Some results


Increased effectiveness refers to the better business and managerial practices that helps the organisation to achieve its objectives. Overall, business executives found that ABC & M implementation has helped them and the business achieving the following results:

  • Enhanced capability of business performance
  • Internal managerial efficiency increases
  • Customers are benefited
  • Reduction in overall production/service costs
  • Helped identify major cost drivers for each of the products/services
  • Separate costs for each category of products/services
  • Proved to be valuable overhead cost allocation system to identify real costs of products/services
  • Is a strategic cost management system
  • Create more value for customers through identifying major input, output and process elements
  • Get customers to obtain a lower priced product/service
  • Deliver better quality products/services than before
  • Improved total overall revenue
  • Has increased the organisations profitability significantly
  • Given an organisational better financial return in terms of long-term customer satisfaction

By now you have probably either read or heard success stories about how ABC & M models and techniques have helped organisations better understand product/service cost and profitability, and identify opportunities or develop improved performance measurement. Indeed, some organisations have achieved great success as a result of their ABC & M efforts and for these organisations, certainly, ABC & M models and techniques have helped lead management to find ways to significantly improve bottom line profit and returns.

ABC & M models design and implementation can be complex, time consuming and costly in certain instances. However, it is our opinion and approach that the success of the improvement programmes, is to a large degree dependant on some very important key elements, which we endeavour to integrate in every ABC & M project we undertake namely:

  • obtain the full support of the enterprise’s top, senior, middle management and other staff in key positions
  • design a practical approach to fit the organisations needs and objectives
  • evaluate calibre and experience of people involved in the programme
  • provide hands-on support to ensure timely execution, measurable results and on-going improvement