What is PōDR?
If Eric Fleury had $2 for every time someone asked, “What the heck is PoDR?”, he’d have almost as much money as he would if he had $1 for every time someone asked him if he is related to Theoren Fleury.
PōDR is pronounced PO (long ‘o’ as in po-lice) + DER (as in or-der)
For PōDR Accounting + Business Intelligence, PōDR stands for Point Of Dynamic Returns. In this sense, PōDR is a powerful and positive concept. PōDR Accounting + Business Intelligence works with its clients to achieve dynamic returns (i.e. characterized by continuous progress).
On the other hand, an economist will tell you that P.O.D.R. is actually an acronym for an economic theory known as the Point Of Diminishing Returns. This theory is useful when forecasting input and output levels. Basically, what this law states is that at a certain critical point, producing one additional unit of output will result in a situation where the marginal cost of producing the incremental unit exceeds the marginal revenue that the unit will generate. The end result is that the overall profitability of the organization is adversely affected at this point.
It is very important for entrepreneurs and managers to be aware of their Points Of Diminishing Returns. Companies must stay within the boundaries of these points or find ways to shift the points so that output levels can be increased without negatively affecting overall profitability. A Point Of Diminishing Returns is associated with an organization spinning its wheels and wasting its time and resources. Companies who have hit a Point Of Diminishing Return are not generating maximum returns on investments nor are they operating in the most efficient manner.
By combining strategy with analysis and technology, PōDR enables clients (i.e. supplies with the means, knowledge, or opportunity; to activate) to identify their points of diminishing returns and implement plans to generate dynamic returns instead.
