Milosh Ivanovic – Principal Consultant
Milosh has an extensive background in all key aspects of financial modelling and cost and pricing methodologies and know-how, based on over 30 years of experience developing costing/pricing solutions and bespoke financial models for blue-chip ASX publicly listed companies and Queensland government departments.
Milosh has worked across many major industry sectors including Queensland State and Local Government authorities, IT&T, transport, banking, manufacturing, higher education and numerous service sectors. Milosh specialises in the following areas:
- Activity Based Costing (ABC) models and management solutions;
- pricing of products and services;
- analysis of corporate cost structures;
- development of Key Performance Indicators;
- development of bespoke financial, costing and pricing models; and
- recommendations for improvements in business efficiency and operational performance.
Milosh is currently the Founding Director of The Pricing Solutions Group (operating since 1996), which is a niche costing/pricing/financial modelling specialist service based in Brisbane. Milosh is also the Founding Director of BARD Asset Co, IP owner and developer of a best-of-breed cloud-based budget, planning and forecasting application called pro4caster, based on his 30+ years of expertise in this niche area.
Bespoke Financial Modelling
Milosh has extensive knowledge and skills in developing advanced bespoke financial models covering the following broad areas:
- Financial Modelling of current business operations (As Is), and future business states (To Be);
- Scenario Modelling incorporating multi-variable modelling for gauging impacts of changes to business inputs and outputs;
- lowest level (bottom-up) financial modelling utilizing transactional data or highest level (top-down) allocation models;
- incorporating Resource and Capacity Planning within Financial models; and
- development of financial and non-financial/operational Key Performance Indicators.
A sample of the bespoke financial models successfully implemented includes:
- Developing comprehensive financial and resource planning models for the management, administration and reporting of various Suncorp technology platforms, including their new Core Banking Platform and program-wide Capacity/Resource Planning;
- Developing and enhancing the QLD Department of Health’s Healthcare Purchasing Models (HPMs) underpinning the funding of the entire Hospital and Health Networks for the State of Queensland;
- Developing extensive financial and costing models for evaluating the viability of the existing QLD newspaper distribution business for News Limited; and designing the new post-consolidation financial and costing models supporting the tender process associated with the proposed new distribution territories;
- Developing a full financial and traffic modelling solution for RiverCity Motorway in Brisbane including debt refinancing and servicing; capital expenditure planning; tax depreciation scheduling; management of all general reserve accounts, loans and leases; interest rate hedging and swaps; calculating of NPV of future cash flows; calculating company tax obligations; calculating operating cash flows, account cash balances, operating EBITDA, taxable income and NPAT;
- Developing a comprehensive capital asset replacement model including providing varying Average Annual Asset Consumption (AAAC) methodologies to calculate replacement cost/fair value; rating of all current assets for prioritization of asset replacement program; and providing scenario modelling for changing asset cost inputs (such as indexation, level of maintenance spend, and one-off capital injection options); and
- Developing a comprehensive Cost Recovery Model allowing for the allocation of annual operating budgets across the services provided by the client to its customers. The cost recovery model allocated budgeted resourcing costs (labour, supplies, overheads) across the main output and activity structures to determine the direct and indirect cost pools. The indirect cost pool was then further reallocated to the direct (cost recoverable) cost pools for determining the appropriate fees and levies for the financial year. The cost recovery model evaluated available capacity (supply) against budgeted and forecast demand for services, and calculated the level of backlog activity (dollars and resources) to clear the excess demand in a set period. The client was able to run various scenarios for changing the proposed annual fees and levies as well as the backlog planning.
Bespoke Financial Budgeting Solutions
Milosh has utilised his extensive knowledge of the budget build process and the data structures underpinning a budget model, while incorporating the Pareto Principle to streamline the development of new processes, to provide effective bespoke solutions for developing sound and robust financial and operational budgets and forecasts. The majority of the bespoke solutions use standard MS Excel and MS Access database applications including:
- Developing a comprehensive solution for Brisbane’s PA Hospital to build detailed annual budgets for all labour and non-labour expenses, allowing for:
- the uploading of financial and non-financial historical data;
- the building of detailed labour rosters (24/7/365) for all employee categories to calculate labour budgets;
- the building of comprehensive non-labour expenses budgets;
- providing a comprehensive suite of performance indicators; and the
- administrative uploading of budgets into QLD Health financial systems.
- Developing a robust labour costing model for QUT’s Faculty of Built Environment and Engineering allowing for the uploading of financial data and position profiles; reforecasting labour expenditures for the remaining budget periods; providing management with financial reporting by portfolio/school performance to budgets;
- Developing a robust capital and operational budget model allowing for setting of financial and resourcing targets at the branch levels, then refining the targets down to cost centre levels for extrapolating of all budget elements (revenues, BAU operating expenses, non-BAU expenses, capital and FTE) to set strategic targets. The budget model also allowed for bidding of additional resources and funding between the branches with relevant risk assessment criteria.
Enhancing Organisational Costing and Pricing Capabilities
Milosh has undertaken a number of costing and pricing implementation programs with blue chip and government agencies to enhance the organisation’s capabilities in those key areas. Some of those successful implementations include:
- review of cost-estimating and pricing systems across Boeing’s defense businesses with charter to enhance pricing capability; developing new Pricing and Costing Rate Books for new business bidding and ongoing business pricing;
- developing a dynamic and flexible Activity Based Costing solution using off-the-shelf ABC product for Telstra’s Service Operations division for providing accurate product unit costing, and costs of activities and processes forMessaging, ISP, ASP, Web Hosting, Web Portals, Systems Management, and Internet Data Centre services. Milosh has also developed a bespoke Predictive Cost Model for new products and calculating operational and financial impacts of changes to market conditions;
- managing the implementation of the New Tax System (introduction of GST) throughout the Serco Sodexho ADF contract business encompassing:
- the identification of all cost savings resulting from the removal of indirect taxes and other legislated tax-related changes;
- renegotiating all pricing contracts with the ADF; and
- conducting a full post-GST review to monitor impact of GST on Serco Sodexho businesses.
- introducing Activity Based Costing into Toll North’s Queensland businesses to provide a mechanism for the costing of current business processes in both the rail and road operations including:
- refrigeration, FCL and LCL businesses;
- developing Profitability Models incorporating branch, lane, customer and industry views;
- identifying profitable and unprofitable customers, freight types and industries, to assist Sales and Marketing in targeting viable market segments and re-negotiating of unprofitable contracts; and
- assisting operations in removing nonvalue-adding activities and re-engineer business processes.
- conducting an Activity Based Costing Scoping Project for the introduction and implementation of an Activity Based Costing (ABC) system at Brisbane City Council’s City Fleet operations;
- reviewing the internal charging regime relating to transfer pricing/charging for transactions occurring between programs in Queensland’s Department of Natural Resources;
- applying ABC techniques to Queensland Government’s Goprint business to determine product, service, customer and group profitability;
- developing Profitability Reporting for the Branch Consultants network of SUNCORP’s Retail Customer Service Business Unit in QLD and SUNCORP’s remuneration program (incorporating productivity and profitability benchmarking) for its branch and teleservice distribution channels; and
- developing and implementing new costing/pricing and financial modelling systems with Caterair Airport Services (now Qantas Flight Catering) enhancing the accuracy of all pricing for contract tenders and increasing the bid success rates from 15% to 55%.
Consolidating Data For Improved Business Performance
Milosh has undertaken significant reviews of organisational data capture and reporting capabilities to streamline the processes and remove duplication and inefficient processes including:
- Consolidating the numerous disparate data sources in the Queensland Government’s Aboriginal and Torres Strait Islander Housing (ATSIH) program and Housing Finance into a suite of integrated solutions allowing all users a single, central access point to various applications core to the operations of the program including:
- Capital Works Reporting;
- Cash Flow Forecasting of grants expenditure to 34 Indigenous Local Councils;
- reporting on ATSIH-owned rental housing stock;
- reporting on tenancy of ATSIH rental housing stock; and
- administration of the Department’s 5-year capital grants program to the 34 Indigenous Councils for construction and upgrade of housing needs in those communities.
- Centralising various data sources into a single ‘data hub’ for Queensland Investment Corporation providing its currency and foreign exchange traders with a solution for reporting on current investment positions and allowing for rebalancing of funds across product portfolios.
- Bachelor of Economics (University of Sydney).