2-Story Pnl

Two-Story PnL Successfully implemented in a real Software company - goals achieved Presented to / discussed method fundamentals with IT professionals in Kyiv Passed review by management accounting professors from business schools PROBLEMS TO SOLVE In a Software engineering company, delivering many projects in parallel, with "traditional 1-story"[or no] management accounting: Line managers have no clear financial KPIs per their zones of responsibility Project's profitability depends on decisions out of project & sales managers direct control Financial performance of departments and offices is blurred Middle management has to validate too many decisions with top management SOLUTION The Two-story PnL method: Allocate each project and every employee as financial responsibility centers by introducing carefully weighed transfer pricing Split the Gross Profit in two independent layers -"farming the resources"(line managers' contributions), and "consuming the resources"(projects' contributions) Slice "resources" layer by any "resource pools"- teams, departments, offices - to see meaningful financial results per company structure MORE: Slides, maybe start with #13 - Chasopys presentation recording (playlist of 11 videos / 45 minutes, voice in Ukrainian only)- & list=PL2y6E_942HR7sL3MCoBHqr6MYjPyNC2JG CONTACTS:+380 (67) 501-1693 https://join.skype.com/invite/eL0eHfmM9KoA Ⓕ