Maximizing Return on Invested Capital, That's what matters?
There are three major issues; efficiency, good practice and strategy.
Efficiency, the best methodology to diagnose business efficiency is
Activity Based Management. There is a say,..
”if you want to know – follow the money”.
Activity Based Management does just that. It builds business model,
as it is, based on how the money (expenses) flow through that business.
Based on that deficiencies are identified and can be addressed.
Major gains come in froms of elimination of resources that are not contributing
to business operations, elimination of idle and consistently idle capacity and
elimination of unprofitable transactions.
These are always very substantial benefits.
Set of rules of good practice. These focus on internal and external
business processes. Benefits are short, medium and long term.
Strategy addresses longer perspective, usually 3 to 7 years. It is an
action plan, portfolio of projects to secure present and future business
health and good standing.
