Product drivers looks at the economics of producing what you do: examining all your processes to find out which activities really make your costs.
Customer drivers is about the customer-related actions that drive revenue, so that’s transactions, sales and customer service.
* It is also said that the nicest thing about not planning is that failure comes as a complete surprise and is not preceded by a period of fear and depression.
Naturally, all your other activities support these, so we’ll be feeding in their top-line costs.
Next we can compile a matrix to see which products and which customers are responsible for your costs.
What you get from this is an understanding of the profit dynamics of your operation and a profile of the cost of your customers.
This gives us the profit prescription.
Market drivers is an optional but recommended module that looks at your industry and market
Our core building blocks find out what drives the cost of what you do: