Presenting options for raising your organization's level of cost consciousness as a means to promote cost effective behavior across the company.
The new focus on analytics and “big data” is having major changes on organizations, as they strive to focus on niche business areas as a more focused and analytical approach to driving performance improvement. Companies will be increasingly relying on micro-customized products, services, marketing approaches and channels as they seek to improve profitability.
With increasing electronic delivery, organizations are demanding more visual presentation of results, and “instantaneous” information.
A more rigorous approach to measuring and managing costs across multiple dimensions provides greater sustainable impact than across-the-board cuts, or short-term efforts to meet budgets. Central to this is the use of better tools and techniques to measure and – more importantly in my opinion – communicate cost measures in a transparent and actionable way.
Some of our colleagues are disappointed that more organizations have not truly “abandoned” budgets. What is apparent is that while many have not fully abandoned budgets, they have truly begun to understand those other concepts that enrich management practices.
PerformanceManagementEdge.com has posted the first of our four-part series on “Raising Your Cost Consciousness”. In the first instalment, Mitch Max examines some of the root causes of difficulty in managing costs in organizations.