Kohl’s Product Value Assessment service combines activity driver data and financial information from your general ledger with employee cost information from a customized Employee Cost Assessment. This provides a complete picture of the value contributed by loan and deposit products.
Our clients use the information from their Kohl Product Value Assessment to identify which products are providing value and which are not and why. Where value/profit issues exist, our detailed comparisons to other financial institutions uncover the source of the problems, enabling management to take actions to resolve the issues.
“The Kohl Assessment identified areas of opportunities in our suite of core products. Using the data from the Kohl Assessment, our Management team was able to collaborate, pinpoint specifics and take action. We are confident this will lead to substantial improvement in the contribution of these products and improved overall membership value."
- Hilary A. Eisbrenner SVP/CFO Space Coast Credit Union
Almost half of all non-interest costs stem from salaries and benefits alone. When factoring in the expenses of supporting these employees, the costs can surge up to 80%. Understanding the exact roles and costs associated with employees presents a significant challenge for many organizations. Kohl excels at accurately identifying and assigning employee expenses to products by utilizing time-focused activity based costing.
Kohl's results include graphical and numeric representations of loan and deposit performance down to the activity level. This enables institutions to identify product value , how it is created or destroyed and why.
Acting on this detailed information enables institutions to improve performance by making specific changes to processes
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Other profitability solutions may be able to provide time and cost information. However, without the comparisons uniquely available from Kohl Analytics you will not know if your time is long/short or your cost high/low. These comparisons enable clients to identify where performance can be improved and where competitive advantages can be levered in the market to enhance returns.
Product Value Simulation Model
- To effectively put product value information to work, Kohl provides a Product Value Simulation Model that facilitates the development and testing of product-related strategies as well as the ability to update important value drivers without doing all of the work of a Product Profitability Assessment.