ABM is the use of metrics in the long-term management of productivity, costs, margins, and the positioning and consumption of both labor and technology resources. Most companies have struggled to go beyond the basic ad hoc use of metrics, while leading companies have developed ABM as part of the on-going management process.

Allocations vs. Costing

Many companies have invested in ABC’s only to develop Activity Based Expense Allocations. There’s a specific difference between allocations and costing. Activity based allocations create the same ill-will and user dissatisfaction as traditional allocations. We can help you design and develop ABC’s that give you insight into how your resources are positioned and how they are consumed by customers and the transactions they create.

Labor and Technology Resource Costing

Activity based costs should be developed for all labor and technology resource groups. There should be a common theme across all centers that tie together your plans for use of ABC’s in financial systems; Activity Based Management; as well as the use of these metrics in ad hoc analyses. We can show you designs that have been implemented by some of the largest companies in the world and can be cost effectively implemented by all companies.

Runaway ABC Projects

Are you in a run-away ABC project? Enterprise-wide ABC projects should be completed in less than 12 months. If you can’t finish the ABC work in a timely manner how can you expect to maintain the data over time? We can quickly and cost effectively review your project, identify what’s holding you up, and get you back on track.

Strengthening Professional Management