manage that revenue.  Not surprising when you think of the 80/20 rule which holds time and time again. The reality is that this is likely true for many organizations.  It is hard to turn away business, but ...

Quality of Revenue in a Capital Efficient Organization

Revenue generation ideas are hot topics right now.  But revenue generation doesn't always mean greater profits.  Reviewing your revenue base is an important exercise that should be conducted regularly.  Pruning the bottom 20% of your revenue base can increase your margins and net income.  While this sounds easy, the problem is in actually measuring the total cost of service and that goes well beyond direct costs. First start with the information that is readily available and trustworthy.  Rev...