If you were to raise your price by 5% on Monday morning, nothing would happen except
that you would increase your operating profit by up to one half!
We teach and deliver that finance has a key role to play in the design of strategy in that the organisation’s plans need to deliver gross margin and operating profit. Cost reduction is not a strategy. It is a mindset of the failed.
The approach we take is to devise the strategy and then to sit down with the finance people and turn the strategy into a more profitable one. Some believe that cost management is the key criteria for a successful business. Cost reduction is of course not a strategy. Someone has to control costs. Good luck with that. Excellent comprehension of the value that finance can add to the business will seriously enhance returns.