Capability Costing ConsultancyWe help model your responses to changes in organisational requirements
Why is it important for private sector enterprises to clearly understand the relationship between overheads and delivery functions?
There are many reasons but there are two particular drivers:
- Having a clear model of the relationships allows them to calculate the profitability of delivery units and the particular products they may make and sell, for example;
- It also allows profit-making businesses to offset the expenditure on overheads against their tax-liability, allowing them to pay less tax.
Every public-sector organisation exists to deliver a specific set of outcomes, for which they receive a set amount of funding (in most cases). When the built-up (and through-life) cost of delivering a given outcome is not known then how can an enterprise understand the consequences of cuts to their budgets (on those outcomes). That’s how we can help.
- Parity have extensive experience in understanding and modelling the built-up costs of both private and public-sector organisations, and their relationships to outcomes.
- The paradigm of our consultancy service involves analysing, understanding and modelling your costs in terms of the capabilities your organisation brings to bear, in order to successfully deliver your outcomes; and then determining a model of how these costs ought to be related to the outputs you deliver.
- The Parity Capability Costing method allows us to build you a deterministic model of your enterprise, which you can use to understand your organisation and model the effects of possible or real changes.
Get in touch with Parity Business Consulting to see how a we can minimise risk in your organisation