Library

Books

The following books are a great reference for anyone wanting to commence an Activity-Based Costing implementation.  Also included below are links to books on Budgeting and Planning and Process Management.

ABC Primer
Authors: Gary Cokins, Alan Stratton & Jack Helbling

This document, written with a clear, informed understanding of what ABC is all about, is based on real implementation experiences.  The "Three R's" now revitalizing the way business is conducted in the United States are Reengineering, Reinventing, and Redesigning processes.  Traditionally, accounting systems are not designed to deliver managerial information.  Activity Based information significantly boosts the value and utility of financial data for decision-makers and empowered employees.  This primer addresses the lack of awareness of what ABC is and is not.  It is not written as a "how to implement" cookbook, but does give a head start for action.


Activity-Based Cost Management Design Framework
Authors: ABCM Design Framework Development Team
Editors: Ron Bleeker, CAM-I
Ken Euske, Naval Postgraduate School

In order to thrive in an environment where change is the only constant, best practice organizations have turned to progressive – yet proven – management tools, techniques and methods to effectively enhance performance.

Process Based Management A Foundation for Business Excellence

Process Based Management is an evolving management approach that recognizes that organizations provide products and services to their customers through cross-functional business processes.  Not only do these cross-functional processes need to be managed, but the portfolio of the organizations processes should be managed in a holistic manner to optimize the performance of the organization and provide the value to customers that they expect, and demand. 
 
This book provides organizations with insights and key learnings to successfully move along the road to becoming a process-based organization.  The Process Based Management Loop is presented as a foundation for assessing organizations Process Based Management efforts:

• The Discipline Model is used to develop a profile of the initiatives, methods and tools in place in the organization, and how they support the business model and philosophy of the organization
• The Process Based Management Assessment Model provides an approach to determine the progress an organization is making as it becomes process-based.
• The Process Continuum Model shows an organization what attributes it can expect to see as it becomes more mature in Process Based Management.

The Road to Excellence: Becoming A Process-Based Company
Authors: The CAM-I Process Management Interest Group
Revised and Edited by Dennis Daly and Tom Freeman 

The goal of this book is to understand the importance of process management in planning and achieving the objectives of the corporation.  The authors are process strategists, implementers and practitioners from various manufacturing and service companies, consulting firms, and universities who wish to share their experiences and insights on the advantages of becoming a process-centered company and on the considerations that should be made in migrating from a functional to a process-focused organization.  The book is organized into four sections:

Section 1 - Creates the strategic vision for process management; clarifies the hierarchy and the concept of core process development; provides suggestions for introducing process management within the organization and addresses organizational and behavioral issues; and defines the roles and responsibilities of process owners, controllers and performers.

Section 2 - Provides guidance on migrating from a functionally-focused to a process-focused organization using a 4-step program to assess, develop, implement and embed process management within an organization.

Section 3 - Introduces the concepts of sustaining process management through analyzing current and future-state processes in relationship to customers and markets; develops activity and process metrics relating value, time, quality, flexibility and functionality to maintain customer focus; and provides guidance for using continuous process improvement in strategic, tactical and operational planning and performance.

Section 4 - Conclusions and summary. The book is intended for business publication readers with emphasis on companies of all sizes that are exploring, planning and implementing process management in their organizations.  The Road To Excellence applies both to service and manufacturing firms and target readers should be CEOs, COOs, CFOs, Support Function Leaders, General Managers and Managers throughout a firm.


The Closed Loop
Implementing Activity-Based Planning and Budgeting

Although current budgeting practices and processes have many problems, the budget is here to stay. The Closed-Loop Model reflects a powerful new budgeting approach that speaks to many of the problems associated with traditional budgets and budgeting processes while relating and enhancing the benefits obtained from the process.

This book contains many examples of applications of the Closed-Loop Model in a variety of industries.  For competitive and confidentially reasons, none of the organizations have been named, although the concepts and lessons learned are incorporated throughout.

While this book is intended for manager and executives with responsibilities for organizational budgets, we firmly expect that managers in operating functions will find the Closed-Loop Model as useful as those in financial functions.

But why read this book?  After all, in today’s literature, one finds strong advocates of simply eliminating the periodic budgeting process and the detailed budget which results.  We do not believe that such a solution is either viable or practical for the overwhelming majority of organizations, and therefore the budget is likely here to stay.

The Closed-Loop Model reflects a powerful new budgeting approach that speaks to many of the problems associated with traditional budgets and budget processes while retaining and enhancing the benefits obtained from the process.  At a minimum, the Closed-Loop Model can supply an improved calculation engine for, and extend the operational relevance of, a traditional budget process.  However, an organization will only obtain the full benefit of using the Closed-Loop Model by restructuring the performance evaluation system so that the operating and financial metrics are in harmony with those used for performance measurement.  Following that path will also support an organization as it strives to improve the integrity and accuracy of its financial planning and budgeting processes, and integral component in performance measurement and reporting.

This book provides guidance for achieving the maximum benefit from the budget process.

Data…The DNA of Business Intelligence by Ashok Vadgama and Wayne McCleve

Information is a key enabler for organizations. Good information is fueled by trustworthy, timely and seamless data and becomes the most important ingredient within the value chain.

The interdependency of good data is a critical factor in successful information quality efforts and the implementation of systems. This book addresses key success criteria with numerous “how to” examples. It also looks into the human factors like culture, change management and the use of tools, processes and configuration management.

Implementing Activity Based Management in Daily Operations by John Miller

A practical, applications-rich guide to this new cost management methodology
Implementing Activity-Based MANAGEMENT In Daily Operations.

John Miller's lucid presentation of the principles and practice of activity-based management and activity-based costing makes this book required reading for all managers, accountants, and financial officers. Now generally recognized as a more accurate method of determining the relative profitability of various business activities, ABM has become a valuable new tool for management decision making. Miller, whose experience includes the implementation of ABM at Fortune 500 companies, provides step-by-step guidance to its use and benefits:

• Overview of ABM, including basic principles, benefits, uses, various approaches, and implementation models
• Basic techniques of activity/product costing, with comparisons between traditional methods and ABM
• Activity analysis—how to define processes, activities, cost-drivers, and goals
• Data gathering for ABM—collection techniques and interviews
• Examples of real-life implementation plans and situations, drawn from a variety of organizations
• Ongoing system requirements, planning, and performance measurement