Value Added Matrix

The term “Value Added Matrix” has its roots in FT Solutions, Inc.’s enterprise-wide approach to project design and implementation in the various areas of compensation, employee benefits, and corporate finance.  This term encompasses any combination of two or more operating or financial programs whose results are susceptible to being measured in financial terms such as increased revenues or improved profit margins.  A good example is the combination of the design and implementation of an Activity Based Costing (ABC) accounting system with one or more incentive compensation programs.  The objective here would be to enhance management’s ability to quantify the actual impact of the incentive plan on specific aspects of operations that might otherwise not be fully illustrated through conventional general ledger accounting arrangements.

The benefit  of this approach should be readily apparent.  The ability to track the impact of discrete programs on other areas of the overall operations gives management the ability to evaluate the effectiveness of various plans and operations over a short time period in terms of dollars and cents.  This ability carries with it the opportunity to respond rapidly when changes are needed to maximize operational effectiveness.  Setting this project in motion is relatively simple.  Client management identifies specific operational and financial objectives and we design a suggested solution for the client’s consideration.

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