Profitability Analytics is a framework for reviewing the costs, revenues, and performance of an organization and, in particular, its strengths, weaknesses, risks, and opportunities for improvement. Profitability Analytics has its roots in the Du Pont Profit Tree of financial indicators developed 100 years ago, but it also combines analysis of an organization’s performance in marketing, operations, and investment.

Markets and business practices are changing rapidly, and organizations need to regularly assess how well they are doing, where their strengths and weaknesses lie, and how they could improve. Profitability Analytics is a useful framework for this. It explores the performance of an organization from strategy through to delivery and management.

Profitability Analytics provides a robust framework combining data analysis with the exploration of the issues identified by the people in the organization to identify root causes and help the organization develop strategies to address those problems.

The course covers the following topics:

• The Origins of Profitability Analytics in the Du Pont Profit Tree
• The Evolution of Modern Profitability Analytics
• The Profitability Analytics Balanced Scorecard of performance measures
• How to conduct a Profitability Analytics review

The course is aimed at small and medium-sized enterprises, but the key elements and principles apply to organizations of all sizes. This course aims to inspire participants to examine their own organization’s performance in marketing, operations, and resource investment.

Field of Study: Finance