Do you know the 6 steps to assessing and improving revenue management practices?
PACE has just posted on LinkedIn an eBook dives into the revenue component of the Profitability Analytics Framework to unearth what many are missing.
We show how this can be done using a six-step methodology that enables the finance and accounting function to serve as an effective partner with other business functions.
The first four of these steps include:
Step 1: Do a quick assessment of the organization’s use of the four revenue management levers (pricing basis, inventory allocation, product configuration, and duration control)
Step 2: Review levels of revenue management details to determine current practice and understand different intensities of practice.
Step 3: Analyze your organization’s business strategy and business environment to find issues that can assist or hinder revenue management improvement.
Step 4: Evaluate revenue and cost driver importance in your organization’s strategy and identify gaps in current managerial and accounting attention.
Read the eBook for the last two and all the details.
The questions on the revenue management levers will reveal how much you might benefit from a greater focus on revenue management.
The greater the number of "yes" responses, the more your company can benefit by critically reviewing your revenue management approaches and the management accounting information provided across business functions.
Check it out on page 5. How many “yes” responses did you get?
Oh, and there are two case studies at the end. Hopefully, they will bring even more clarity to this approach.
Here's the URL for the LinkedIn post: