Archive for August, 2011


Strategic Business Modeling: Part 1

It is hard to drain a swamp while you’re fighting off alligators. Often business managers are so embroiled in day to day decisions that they do not find time to step back and plan. Planning goes by many names; we’ll call it strategic business modeling because it is so essential to the business. Why plan? […]

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Survival Guide for Management Initiatives

Your CEO has just announced a new management initiative. He just finished explaining his vision and strategy and how this initiative fills a critical gap. He said to expect sweeping changes as the company uses this initiative to become oh so close to your existing customers and to welcome hordes of new customers. Profits will […]

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Sensitivity Training for Activities: Part 2

In Part 1 of Sensitivity Training for Activities, we expanded the classifications of activities to recognize activities in the service sector and service components of manufacturing businesses. We added Order and Customer classifications to the previously defined Unit, Batch, and Product classifications. We’ve kept the Business Sustaining classification for many other activities. We affirmed the […]

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Sensitivity Training for Activities: Part 1

We’ve all been to sensitivity training to recognize, appreciate, and potentially take advantage of the diversity inherent in business and our workplaces. Another form of sensitivity training concerns activities we do every day in business. In early Activity-Based Cost literature we find discussions about the level concept. However, this early literature concerned product related activities […]

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Teams Have Responsibility for Idle Capacity

Years ago, I joined an established semiconductor firm. The firm was constructing a new manufacturing facility. In the industry, this is a wafer fab in which to make electronic circuits on silicon wafers. Wafer manufacturing facilities are enormously expensive. The decision to build the facility was made when times were good and wafer manufacturing capacity […]

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