Activity-Based Management
By APQCJanuary 1, 1996
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- 75 pages
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Discover how leading organizations use activity-based management (ABM) to improve their processes.Learn how best-practice organizations utilize the full value and potential of ABM information to implement ABM technology and measure results in Activity-Based Management.
KEY FINDINGS
ABM Best Practices Model
- The development of the ABM Best Practices Model to create a structural framework to understand best practices in the development, application, and use of ABM.
ABM Value Cycle
- The development of the ABM Value Cycle that specifies 16 frequently used applications of ABM information. The study consolidates the benefits and value of these applications into three areas: process related, decision making, and performance measurements.
- Most of the time the methods and techniques were adapted to the specific requirements of the best practice companies. Each organization insisted on a common language that could be understood across the organization.
Management Commitment and Priority
- The ABM initiatives at each of the best practice companies had high visibility and were important to the success of the organization.
Cost Efficient, Reliable, and User-Friendly Systems
- In general, those organizations using ABM information in the applications of process improvement, cost control, measuring operational performance, and day-to-day operational decision making tended to report ABM information more frequently and in more detail.
Culture that Supports Change
- Best practice companies manage their internal environment by nurturing a culture that supports change. Teamwork, trust, and a common vision were evident at each of the best practice companies.
Emerging Management Tool
- Every best practice company indicated that it had not fully implemented ABM and had a long way to go. The lesson here is that we must continue to "push the envelope" in terms of understanding the use and application of this management tool.
Topics: Benchmarking, Quality, Process
Processes: 12.1 Create and manage organizational performance strategy, 8.0 Manage Financial Resources
Type: Reports and Books
Publisher: APQC
Processes: 12.1 Create and manage organizational performance strategy, 8.0 Manage Financial Resources
Type: Reports and Books
Publisher: APQC
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