Activity Based Management: Improving Processes and Profitability - Chapter 4, Frameworks for Measurement and Improvement

Topics:
Balanced Scorecard,
Benchmarking,
Strategic Management Tools
Tags:
Activity-based Management,
Software,
Pricing,
Measure,
Marketing,
Managerial Accounting,
Management,
Framework,
Financial Accounting,
Finance,
...
Source:
Better Management.com

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Overview: Although ABM can be used as a stand-alone approach to understand processes, product and customer costs and profitability, it provides a more powerful means of decision support if it exists as part of a larger framework of measures. Over a number of years a number of frameworks have been developed, each endeavouring to bring a more rounded perspective on the business and a reduced emphasis on the previous domination of financial measures. Although traditionally profit has assumed the dominant role as a measure, the many means of its attainment are recognised as being much more varied and complex to measure and control.

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