The Ledger
Curated content foranalytical business leaders
SF Magazine: ABC and Value-Stream Costing in Tandem
“Like in most areas of life, it’s generally good to have a lot of choices in accounting. Take, for instance, activity-based costing (ABC) and value-stream costing (VSC), which can be viewed as two alternative approaches to obtaining accurate cost information in complex production and sales environments. You would think that companies that adopt VSC aren’t likely to also have ABC systems. But that isn’t necessarily the case: A 2012 survey of 368 facilities employing Lean production found that 62 of them—or roughly one in six—reported a relatively high use of both ABC and VSC. Those same companies also reported the highest level of performance improvement from Lean initiatives. Clearly, these organizations weren’t treating ABC and VSC as alternatives: They were using the systems in tandem.”
CFO Magazine: 4 Tips for Cutting Indirect Spend
“In light of price inflation, companies are weighing their options for cost transformation, said Mahoney. Cost transformation is about simplifying and refocusing the organization. It involves a soup-to-nuts analysis of any action taken by a company and deciding: Is this something we should build? Is this something we should deliver internally, or does it make more sense to buy or outsource to an external supplier?”
Harvard Business Review: Why Becoming a Data-Driven Organization Is So Hard
“Right now, the biggest challenge for organizations working on their data strategy might not have to do with technology at all. In the latest NewVantage Partners annual survey, which tracks the progress of corporate data initiatives, corporate chief data, information, and analytics executives reported that cultural change is the most critical business imperative.”
CFO Journal: Take Five: Steps to Building a Strategically Adaptive Enterprise
“Companies characterized by nimbleness, scalability, optionality, and stability can respond opportunistically to environmental shifts and navigate periods of disruption and crisis better than their competitors. Enterprises with a high capacity for change more consistently achieve superior financial performance and valuations compared with others in their industry. Superior capabilities for change enable exponential enterprises to adapt advantageously despite challenging operating conditions, sustaining their ability to win and to deliver value to stakeholders.”