ACTIVITY-BASED MANAGEMENT

All right, you have been through a formal Benchmarking assessment, and it shows that you are the best in the industry, and everybody else is measuring himself against you. Now, surely, you have the right to be proud of your company. Indeed you do, provided that the actual return from offering your products and services is worth the real cost incurred to supply them. The only way to determine that what you are the best at is worth doing is to analyze those costs by activity rather than by function. And here is where Activity-Based Management comes into play.