Profit-Driven Decision Making

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The module in a nutshell

It is important that every possible project or other course of action is assessed on the basis of whether it increases or decreases profitability. It’s the acid test, but all too often staff at all levels of the organization lack the technical skills needed to assess profitability. In this module of the Process Transformation Programme participants learn the importance of adopting a business attitude in decision making and the techniques needed to determine the profitability of a course of action.

The aim and outcomes of the module

The aim of this module is to provide participants with the technical knowledge and skills that will enable them to undertake cost/benefit analyses. To achieve this aim the module will:

• impress upon participants the importance of adopting a profit-oriented point of view when assessing options 
• teach participants about different types of cash flow and the difference between cash flows and accounting numbers
• develop the skills of completing a cash flow statement
• examine the commonly encountered methods of appraisal and their implications
• show how risk can be accommodated within investment appraisal

Who Profit-driven decision making is for

This module is designed to be applicable to members of improvement teams and those responsible for managing projects. It complements the contents of other in the Process Transformation Programme modules that deal with the Minimize cost core objective, equally it can be successfully studied on its own.

What’s in Profit-driven decision making

The module covers the following topics:

• making decisions with profit in mind 
• cash flows and accounting numbers 
• the principles of the cash flow statement 
• preparing a cash flow statement – problems and practice 
• payback, IRR, NPV as ways of assessing profitability 
• the problem of risk in different types of project.

Important other information

Duration: Profit-driven decision making lasts for one day and can be used by itself or in combination with other modules in the Process Transformation Programme.

Location: Ideally a room close to the workplace of participants, though it can be run off-site effectively.

In common with other modules in the Process Transformation Programme the module is designed to run successfully with between 8 to 18 participants.

Price: As a stand-alone module, £2,500 inclusive of all materials. This price does not include expenses which are charged at cost..

Contact for more information:

Karen Dunn
Burge Hughes Walsh
Suite 13b
Castle Mound Way
Central Park
Rugby CV23 0UZ

Telephone: 01788 550015
email: kdunn@burgehugheswalsh.co.uk