Name: Renzo N.

Melliza Date: April 30, 2018

Subject: MAS 2 Time: 5:00 – 6:30

The opportunity to change a cost center into a profit center exists for all
investment management firms. Unfortunately, there is an entrenched, long held
belief that the Front Office acts only as a Profit Center and the Middle and Back
Office are Cost Centers. Being employed in a cost-center department in any
organization, brings an uncomfortable feeling to any employee that he or she is just
another overhead to the organization. Me, assuming that I will be employed in a
cost-center department which is the accounting division as an accounting staff will
sure brings me the same feeling. But the challenge left behind is that how to make
your working department (Cost-Center division) to be profit-center or be able to
become a profit-producing strategic asset?

After reading the article “Be A Hero: Turn A Cost Center Into A Profit Center”
by Larry Myler it made me realize that there are ways to make a cost-center into a
profit center like the 3 strategies he suggested to his article. But what really
intrigues me is the “Kill Overhead strategy” since I think this can me simply done
and more applicable to any organization. It’s simple but practical and effective. Since
every dollar saved increases the value of your department by lessening the drain
and burden of overhead.

But, back to the question, how can I make my working place (Cost-Center)
into a profit center? A simple approach to creating an additional Profit Center can be
done through a tiresome, time consuming and tedious approach: Documentation.
Well, in my opinion, a proper Documentation leads to bring profit to the
organizations. Documents are important to any organization, and since accounting
department is one of the sources of important documents in any organization and
papers is one of the necessary costs to produce those. I propose that a simple
recycling of old papers could bring more revenue to the organization since in a
practical sense that a less expense means more profit to the entity.