Decision Inc. transforms analytics approach and capabilities at international services group.
Decision Inc. UK (DI), has completed the implementation of ValQ Power BI Value Driver Tree Model at professional services company, to improve its analytics and decision making across major territories; UK & Europe, and the Middle East.
About the Client
The client is a UK top 250 company, managing over hundreds of service contracts worldwide.
It operates internationally across four geographies: UK & Europe, North America, Asia Pacific, and the Middle East and services clients in a variety of public and private sectors.
The Requirement
The client expressed a clear ambition to become a more data driven business is to use data to better understand and manage business performance. Modelling and measuring how value is created or eroded is critical to making the right economic choices.
Operational decisions can have positive outcomes in one area (say, reduction in agency staff costs) and a far worse unintended consequence in another (Customer KPI penalties). It is only through modelling and measuring these value drivers and the outcomes they collectively generate, that we can make the right economic choices. Furthermore, accurate planning, forecasting, predicting, and bidding is reliant upon having a good understanding of the operational drivers of financial outcomes.
The Solution
To achieve this DI implemented a Value Driver Model (VDM) based measurement system that blends financial and operational data to better understand how this can benefit the business. In consultation with business leaders across the divisions and business units, there is a universal consensus that this is a valuable capability to pursue.
The Solutions delivered:
The VDT model contains the entire income statement structure of the business’ finance figures. When drilling down below the detailed level of the income statement, the model breaks out into the areas of operational metrics that drive these financial figures:
Operation cost drivers:
- HR Costs related to managing, recruiting, and training their delivery teams
- Maintenance Cost of facilities and Equipment
- Overtime costs; and drivers of overtime activity
- Fuel cost and vehicle efficiency drivers
- Externally procured services (agencies costs and service contracts)
Revenue Drivers:
- Contracted service rates.
- Team headcount and availability drivers:
- Leave
- Absence
- Training Time
The Result
Benefits realised through this project:
Improve the business’ understanding of what increase and what reduces margin in the business down to the operational metrics.
Break down the silos across functions in the business due to the visibility of how they impact each other.
Having measurable financial impacts modelled on operational drivers and actions allowed the business to focus its activity to directly improve the business, and service to clients and society
