Griffon | Performance Measurement Applications

	Analysing Business Performance The financial planning and analysis function (FP&A) holds many of the keys to your business profitability, as they relentlessly track down pockets of unexploited enterprise value. FP&A departments tend to use a variety of tools to perform their function, including corporate performance management software, budgeting, planning and forecasting software, core financial management systems and ERP platforms. And in between all of these, they tend to use a lot of excel! So for that reason alone they would be better off with Anaplan.

	Case Study: AVIS Revenue Management One of the more important applications of performance analysis is Revenue Management (RM): the art of selling the right product to the right person at the right time for the right price. Achieving this is a core capability for airlines and hotel chains, and increasingly for car hire companies. Our mandate was to develop a simple methodology that used key ratios to empower daily RM actions by linking their decisions to financial value drivers, and particularly to their core metric, Revenue per Car Month. Background Traditionally, commercial and fleet challenges were tackled as separate issues. This meant that mismatches in supply and demand – which will always occur – were viewed either as a pricing problem or as a fleet supply problem. In other words, a fleet-related problem could only have fleet-related solution. AVIS invested strongly in developing it's revenue management capability, including recruiting many of the best and brightest operations research experts from the airline industry. They developed a suite of analytical tools to determine the best policy responses to match supply with demand. What was missing ? The only gap in their operational research was the financial dimension. They were able to identify which levers should be pulled to optimise operational performance, but ultimately their choice of which lever to pull (and how hard) needed to be guided by financial profitability. What was our solution ? We developed a set of Value Metrics, which reflected the ten determinants of Revenue per Car Month. This additional ‘texture’ allowed regional managers to refine their policy choices, based on their prevailing operating situation, and to prioritise their policy responses accordingly, based on the causal drivers of financial profitability.

	Additional Resources Griffon Conseils is in the process of finalising system of Performance Metrics for the Hotel sector, which we will release as an Anaplan App. Contact us for a free demonstration of how Anaplan can help you optimise your revenue per available room (RevPAR): James Cullinan Managing Director james@griffonsa.com