The FTE Equilibrium

In economics, a state of equilibrium is the balancing effect of supply and demand.[i] Thus, the quantity the producers supply equals the quantity the market demands, and all parties are satisfied by receiving and paying a fair price. Theoretically, it is a win-win situation. When it comes to employees, businesses also need to ensure that […]

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The great remote shift: what happens next?

As majority of Australia returns to ‘the new normal’ we look at what impact the ‘great remote shift’ has had – and will have – on Australian businesses.    COVID-19 has undoubtedly changed the business landscape in Australian and globally. Whilst shifts in economic factors such as employment security, consumer sentiment and business investments continue […]

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Implementing Benchmark Analysis Improvements to your Client’s Business

Sometimes you’ll need to set a few progressive targets, to get a client from a ‘poor’ position, to a ‘best practice’ standard. Here is an example. Suppose you have a client who is a real ‘basket case’ of a business: too much stock; debtors don’t pay on time; the company doesn’t charge enough for their […]

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Improving Your Client’s Asset Productivity

The overall financial efficiency of your client’s business results from the interaction of ‘profitability’ on the one hand and ‘investment’ on the second.  Looking at ‘return on equity’ benchmarks can be problematic, as there are many variables in small businesses which will materially affect the comparability of those results.     However, reviewing Asset Turnover benchmarks […]

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Getting the Most out of Personnel Productivity Benchmarks

As with any ‘ratio’, personnel productivity is best measured by linking an ‘input’ to an ‘output’. The key ‘input’ we’re looking at here is labour:  the number of people; the cost of those people and so on.   We’re linking it to the output of their activity.  Often this is ‘sales’ or ‘gross profit’. These […]

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