We must collect all needed data and transform it into useful information before we can understand and make needed changes to our cost issues.
Setting up the measurement systems and understanding what the data is telling us, becomes critical to any kind of cost control effort.
Waiting until the financial numbers arrive, usually is too late for us to be able to use the data as an effective cost control methodology. Measurements that are closer in real time are required, if the data is to be of any immediate use.
It is easy for a situation to get out of control before the end of the financial reporting cycle. Knowing the accuracy and precision of the data becomes a concern as these real time measurements are established.
Efforts to implement lasting cost control measures seldom maintain their effectiveness when done in isolation. These measures need to be a part of an overall organizational focus.
When there is synergy of the three elements of Strategy, People and
Systems, it is more likely that cost control efforts will become a part of the basic culture of your organization.
Once embedded into the culture, efforts to make cost control an ongoing part of the organization, is easily enforced as measurements are tracked.
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