Activity Based Costing / Management

Activity Based Costing is crucial to allowing managers to determine which products or services make or lose money. Conventional cost allocations often depict an unrealistic view of profitability distorting figures by hundreds of percent. ABC is designed to provide profitability information to your organization's product/service market matrix.  At ADC we have taken this even further by coupling this with your direct material spend allowing you to view your total cost of operations.  Our Total Cost Management view provides leading edge practices including "what if" modeling, forecasting, variance reporting and impact analysis.  After learning about the specific products, services or customers that make or lose money, managers can choose an effective course of action to improve profitability and maximize operational processes.

ADC has developed a strategic, operational approach to implementing Activity Based Costing.  It facilitates not only an implementation of ABC but also the development of the mechanisms necessary to support its operation on an ongoing basis.  The tools we use, such as the Cost Flow Diagram and the seven step approach to implementing ABC developed by our partners FMI, are accepted as the most effective system design mechanisms in the industry. These tools and methods have been implemented by leading organizations of every size in almost every industry sector.

Balanced Scorecard

Scorecards, including the "balanced scorecard", provide a framework that translates strategic objectives into operational performance measures. By evaluating and balancing financial and non-financial measures, we develop a better understanding of organizational results and the elements that contribute to the execution of strategy. Measurement drives action, which leads to the effective attainment of organizational goals. 

Some of the greatest challenges to facing scorecard projects lie within the culture and environment of the very same organizations that would derive the most benefit from their implementation.  Because of this, scorecards are best developed internally by those who are most familiar with corporate vision, strategy, and culture.    ADC has developed a facilitative approach to scorecard implementation.  Our consultants serve as the catalyst to streamline and facilitate.  Through consulting, team selection, process facilitation, training, and the deployment of best-in-class tools, ADC provides the objective third-party guidance and support necessary to rapidly and cost effectively deploy scorecard solutions.

"If you don't know where you are going, you're probably not going to get there."   - Forrest Gump

"You do not have to do this.  Survival is not compulsory." - Dr. W. Edwards Deming

Activity Based Budgeting and Planning

Historically, budgeting has been a cyclical "negotiation" process within the enterprise.  This can result in a near random allocation of resources that are not necessarily in alignment with the strategic objectives of the company as a whole.  Activity Based Budgeting and the application of business simulation tools ensure that resources are correctly assigned in order to meet your goals and objectives. It ensures transparency in the budgeting and planning process and finally ties together strategic planning, financial analysis, the budgeting cycle and reality.

Our consultants work with your internal team to apply our best practices to provide measurable results.  Our toolset allows focus to be placed on key business decisions and less on the development of methodology or processes.

Process Improvement

The performance of an organization is the sum of the performance of its processes. All measured performance variables, whether quality, financial, capacity/throughput, time, risk, or other, occur within the context of the organization's processes. As a result, we can analyze, create, understand and manage performance through a "Performance Architecture", describing the performance logic link and integrating an organization's processes and activities.

Whether your organization's performance need is assessment/audit, documentation, planning, analysis, improvement, design or redesign, implementation, measures, management, monitoring or control or any combination of these business imperatives, our seasoned consultants will support your assignment, working independently or facilitating cross-functional work teams. Our projects feature well-articulated, critical-business-issues-driven, results-oriented deliverables, clearly defined in advance. Our associates can work at the strategic, organizational, systems, process or job level as required, but, more importantly, we work at all times with an integrated perspective, subject to the scope and demands of each individual project assignment.

Strategic Cost Management

Strategic Cost Management pulls together all the practices in performance improvement, ABC, Financial Analysis, etc. to enable managers and financial professionals to analyze true cost consumption on a product-by-product, service-by-service, customer-by-customer basis. We provide insight to make better strategic and operational decisions. The principles developed by our services form the basis of a strategic cost management method and/or system that can be used to align cost management behavior with strategic objectives.

Financial Analysis

Organizations exist to add value to their stakeholders. Value creation is key to the long-term success and growth of any organization. To succeed in the long term you must know whether you are creating stakeholder value or destroying it. Companies which create higher value outperform those companies which destroy value in terms of share price, net income, free cash flow and investment.

Our financial analysis experts utilize sophisticated financial analysis tools, including cash flow return on investment, organization-wide value analysis, value analysis by product and customer segment and Economic Profit. This type of analysis can help your organization better understand where you create value and where you destroy value, and then set about increasing your ability to create greater value.

Technology Integration

Prior to application design, our consultants will assist your organization in process re-engineering efforts or best practice analysis that will drive your company to the next level and allow you to more effectively compete in your industry. Once we have a full understanding of both your business process and needs, we will work with your company, your managers and your end-users to select the best technologies to meet your business challenges.

	Our Business Consulting Solutions include:
	Application Integration to support Merger & Acquisition activities Activity Based Costing & Balanced Scorecard Cost Justifications and Cost / Benefit Analysis Process Management & Financial Analysis eBusiness Execution & Transformation IT Value Capture Long Range Information Systems Planning Proof of Concept Target Costing & Quality Management Planning and Budgeting Software Selection

At ADC, our commitment to your goals does not end with the installation of your new software application. After delivering your custom system, ADC trainers are available to develop strategies and materials for training your entire user-base.

From business processes to application design and complete training programs, ADC has the personnel and the expertise to assist your organization in getting the most out of what technology has to offer.