The Challenge:
In 2015 I was asked to help with a root cause analysis to investigate the poor performance of some projects in an engineering consulting firm’s portfolio. This article uses “fake” numbers, but they are similar (in the aggregate) to some extracted from an actual accounting database. When I entered the discussion the cause was assumed to be percentage cost of sales. Digging into the data resulted in different conclusions (and remedies) and underscored why using the right metrics for project profitability is critical. Continue reading Using the Right Metrics for Project Profitability – an Optimization Fable