Revenue Forecast Variance Root Cause Analysis
Mar
2018
Problem / Purpose
The company experienced a large Q1 revenue shortfall despite having a record sales year the prior year. Leadership needed to understand the disconnect between forecasted and actual revenue.
Solution
Performed an ad hoc revenue breakdown by source and client segment. Identified that a recent Pricing strategy shift led to significantly lower average bill rates for new clients, dropping the overall average by over 20%. The change had not been forecasted, leading to the financial gap. Provided insights to the CFO and highlighted the need for proactive forecasting tied to future pricing strategy changes.
Key Achievements / Impact
Revealed the underlying cause of a major financial variance. Drove awareness that Pricing strategy shifts must be accompanied by forecasting models. Informed executive-level discussions and influenced cross-team accountability in future pricing changes.
Key Technologies / Tools Used
Microsoft SQL Server (MSSQL), SQL, Excel, Data Analysis, Root Cause Investigation
Role
Manager, Insurance and Profitability
ProService Hawaii