Activity Based Costing and Management

The Transformed Map of a Recovering Management Accountant

Deming Institute

AUGUST 31, 2017

We call this approach Professional Management, and have developed a system to implement it influenced by Dr. W. Tom Johnson, an economist and self-described “recovering management accountant,” is well known for his early contributions to the traditional accounting profession. Edwards Deming and other great thought leaders.

Management

Management Kaplan Activity Based Costing Deming

A Closed-Loop Strategy Execution System

Six Disciplines

OCTOBER 4, 2011

Breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By creating a closed-loop management system, companies can avoid such shortfalls. Discipline I. Decide What's Important ). Discipline IV. Work The Plan ). Discipline IV.

System

System Balanced Scorecard Execution Strategy

A Closed-Loop Strategy Execution System

Six Disciplines

OCTOBER 4, 2011

Breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By creating a closed-loop management system, companies can avoid such shortfalls. Discipline I. Decide What's Important ). Discipline IV. Work The Plan ). Discipline IV.

System

System Balanced Scorecard Execution Strategy

Health Care Providers Need a Value Management Office

Harvard Business Review

DECEMBER 2, 2015

A “value management office” can greatly enhance an institution’s ability to improve outcomes and costs across the enterprise. ICCI now has five full-time employees with expertise in analytics and project management and three part-time graduate students. Integrate quality data into care delivery.

Health Care

Health Care Management Cost Efficiency

Delivering Higher Value Care Means Spending More Time with Patients

Harvard Business Review

DECEMBER 26, 2014

Unfortunately, the same problem often arises when physicians manage the care of patients with chronic conditions such as diabetes, heart failure, and kidney disease. We learned that health complications in the year following a sub-optimal start of dialysis led to nearly $20,000 in extra treatment costs per patient.

Cost

Cost Class Maturity Compliance

Do You Know What Your Company’s Data Is Worth?

Harvard Business Review

SEPTEMBER 16, 2016

In the same way that banks must constantly balance assets and liabilities, data-laden firms need to move from cyber-defense and fire-fighting toward more proactive management of what could prove to be their most important asset. This means determining not only what EvD means today, but what it will mean for the firm in the future.

Intangible Assets

Intangible Assets Intellectual Capital Corporate Accountability Activity Based Costing

Don't Anesthetize Your Colleagues with Bad Writing

Harvard Business Review

JANUARY 28, 2013

It may be convenient to refer to COGS instead of spelling out "cost of goods sold." Small wonder, too.

VBM

VBM EBITDA Document Depreciation

There's a Way to Win the Showdown with Your Customer

Harvard Business Review

DECEMBER 13, 2012

Product "rationalization" is all well and good, but you've probably already figured out that it puts you, the sales manager, in a serious bind. Then along came a wave of tools such as activity-based costing for figuring out each product's value to the company, and a lot of those offerings got washed away. Let me explain.

Discount

Discount Price Activity Based Costing CRM

Intelligent Redesign of Health Care

Harvard Business Review

OCTOBER 14, 2013

As we move forward we need to be mindful of two principles that must be at the heart of any fundamental health care reform: “no margin, no mission” and “if you can’t measure it, you can’t manage it.” Specifically, the center wants estimates of: The costs of caring for groups of patients with similar conditions. Kaplan and Michael E.

Health Care

Health Care Kaplan Porter Cost

Getting Bundled Payments Right in Health Care

Harvard Business Review

OCTOBER 19, 2015

They have successfully used bundled payments to capture the value created by cost-effectively delivering superior patient outcomes. Their experiences reveal three keys for successful bundling: excellent data on outcomes and costs, proactive management of the patient, and alignment between physicians and hospitals.

Health Care

Health Care Cost Activity Based Costing Metrics

How Hospitals Are Using Patient-Reported Outcomes to Improve Care

Harvard Business Review

OCTOBER 23, 2017

Dr. Niazi’s team has used Time-Driven Activity-Based Costing to prove that this program is cost effective, and is currently collecting data to assess its impact on patient outcomes. Several features of the program have already been expanded to other providers at Mayo.

Report

Report Mayo Health Care Survey

Lessons from Mayo Clinic’s Redesign of Stroke Care

Harvard Business Review

OCTOBER 19, 2018

At the Mayo Clinic Comprehensive Stroke Center Practice, we conducted a project to design and deliver care more customized to the needs of individual patients while reducing cost and resource constraints. Care for these patients could potentially be managed and monitored in the lower-cost NSPCU environment.

Mayo

Mayo Health Care Cost Resources

The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

OCTOBER 22, 2015

These efforts were part of the providers’ quest to increase the value of their care delivery — in other words, achieve better outcomes at the lowest-possible cost. One of the team’s central findings is that TDABC cannot be delegated to the finance function.

Mayo

Mayo Health Care Committee Project

Measuring and Communicating Health Care Value with Charts

Harvard Business Review

OCTOBER 26, 2015

We have found that a radar chart is an effective means to visually depict outcome and cost data simultaneously. Total direct costs (personnel, equipment, and supplies) to the provider for a medical treatment are measured using time-driven activity-based costing (TDABC).

Health Care

Health Care Metrics Cost Activity Based Costing

Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

JANUARY 25, 2012

Tommy was a director and Jane was the Midlands regional sales manager for Egan & Sons, a supplier of doors and staircases to Westmid for 63 years. The lack of traceability and transparency extended to the costs for specialized equipment that was used only for particular products or customers. He wasn't looking forward to this visit. "Oh,

Case Study

Case Study P&L Cost Due Diligence

How to Design a Bundled Payment Around Value

Harvard Business Review

OCTOBER 3, 2013

The Boston Shoulder Institute wanted to enter the negotiation with an in-depth understanding of all its costs over a typical RCR-care cycle, something that it could not learn from its existing costing systems. They began by taking a careful inventory of resource needs and usage for each process in the cycle.

Insurance

Insurance Health Care How To Price

Leadership Digital

The Transformed Map of a Recovering Management Accountant

A Closed-Loop Strategy Execution System

Trending Sources

A Closed-Loop Strategy Execution System

Health Care Providers Need a Value Management Office

Delivering Higher Value Care Means Spending More Time with Patients

Do You Know What Your Company’s Data Is Worth?

Don't Anesthetize Your Colleagues with Bad Writing

There's a Way to Win the Showdown with Your Customer

Intelligent Redesign of Health Care

Getting Bundled Payments Right in Health Care

How Hospitals Are Using Patient-Reported Outcomes to Improve Care

Lessons from Mayo Clinic’s Redesign of Stroke Care

The Mayo Clinic Model for Running a Value-Improvement Program

Measuring and Communicating Health Care Value with Charts

Case Study: When to Drop an Unprofitable Customer

How to Design a Bundled Payment Around Value

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