Business Case / Profitability / Metrics

Profitability Maximization through Contribution Management

In any industry, understanding the nature and behavior of cost is fundamental to profitability management.

But to maximize profitability, employees must understand how their work can maximize contribution (increasing their work’s economic profit) or minimize negative contribution (reducing their processes’ economic cost) in each and every decision.

Maximizing contribution depends on understanding how product and service revenue consumes plant, generates cost, and then leads to organic revenue.

The CostQuest contribution management method is a systematized approach to help you understand the relationships among customer revenue, cost, contribution, and profitability within a complex business environment. Our job is to help you make decisions that maximize the company’s profit long term.

For more information on this Practice Area, please review our Profitability Practice Area Profile.


COMPASS

COMPASS is an activity-based and economically rational approach to measuring and managing profitability. COMPASS provides the tools, methodologies and information neeeded for effective management. Its methodological approach encomposses experience gathered over the last decade throughout the world.

For more information on COMPASS, please review our COMPASS Product Profile.

CostQuest has also provided proprietary profitability, cost, telecom engineering, and metrics systems along with demographic data, data analysis, and GIS support to enhance decision making in some of the world’s leading companies. In addition, our clients have called on us to prepare economic, cost, and business intelligence papers, presentations, and workshops before legal and regulatory bodies around the world.

CostQuest has been involved in the design and development of some of the world's leading network costing and business analysis tools:

  • BellSouth Telecommunications Loop Model (BSTLM)
  • CostProLoop
  • New Zealand’s CostProNZ
  • Contribution Management and Profit
  • Analysis System (COMPASS)
  • BellSouth’s Analysis of Competitive
  • Entry model (BACE)
  • CostMap
  • Cost Proxy Model (CPM)
  • Hong Kong Cost Proxy model (HK-CPM)
  • BCPM (Benchmark Cost Proxy Model)
  • Australian Net Universal Cost Model (NUSC)

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