Yes, absolutely. Both enterprise CPM software platforms and management consulting firms pitch profit improvements as a core benefit—they simply link the balance sheet back to profitability in specific ways.

Here is how each pitches profit improvements:

1. Enterprise CPM / EPM Software Platforms

(e.g., CCH Tagetik, Oracle EPM, Anaplan, Workday Adaptive Planning)

Software vendors heavily pitch P&L profitability improvement alongside asset and balance sheet optimization:

• Lowering Carrying Costs (Inventory & Working Capital): When activity analytics identify bottlenecks that cause excessive raw material or WIP inventory to sit on the balance sheet, clearing those bottlenecks reduces inventory levels. The software vendor pitches this as a direct boost to bottom-line profitability by eliminating holding costs, storage overhead, spoilage/obsolescence expenses, and tied-up capital financing costs.
• Boosting Return on Assets (ROA): Vendors pitch activity monitoring to identify underused plant machinery or real estate. Disposing of or optimizing these fixed assets cleans up the asset side of the balance sheet while immediately reducing depreciation expense, maintenance costs, and facility overhead—directly expanding net profit margins.
• True Customer & Product Profitability: Profitability and Cost Management (PCM) modules show exact cost-to-serve by activity. This helps companies reprice or drop unprofitable products and accounts, improving net income while freeing up working capital tied up in low-margin operations.

2. Management & Strategic Consulting Firms

(e.g., McKinsey, Bain, BCG, FTI Consulting)

Consultants actively sell profit transformation via balance sheet restructuring through frameworks like Zero-Based Working Capital (ZBWC) and Activity-Based Restructuring:

• Unlocking Cash Flow to Fund High-Margin Growth: Consultants pitch that eliminating non-value-adding activities frees up trapped cash from Accounts Receivable and Inventory on the balance sheet. That cash can then be redeployed into higher-margin R&D, debt reduction (lowering interest expense), or acquisitions—directly driving long-term earnings growth.
• Reducing Capital Intensity: Consultants show how outsourcing capital-heavy activities reduces fixed assets and leverage on the balance sheet while lowering fixed operational costs, leading to higher operating leverage and expanding profit margins during growth cycles.

Summary Pitch