Project Management Accounting: Budgeting, Tracking, and Reporting Costs and Profitability, Second Edition

Case Study: Pontrelli Recycling, Inc.

Let's return to Pontrelli Recycling, Inc., the company that we first saw as an illustration in Chapter 2. Pontrelli Recycling, Inc.'s mission is twofold:

1. Increase the efficiency of recycling usable materials in order to create a better environment for all

2. Create value and a fair return on investment for shareholders

Let us see how the company's mission statement and financial goals, along with the results of maintaining an agile business, become the basis for financial managers to decide how they will operate the company in the coming year and how that will affect the choice and execution of projects. Please note that some of the information contained in the Pontrelli exhibits in this chapter has been slightly altered to accommodate the case study.

Increasing the efficiency of recycling usable materials implies benefits not only for the environment, but also for Pontrelli Recycling, Inc. Pontrelli has focused on information in its business environment, gathering information on the competition as well as new developments in recycling technology. This research constitutes the Awareness Loop of their Agile systems (see the section on Business Agility in Chapter 3). The research has shown that both municipalities and companies would be interested in using the recycling services of a company that was able to provide two benefits:

1. It could cut the cost of recycling for clients.

2. It could increase the range of recycled materials that ...