Radical Action for Radical Times: Expert Advice for Creating Business Opportunity in Good or Bad Economic Times

Part II. Where to focus

In brief...

Chapter 3: Cost

• No one sets out to destroy value, but organizations can be complex, hiding the true sources of cost, profit, and value

• Accounting systems were designed for reporting financial statements, not for actively managing the business on a day-to-day basis

• Without a solid understanding of what drives profit, many organizations focus on revenue or sales counts; while targets for these could be achieved, 20 percent of your customers could be destroying up to 400 percent of your profit

• Those you think are your best customers could turn out to be your worst

• Cost-cutting using traditional accounting practices can be counterintuitive, leading to greater losses and ultimate failure

• Activity-Based Management translates ...