Backward Profit Planning- The Forced Profit Approach

Backward Profit Planning- The Forced Profit Approach

by YourBoard | The Science of Business

 Backward Profit Planning- The “Forced” Profit Approach

This video will teach you ow to establish a forced Plan for Change within a company and identify how much change is going to be needed to earn expected returns.

Frequently Asked Questions

How do you begin establishing a Plan for Change?

You start the planning process by determining what profit dollars are required to satisfy your return on investment criteria, whichever one you have chosen, and plug that number in at the bottom first.

Why is it important to determine what profit dollars are required to satisfy your return on investment criteria?

This will allow you to immediately determine how much of a challenge is ahead of you and the level of change initiatives that need to be implemented to drive the needed revenue growth, cost reduction and profitability to achieve the desired returns.

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