Is the profit in law statement a PPL the highest company level is how the company measures is financial

results you know showing the revenue they earned or there we earns expenses and what profit like any
company the owners or shareholders expect to see profit grow every year just as you want your 4 1K or
any other personal investment you may have to recent value profit growth comes from increasing
revenue and keeping expenses under control as compared to the revenues cell the same financial
management concept rolls down to each account so where the companies looking at this high level your
account PL does is specifically for the account you have so it looks at the monthly revenue results from
that account the expenses for your account and the profit which is revenue minus expenses on our
sounds simple but this would be sure one understands the think of it as a giant checkbook where you
put your income of your pay which is your revenued and then track your cheques or fences which if your
expenses get higher than your income then you get into trouble if expenses are higher than you plan
relative to your income you may have left to say for college retirement applications of whatever same
thing here but the profit represents value wrote for owners or shareholders make sense so the pnr
reports on how your caught your account is doing financially and how much profit you are making kind
of like your scorecard alright so So what do all of the different terms mean on that cognizant profit and
loss statement you’re your seat depending on you’re your P&L or income statement you see a variety of
terms it may come up for different programs based on the kind of activity have but they are really 3 key
terms and then I will go into some of those little more but 3 key terms are really revenue which is bill
which is what we bill to the client that can be pretty complicated I want to keep this simple just saying its
basically would be able to client every month expenses which have many line items or categories I will
get to those in a minute and then what Congress and calls they client profitability yeah that’s just the
revenue minus expenses that represents the profit for that account the company doesn’t wants us to
achieve a certain CP or client profitability percentage so the CP percentage is really the key result that we
in delivery should work to achieve at the profit dollars important the revenue dollars etcetera but in the
end X with CP percentage is what we tend to be collectively measured on those accounts expenses are
made up of several different heights but the most important expenses in the cost of labour or staff that
work from your account including support people they allocate their time like packs or workforce
management includes you know the supervisors team leaders team manager anyone who works on that
account or allocation that amount generally labour 90% of all these events on account depending on
your program where that’s not true but the large delivery earlier that’s that’s the case you might hear
the reference of CB about labour cost which is which means compensation and benefits and represents
what most company called loaded everyone benefit cost to go with that expenses for labour and again
that the large travel and entertainment travel is usually a small amount of expanded for each month
usually for the site or program leap or sometimes for packs or others travelling for your account
professional expenses are you between your account hires and outside from that they work for you on
the account such as programming this experience is usually small but may be high if your particular
account to plans on contracting services to deliver what you are what your providing to the client so it
could be if your program delivers have depends heavily on contract services like programmers etcetera
transportation cost you will see that is normally not used the most accounts for some areas we do
reimburse employees for parking or transportation or certain circumstances so that make sure up with
us pretty unique and specific to the account in Realty is an interesting one right so penalty is whenever
we miss a service goal in in our contracts our clients every service goal has a measure were supposed to
meet and if we miss it often enough usually 2 months in a row or 3 months in a row we end up having to
pay a penalty for missing that much and so that’s what this lines for what you say sometimes or even if
you are making all your goals you’ll see usually around a 2% of your revenue expense in that line and the
point is there reserving dollars we are going ahead and working hours in a little cool of money so later
you have to pay out of penalty that comes from that reserver that poor if you go through the whole
program and never end up incurring penalty your you have money in that pull left over then it books to
your profitability at the end of the program yeah yeah so amortization is a little bit interesting uh you
hear about depreciation right appreciation is that go buy an asset and I pay $100,000 for the IRS or the
accounting principle general accepted accounting principles there allow me to appreciate decided for 5
years or 6 months you know so I can spread my $100,000 monthly over that 16 months of bought it all
on crime stopped appreciation amortization similar but if it’s a little different in that its not an asset
persay is is either a supplier supplies or services the way we normally use a cognizant is we do a startup
for client we may incur $500,000 for entire for example in all the transition cost and the the
implementation and all these things you do in the front end and that’s a huge amount of money for
customer or client you have to pay up front so instead easier for the we spread that cost in the equal
monthly mouse over the term of the agreement so if we spend 5500 $1000 there we need to charge that
back to them then we would spread that out over the 5 year agreement for instance on a monthly basis
so that they can pay you know overtime that is referred to as amortization just as an example uh I’ll stop
my head I’ve had they just when I bought large paper supplies are buying 33 months with the supplies it
once I don’t book all that cost of the first month is spread it out of the 3 months which is the expected
time I have for using the paper all those are forms of amortization tell like an installment plan exactly
right so which where we cannot spread the pain out for the client is the idea weight loss lot of there is
we got to charge all that time infra cost represents all of the facility technology and furniture cost for
your program usually there is this thing called menu based pricing which I won’t go into here but what's
happened is over the last couple of years the company has changed to make it easier from a pricing
perspective each location the figure out what the the technology cost the facility cost is support costs all
those things are to run the facility and they told that down to a percent charge through that’s what
sends up in the infrastructure cost and I will tell you right in front if there is some issues around the way
that’s done this now and they worked on it generally your perceive cost is charged by hit count on the
program not actual seats on the program so you may have 100 seats or 150 people you’re gonna get
charged 450 seats worth of cost on these programs because the way the accounting works and and
that’s known and its being worked on but that the cost of determined by finance in some methods that
they use you may say translate items if you do they probably just pretty unique to your program there’s
probably a long list of them that we don’t normally say you are use but that’s that’s the majority of the
ones we could see yeah that's all of these different terms right they seem like a lot to come to to keep up
with so putting my delivery leader had on how should in the river leader think about all this information
how do they digest all this yeah it’s challenging in a suggest not trying to you know it’s kinda like eating
elephant you do one by the time that don’t try to fix it out and it wants the largest experience about far
is the labour experience for the cmdb portion of it so the easiest thing to do is to really focus on that
portion of a PANLLOR manage statement every month is to understand what that amount is and what it
represents relative to your revenues and what your budget it going forward to have and then
understanding how the work you do for your team or your department how does it contribute to that
what is the expectation your expenses so you know so just sort of deciding the best way to make
yourself is to work a bunch of overtime and that’s an easy way to go do it that’s probably going to make
you exceed this see in the budget every month because you work a lot of overtime so they alternative
other other things you can do to get the work done faster better and eliminate or at least reduce the
overtime so you are not having that kind of so its those kinds of on the ground things I think you
awareness but every leader picture yeah So what was driving to that a little bit more because that so
good and the same because it was a labour expense make sense so how do you recommend a leader
goes about that yeah so the the first channel the course is depending upon where you are in in the
management structure or as I’d like to call it humid you may or may not be getting exposure to the the
P&L or income statement every month almost all the very first thing I would ask is it you get with you’re
your program manager your site manager whoever gets that information and and start asking for them
to share that with you what your budgets are what your results are and in developing an understanding
of what work you do everyday with your team and how it as a part of that total cost what your
contribution is how you can help improve or least make the goal so getting visibility to that and
understanding your contribution is the first most important day so you know it is important to know how
to read the whole thing about focusing on just CB the labour cost you’re managing 85% or more of the
cost of the program once you do that so I think that I think that parts most important you know some of
the elements around the same b for drill down into or the program may have been applied for 8 year old
to have a certain amount of pays so key on that role may have been budget and $50 now for 15 people
for example so we said the program up we want to get experience bring people for the programs you
have more experience problem so people come in at 17:18 $90 now so learning to be aware of those
things is very helpful knowing most of the programs are saying have no overtime today is that necessary
what can you do to help reduce their part so those are the kinds of things that are helpful knowing what
your role budget budget regional people that only person what they may I know what the problem we
have is when you get the apple of the FBM that kind of detail may not be on a for first basis to have to
work with your local program better man dollar that you spin beyond what your budget was or what the
forecast was I would ask the you always be looking for what you can do to offset there or reduce cost in
the end there are always things you can do to improve and some of those things are reduced to handle
time just cycle time or through put make sure the next time you hire somebody there hard on the
budget to come out of sound but you know just getting user experience and they wonderful don’t like
your life easier bring them over there great then you just busted your budget and you know and how
you got offset that if you’re gonna do it so you are getting a cost mentality is really in cost management
mentality really poor credit when the price you set up it seems a certain numbers down so make sure
your staff that this level or below that number and this is an issue because we know that a lot of times
uh staffing plans of these programs were not calculating with proper shrinkage etcetera so the first first
thing to know for your particular area is if your team leader manager what was the headcount that was
budgeted for that area what how many people should you have on that program what’s causing you to
have the number of people you have if it’s about budget is it because it was pricing correctly you know
they have calculated a 15% total shrinkage and realities you are going to 25 to 30% okay fine then work
with your manager to figure out what your head really should be and then find ways to make sure you
managing inside that Yadav tell your specific things you can do to make sure you help me posted those
are much easier visible things to be kind of deal with it through make sure that your service goals are
met consistently and that doesn’t mean just you know you looking and how you can get sort of proactive
visibility and how you’re progressing against the service going by the way goals most often are monthly
but summer weekly in summer actually daily uh but if you can look at how you are doing in your service
code.

Yeah so you know how to manage if you got a big believer with a further down you can pass that
information to the team leader the better manager can be is a overall program factors that is one of the
big changes but every every dollar that you spend beyond what your budget was or what the forecast
was I would ask you always be looking for what you can do to offset there or reduce cost those things are
in reduce the handle time reduce the cycle time or through poet make sure the next time you hire
somebody get high hello wonderful bring them over there great so you are getting a call make sure your
staff is this level or below that number and this is an issue with that we know that a lot of time stamping
plans and programs are not calculated with proper shrinkage etcetera so the first first thing to know for
your particular area is if your team leader team manager what was the head count that was budgeted
for that area what how many people should have on that program called you that you have with above
budget is it because it was pricing correctly you know they have calculated up 15% total shrinkage and
really are you going to 25 to 30% well fine then work with your manager to figure out your hiccup target
really should be and then find ways to make sure you managing inside that hit counter those are specific
things you can do to be sure you’re helping me much easier visible things you cannot be with so making
sure that your service goals are met consistently and that doesn’t mean just you know what looking and
how you can get sort of proactive visibility and how you’re progressing against the service go and by the
way service goals most often are monthly but some are weekly in summer actually daily but if you can
look at how you are doing in your service scope.