Archive for December, 2011


Forecast Accuracy: Is Forecast Variability To Blame Or To Be Exploited?

In a recent LinkedIn forum, someone posted the question: “Is forecasting a waste of time? Is it more important to be able to deal with variability than predict it?” A question of this type intends to drive strong reactions. But the question is really comparing two different things. People who like apples will make the […]

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Business Modeling: Should It Be Precise, Accurate, Or Relevant?

In a recent professional forum, we had a great, interactive discussion about the importance of relevance, accuracy, and precision in business modeling. In this case, the business model used Activity-Based Cost principles.

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Cost Reduction: Where to Find Real Cost Reduction Opportunities

As a Financial Controller in a couple of companies, I had a lot of responsibility. In general, I fulfilled my responsibilities well. But there was always one area that I struggled with, cost reduction. In one sense, all expenses went through my organization. Payroll, we paid everyone in the facility. Fixed assets, we knew where […]

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Hidden Money in Your Business Part 4: Customer Value versus Customer Cost

In this series of posts, I have discussed powerful questions to find cost reduction or cost optimization opportunities at an activity and business process level. Then I went on to explore cost reduction opportunities in product overhead. But I have saved the best for last.

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