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Measuring client profitability—IRIS

Getting to grips with Client (Un)Profitability

This white paper tackles a growing problem which can be regarded as a side-effect of the current tough operating climate.

In their efforts to maintain business viability—and keep staff gainfully employed—some project-oriented businesses can be tempted to take on projects with narrow profit margins. They then tend to over-deliver to retain the client’s business in an aggressively competitive marketplace.

This trend is an entirely understandable, but is not a sustainable way of doing business.

We discuss here the value of adopting an evidence-driven approach to understanding which areas of your business and client base are most/least
profitable.

Author: IRIS Project Solutions (submitted by Rupert Ralston)
Review status: Peer reviewed

June 12, 2011