For organisations the fundamental equation is about turning inputs into outputs as efficiently as possible. Therefore it cannot be sufficient to concentrate solely on what the cost of inputs are.
Activity Based Management
Our approach to driving down cost or increasing net revenue does not sacrifice efficiency. We use Activity Based methodologies looking at what and how things get done in an organisation. This is extremely useful, providing insight and showing how efficient you are at meeting your goals. Activity is analysed between that which supports “core” activities (what you are really all about), “support” activities (those that support core) and “diversionary” activities (waste). Diversionary activity can amount to as much as 40% of all activities and so represents a huge opportunity for improvement.
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