How to apply a simple Business, not only financial, Control and optimize your Business - that's the question?
A full analysis using an Activity Based Costing (ABC), Activity Based Budgeting (ABB) and Activity Based Management (ABM) approach it's recommended, but can be time consuming to set up and therefor seen as too costly. Any analysis never should take away priority from the main objective - the daily good business - it must smoothly support it. ABC will identify the many poor business deals (up to 80% in number) and suggest changes for improvement. The administration must be kept at a minimum and support not harm. Don't increase the overhead and don't fall into the volume trap. Large volume doe's not automatically result in a lower cost per volume unit! Every business can improve performance, effectiveness and profitability. Competition is daily learning and that threat or challenge will never disappear. The need for a quick and smart system, easy to use tool or approach giving the management all needed information and knowledge to run, manage, budget, analyse, measure, control, optimize, improve and develope the business is already today a survival necessity. From historical experiences we learn for the future. We need a smart Business Control - an ABC approach!
A few basic, logical, simple but effective 10 steps might help you around:
Turn your present volume and turnover driven management into a result orientated without losing any volume nor turnover!
After your decision to adopt and implement an ABC approach, make a quick overview indicating possible outcomes. Taking external experienced help can pre-calculate using earlier findings and values and hereby define your expectations.
PAny poblems using an ABC? .......Yes many, but also many more possibilities!!! Don't expect any quick results. You must allow the ABC team to understand the business, clean the data capture, sort out the data structure, calculate and analyse results before improving the method and tools for final analysis, presentation, explaining, reporting to use and implement the findings! Use external help? Yes - avoid mistakes done in every earlier project and save Your main asset - Your own Time! At the same time ABC highlights various business and data problems and errors. Using an ABC You will get a possibility to clean and improve your business, set up, systems, logistics, operations, routines and activities.
I am a UK based Business Analysist working in the British Isles, European mainland and in the Nordic countries well experienced within different segments of world wide activities. I am always keen having a developing dialogue with other experts involved in similar operations for mutual benefit. Don't hesitate contacting me if You need assistance, advice or recommendations in setting up Your ABC or Business Control project.