The professional management of the company should be based on believable metrics that form the basis for insightful analytics that are used in the proactive management of the business. Clear metrics that show results by line of business, market segment, product and customer are critical to the professional management of the business. Developing the metrics cost effectively is the first step. The end game is getting middle and senior management to embrace the results and use them in planning and executing on a consistent basis. read more
Financial systems that calculate and report profitability should be understood and embraced by the users of the information. Why is it then that so many business managers are unhappy with the results and unwilling to use them? The true measure of success in implementing Profitability and Performance Management systems is the use of that information by middle and senior management in the proactive management of their businesses. read more

Many companies have developed a form of expense allocations called "activity based allocations". They are investing in Activity Based Costing (ABCs) but not receiving an adequate return on that investment. ABCs are uniquely different than allocations, more hard hitting, and are easier to develop and maintain. Leading companies are using ABCs as the foundation for usage-based expense accounting in their profitability systems; as the foundation for Activity Based Management; and, for ad hoc analyses. read more
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 more