One of the biggest mistakes in profitability and cost management initiatives is assuming that more detail leads to better decisions.
In reality, the opposite often happens.
In a recent case documented in this whitepaper, a regional bank reduced its profitability model from 420 activities to just 52, cut processing time from 12 days to 2.5 days, and dramatically improved decision adoption by managers.
The lesson:Better design beats more data.
If you are working with ABC/M, TDABC, or multi-dimensional profitability models, this guide explains how to calibrate the right level of granularity, drivers, and cost objects.
The paper was published by the IMA Profitability & Cost Management Shared Interest Group.
If you are interested in profitability analytics, cost management, and data-driven finance, consider joining the SIG and being part of the conversation.
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