Cost Loaded CPM Schedules
Most companies treat cost management as a one-off exercise driven by the need to manage short-term profit targets—and some of these exercises do succeed in the short term because of constant pressure from the CEO or CFO. Yet such hasty cost-cutting activity typically goes into reverse once the pressure is removed and rarely results in sustainable changes in cost structure. In our experience, the reason is that one-off exercises don’t require internal capability building.
A better approach is to use the initial cost reduction program as an opportunity to build a competency in cost management rather than in mere cost reduction. Cost-management programs need to be scoped as two- to three-year initiatives rather than as immediate-term efforts with one-year horizons. Also, effective cost-management programs, by their very nature, include plans for dealing with changing business conditions—for instance, by adjusting for activity-level changes, competitive drivers, or both.
We support clients in the complex tasks of managing and streamlining their balance sheets—enhancing profitability while taking into account conflicting objectives such as reducing capital, minimizing risk, and increasing liquidity. Advanced project-risk analytics enable institutions to improve project decisions and increase revenues while reducing risk costs. We work across all asset classes, all types of project risk models, and the entire project life cycle, including profit maximization, and enterprise portfolio management.
Corporate Finance Modeling
Using deep analytical expertise and proprietary tools and models, our teams help companies identify their true sources of value. We then use these findings to develop strategies to capture that value, such as mergers, divestitures and asset sales, and equity-based transactions, as well as guide investments that enhance value. Helping our clients decipher their true sources of value allows them to align their organizations and shape their portfolios to better suit their unique competencies and to jettison offerings that can impede performance. Our work with high-tech companies extends to deal support beyond valuation and strategy to encompass all phases of due diligence and merger management.
Liquidity Risk Modeling
We support clients in analyzing and understanding characteristics of their balance sheet (for example, different types of deposits and mortgages with prepayment rights) both under normal circumstances and under stress. We also help clients refine their funds-transfer pricing based on liquidity-modeling results. We perform liquidity risk modeling at an enterprise-wide level as well as for specific businesses.
For companies exposed to a complex interplay of risks, strategic cpm schedule models provide an interesting new analytical tool for supporting management decisions. The methodology is based in techniques developed for financial and commodity-trading risk management, but companies whose investment in risk analysis stops there may be missing the highest-value opportunity: better strategic portfolio decisions, operations-footprint decisions, capital-investment decisions, and even pricing and project decisions.
With governments worldwide facing profound fiscal imbalances and systemic financial failures, public-finance institutions—including finance ministries, government lenders, public pension funds, tax authorities, central banks, and financial regulators – are under intense pressure to increase transparency and improve their performance. We help public-finance institutions meet these challenges. Our work in public finance covers a wide range of topics, from examining macroeconomic trends and performing expenditure analysis to assessing and quantifying risk, redesigning IT infrastructure, and exploring new methods of revenue generation.