Master the PRIMES

Leading Blog

Fixing involves corporate improvement programs like Activity Based Costing, Six Sigma and others.”These “Master the Primes and you can master leading groups,” says Chris McGoff.

The Transformed Map of a Recovering Management Accountant

Deming Institute

Manage a Living System, Not a Ledger” ), Johnson explains that better cost information, such as activity-based costing (ABC) , will not provide a long-term method of reducing manufacturing costs.

Trending Sources

Delivering Higher Value Care Means Spending More Time with Patients

Harvard Business Review

Pressuring physicians to maximize the number of patients they see and minimizing the time they spend with each is one of five counterproductive mistakes that health care providers often make in trying to reduce costs — the subject of a recent article in the Harvard Business Review.

Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business Review

Zero-based budgeting (ZBB) is elegantly logical: Expenses must be justified for each new budget period based on demonstrable needs and costs, as opposed to the more common method of using last year’s budget as your starting point, then adjusting up or down.

Don't Anesthetize Your Colleagues with Bad Writing

Harvard Business Review

But if you develop a strong habit of using active voice, you'll largely prevent convoluted, backward-sounding sentences in your writing. It may be convenient to refer to COGS instead of spelling out "cost of goods sold."

VBM 6

A Closed-Loop Strategy Execution System

Six Disciplines

Strategy implementation, in turn, links strategy to operations with a third set of tools and processes, including quality and process management, reengineering, process dashboards, rolling forecasts, activity-based costing, resource capacity planning, and dynamic budgeting. In their 2008 book "The Execution Premium: Linking Strategy to Operations for Competitive Advantage" (Harvard Business School Press), Harvard professors Dr. Robert S. Kaplan and Dr. David P.

A Closed-Loop Strategy Execution System

Six Disciplines

Strategy implementation, in turn, links strategy to operations with a third set of tools and processes, including quality and process management, reengineering, process dashboards, rolling forecasts, activity-based costing, resource capacity planning, and dynamic budgeting. In their 2008 book "The Execution Premium: Linking Strategy to Operations for Competitive Advantage" (Harvard Business School Press), Harvard professors Dr. Robert S. Kaplan and Dr. David P.

Measuring and Communicating Health Care Value with Charts

Harvard Business Review

Some leading proponents of health care reform have argued that the goal of any health care system should be to deliver the most value to patients : the outcomes achieved for treating a medical condition relative to the costs incurred over a complete care cycle. HBR STAFF.

The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

In the last six years, a Harvard Business School team has worked with dozens of health care organizations to help them understand the true costs of their treatments for many medical conditions. measure both costs and outcomes for comparative analyses of care variation.

Intelligent Redesign of Health Care

Harvard Business Review

The health care industry has survived economically by cross-subsidizing margin shortfalls in one activity with the revenues generated from others. Specifically, the center wants estimates of: The costs of caring for groups of patients with similar conditions.

How to Design a Bundled Payment Around Value

Harvard Business Review

The traditional fee-for-service reimbursement model is widely acknowledged to be a major driver of escalating health care costs. It also penalizes cost reduction since eliminating unnecessary procedures leads to lower reimbursements. Estimating Costs.

Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

The Power of Customer Costing. With careful study, Tommy had figured out that the company's costing system had made it blind to its own operations: It allocated factory overhead to products as a percentage markup over direct labor costs, and corporate overhead as a percentage of sales. Thus, the company could not accurately identify its costs for serving individual customers or for designing and producing all the new products it had recently brought to the marketplace.

P&L 3

There's a Way to Win the Showdown with Your Customer

Harvard Business Review

Then along came a wave of tools such as activity-based costing for figuring out each product's value to the company, and a lot of those offerings got washed away. And for good reason: Some of them were costing your company a bundle and weren't paying for themselves. You've reduced your company's cost-to-serve. Product "rationalization" is all well and good, but you've probably already figured out that it puts you, the sales manager, in a serious bind.