Blogs

Profitability Optimization and Cost Management through Efficient Financial Models

By Pedro San Martin posted 2 days ago
Introduction After the Great Recession of 2008, the need to improve financial model management became a priority for organizations. The crisis showed how many companies, even the most sophisticated ones, failed to anticipate or mitigate financial risks. To address this challenge, regulations such as SR 11-7 from the Federal Reserve System were introduced, establishing financial model risk management guidelines. However, for financial models to truly add value, they must be strategically designed to optimize profitability and improve cost management. This article explores how CFOs can implement effective financial models to drive strategic decisions and protect ...

Cost Innovation and Business Coherence: Creating Sustainable Competitive Advantage

By Pedro San Martin posted 5 days ago
Introduction Cost innovation has become one of the most powerful tools for companies to maintain a sustainable competitive advantage in today's challenging economic landscape. However, for this strategy to be effective, it must align with a coherent corporate identity and capabilities. This article explores how companies that effectively integrate their value proposition with distinctive capabilities reduce costs and strengthen their market positioning . We will examine practical frameworks, case studies with quantifiable results, and actionable recommendations for implementing cost innovation within a coherent business strategy. The Power of Business ...

March Member Spotlight

By Corbin Lynn posted 8 days ago
🌟 Member Spotlight: Jeff Sebeckis 🌟 Jeff is an accomplished professional with extensive experience in reporting, analysis, project management, and compliance. He has demonstrated his technical acumen by managing high-level financial tasks and enhancing departmental efficiency. In his various roles Jeff has led several accounting software transitions including implementing MS Dynamics 365, which significantly increased department productivity and security. Before his tenure at Marx|Okubo Associates, Jeff held various significant roles, including Accountant II at HomeAmerican Mortgage Corporation and Financial Analyst at Newalta Environmental ...

Transforming Your Company Through Comprehensive Cost Management: A Four-Dimensional Framework for Tariff Scenarios

By Pedro San Martin posted 13 days ago
Executive Summary Companies that effectively manage tariff impacts gain significant competitive advantage in today's volatile global trade environment. Our four-dimensional cost management framework helps organizations reduce tariff-related costs by 15-30% while building resilience against trade policy shifts. Based on successful strategies implemented by Fortune 500 companies, this framework provides a systematic approach to assessing multiple scenarios, optimizing your global value chain, and transforming tariff challenges into strategic opportunities. The Tariff Challenge: Why Traditional Approaches Fail Imagine this scenario: Your company ...

Does the 80/20 Rule Really Apply in Profitability Analytics?

By Pedro San Martin posted 02-15-2025
The Pareto Principle (80/20 rule) has been widely cited in university courses, whitepapers, and research studies as a fundamental law of business profitability (Koch, 2011). It suggests that 80% of a company's profits come from just 20% of its customers, products, or sales channels . While this heuristic is helpful for strategic focus, it does not always hold true across different industries and market conditions. Analyzing the Profit Curve: Does it Follow the 80/20 Rule? The provided profit curve, shown in the image, serves as a clear empirical test against the strict application of the Pareto ...

Webinar Alert!!! The art of presenting Financial Data: Public Speaking for Accountants

By Rohit Kumar Gupta posted 02-15-2025
Topic (Title of session): “The art of presenting Financial Data: Public Speaking for Accountants” Date: 22 nd Feb 2025 Start Time: 5:00 PM IST Duration: 2 hrs. CPE amount: 2 Field of study: Accounting Registration link: https://event.on24.com/wcc/r/4849884/A5A4F46A938A297E67355E66FD355747 Speaker Name, Bio, and Picture: Uttam Pai Umesh, CPA Uttam Pai Umesh, CPA, is an experienced accounting professional dedicated to shaping the future of the profession. As the AVP of Academics and Corporate Relations at Miles Education, he leads a team managing academic partnerships with 50+ colleges ...

Webinar Alert!!! The art of presenting Financial Data: Public Speaking for Accountants

By Rohit Kumar Gupta posted 02-14-2025
Topic (Title of session): “The art of presenting Financial Data: Public Speaking for Accountants” Date: 22 nd Feb 2025 Start Time: 5:00 PM IST Duration: 2 hrs. CPE amount: 2 Field of study: Accounting Registration link: https://event.on24.com/wcc/r/4849884/A5A4F46A938A297E67355E66FD355747 Speaker Name, Bio, and Picture: Uttam Pai Umesh, CPA Uttam Pai Umesh, CPA, is an experienced accounting professional dedicated to shaping the future of the profession. As the AVP of Academics and Corporate Relations at Miles Education, he leads a team managing academic partnerships with 50+ colleges ...

10 Reasons Why Finance Professionals May Overhype AI

By Pedro San Martin posted 02-14-2025
The financial sector is lively with discussions about artificial intelligence (AI) and its potential to transform corporate finance, accounting, and strategic decision-making. AI-powered forecasting models, risk assessments, and automation solutions are being presented as game-changers for CFOs. However, a more critical analysis indicates that AI may not be the ultimate solution that some claim it to be. While AI has potential, finance professionals must recognize its practical limitations. Here are ten reasons why AI may be overhyped for the CFO's office and finance professionals: 1. AI Lacks True Financial Intelligence At first glance, AI-powered financial ...

Unlocking Profitability Analytics Through Better Problem-Solving

By Pedro San Martin posted 02-13-2025
As a Profitability and Cost Management Expert, I've spent years navigating complex organizational challenges, from untangling cost inefficiencies to identifying strategic growth opportunities. In my experience, the key to profitability analytics often lies in crunching numbers and how we approach problem-solving as teams. Reflecting on an insightful article I recently read on team collaboration and problem-solving, it struck me how profoundly the principles of psychological safety and cognitive diversity apply to my EPM field​. These aren't just abstract ideas—they're essential tools for maximizing efficiency and unlocking the full potential of any ...

2025 Basic Guide to Improve Cost Decisions

By Pedro San Martin posted 02-07-2025
Effective cost management can be a significant value driver, but it requires leadership from executives committed to investing in the future. The urgent pressure to reduce costs is undeniable as the recession's impact continues. However, business leaders must remain committed to evolving cost management practices so that limited resources and funds are consistently directed toward the most valuable business outcomes. This responsibility falls on more than just operational managers, even though they often bear the brunt of executing cost initiatives. Executive leaders develop strategies, foster a culture, and establish processes incorporating a value-realization ...

Strategic Cost Management in the Era of Tariff Wars

By Pedro San Martin posted 02-01-2025
Introduction Geopolitical shifts and volatility in international trade have made tariff wars inevitable. In response to these challenges, companies have two choices: they can either react passively and face the consequences or proactively develop informed data-driven strategies. A significant obstacle to competitiveness is the lack of transparency in costs and the performance of international trade operations. Optimizing cost management is essential for maintaining acceptable profit margins and generating value for employees, customers, and shareholders. In this context, the role of the CFO becomes increasingly important as a change agent, providing strategic ...

Why do I need a PCM Center of Excellence in my organization?

By Pedro San Martin posted 01-13-2025
Why is a Profitability and Cost Management (PCM) Center of Excellence necessary for my organization? A PCM Center of Excellence (CoE) is a strategic initiative to centralize, optimize, and standardize the organization’s approach to understanding, analyzing, and enhancing financial performance. It focuses on providing comprehensive insights into revenue, costs, and investments, ultimately improving the organization's overall profitability. The PCM Center of Excellence is a centralized knowledge repository that captures and disseminates critical insights across the organization. Key best practices may include: Eliminating manual cost allocation and profitability ...

Maximize Your IMA Membership in 2025

By Trent Kramer posted 01-10-2025
Ready to supercharge your 2025? Here's your quick guide to making the most of your membership – including exciting NEW benefits: Connect with peers and experts through our global digital Shared Interest Groups Enjoy new micro learning courses for quick, free, on-demand professional development Access curated job listings and career resources through our enhanced Career Center Discover AI’s transformative potential ...

January Member Spotlight

By Corbin Lynn posted 01-06-2025
🌟 Member Spotlight: Charles R. Wright, MBA, CPA, CMA, CFF, CGMA, CIRA 🌟 Charles R. Wright is a seasoned financial and operational leader with a career spanning over 40 years. A former CFO and Treasurer for the Denver Zoo, he revamped reporting systems, implemented innovative budgeting approaches, and championed a lean management program to enhance efficiency. Prior to this, he served as Senior Vice President of Finance and Administration at Mile High United Way, where he oversaw financial planning, grant management, and led a record-breaking fundraising campaign. Charles started his career with a decade as a partner at Ernst & Young, leading ...

¿Cómo ha evolucionado el rol del contador de gestión en el mundo empresarial moderno?

By Pedro San Martin posted 01-04-2025
En este blog, exploro la evolución fundamental de la contabilidad de gestión, desde su enfoque tradicional hasta su rol estratégico en el entorno empresarial contemporáneo. A través del análisis de avances tecnológicos, los efectos de la globalización y las complejidades del negocio moderno, respaldado por evidencia empírica y estudios de caso tanto globales como latinoamericanos, demuestro cómo esta disciplina ha pasado de ser un soporte financiero a convertirse en un socio estratégico. A continuació muestro como se integran las perspectivas regionales y datos empíricos para brindar una visión integral de esta transformación. La contabilidad de gestión ...

The Hidden Power of Stakeholder Analysis: Transforming EPM Implementation from Technical Exercise to Strategic Victory

By Pedro San Martin posted 12-31-2024
Executive Summary Profitability analytics, as part of Enterprise Performance Management (EPM) implementations, frequently fail due to human factors rather than technical issues. This article introduces an improved framework for transforming EPM projects through strategic stakeholder analysis, supported by real-world case studies and actionable insights. Based on lessons learned from successful implementations, we explain how leading organizations incorporate advanced stakeholder engagement practices to achieve faster implementation times, higher user adoption rates, and sustainable business impact. The Human Factor in Digital Transformation ...

The Critical Role of Human Decision-Making in AI-Enhanced Profitability Management

By Pedro San Martin posted 12-25-2024
The Critical Role of Human Decision-Making in AI-Enhanced Profitability Executive Summary While artificial intelligence offers robust cost optimization and revenue enhancement tools, it's crucial to remember that human judgment remains irreplaceable in strategic profitability management. This analysis underscores the unique value that human decision-makers bring to the table, particularly in navigating complex financial choices and leveraging AI capabilities to maximize organizational performance. The emergence of AI has generated significant enthusiasm for automating financial decision-making processes. However, the notion that AI alone ...

How I Learned to Build Trust While Reducing Costs

By Pedro San Martin posted 12-13-2024
Are you establishing trust while lowering costs? When I first faced the challenge of optimizing costs in an organization, I grappled with a pressing question: Can you truly build trust while cutting costs? At the heart of this dilemma lies a paradox. Cost-reduction initiatives often spark anxiety and distrust among employees, threatening the very fabric of organizational culture. However, I’ve realized that building trust and reducing costs are not mutually exclusive. When approached thoughtfully, they can create lasting value for everyone—employees, customers, and shareholders alike. The Problem with Traditional Cost-Cutting Many organizations focus ...

December Member Spotlight

By Corbin Lynn posted 12-10-2024
🌟 Member Spotlight: Austin Elsey, CMA, CFE, CRC, CSCA, MAFF, CDFA 🌟 Austin Elsey completed a Bachelor of Science at Missouri Southern State University with a major in finance. Being that Joplin, MO was not an investment banking hub, Mr. Elsey joined a local community bank to build some professional experience. After a semester hiatus, he decided to keep momentum going and pursue his MBA. Mr. Elsey enrolled with the University of Florida online, allowing him to complete that program in an accelerated format. He also has obtained certifications as a Certified Management Accountant, Certified Fraud Examiner, Credit Risk Certification, Certified in ...

Launching the Performance Management Shared Interest Group

By Hessel H. Brouwer posted 12-07-2024
We're excited to launch the Performance Management Shared Interest Group (SIG) with the Institute of Management Accountants. The SIG addresses the "Performance Management Problem": even with advances in management theory, behavioral science and technology, many organizations still struggle to implement strategy, waste a lot of time on planning and budgeting, and find it hard to course-correct when targets are not met. The SIGs mission is to provide business professionals with though leadership, a forum for exchange and best practices on performance management so they can act as experts to help improve the performance of their organizations. This will ...