On the most recent episode of Performance Management Edge, Mitch answers a question by Safdar Imam: What is the role and importance of identifying correct “Activity Drivers” and “Resource Drivers” in planning/ managing profitability in service industries? This turned out to be too complex for one single response, and I chose to break it into a two-part response, with the first on Resource Drivers and the second on Activity Drivers. I’ll update when the second part is released. For both, I rely on the underlying framework of the CAM-I Cross.
I make the case that the use of fixed resource assignments certainly has its place, but for many organizations, it is critical to look at Time-Based assignments to more dynamically reflect the frequent changes that occur in many parts of service companies.
