Your financial statements are a byproduct.
They're what's left over after thousands of decisions. Nobody actually manages a P&L. You manage the decisions, and the P&L follows.
A business is a system.
Revenue, profit and cash aren't things you control directly. They come out of thousands of decisions about products, customers, pricing, suppliers, people and operations, and those decisions all affect each other.
Most of them barely matter. A few of them decide the economics of the whole business.
Finding those few is the hard part.
They rarely look important. A product line seems profitable until you count the ad spend and fees behind it. A channel keeps growing and never makes money. A group of customers brings in revenue and quietly eats cash.
At one company we worked with, most of the product line was losing money once every cost was counted. Cutting it made the business grow faster.
Your financial statements show the result of all of this. They don't show the cause.
How we work
We start with the numbers and work backward to the decisions that produced them. We find the few changes that would move the most cash, and we help you make them.
We'd rather get one decision right than write a hundred pages of analysis.
We care about cash more than revenue.
We usually take things out of a business rather than add them.
The name comes from Vilfredo Pareto, who noticed that a small share of causes tends to drive most of the results. That's how we look at every business we work on.