Costing is undertaken using the Activity Based Costing (ABC) method. ABC provides a unique management tool for enhancing the quality of decision-making. Activities are linked to the resources consumed, which ultimately incur costs; enabling management to more effectively manage and control costs.
With ABC, we follow a structured approach with the implementation strategy incorporating the following process:
- Education and Training
- Selecting the ABC team
- Defining the Capabilities
- Defining the Customers
- Agreement on the Cost Base
- Linking Cost Base to Activities/Cost Pools to Capabilities to Customers
- Defining the Drivers
- Collecting data
- Building the model
- Verifying the model and scenario testing
The consulting assignments that have been undertaken have been successful due to the unique methodologies that have been employed. The success achieved is due to an appreciation of the assignment in terms of:
- Keeping it simple
- Making it meaningful and practical
- Developing a structured approach
- Keeping it cost effective
We have developed a leading edge in the delivery of many high profile assignments. The process of transferring ownership to the client through “facilitation consultancy” has proved to be both cost effective and efficient.
The costing work undertaken provides the basis for the pricing of Services and Products that the organisation provides.
Charterpoint has developed and has access to a number of tools to support these processes including ABC Focus Gold, TDS Driver Plan, TDS Pricing Tools and BizSurvey.
Charterpoint provide business diagnostic, review and transition services to a range of clients. These reviews represent a comprehensive snapshot of the state of the organisation including budget inputs, output costs and of products and services. Structure, people management strategies and actions, business rules and procedures, information management and technology systems and infrastructure are also taken into account and measured where this is necessary.
The identification of all activities, cost centres and organisational capability assist in improving future performance.
Central to our approach is the importance of overall governance and accountability mechanisms at all levels of the organisation. The principal products and associated services we offer are focused, therefore on developing performance frameworks that ensure clarity of role and purpose at individual, team and whole of organisation level.
Sign-on to agreed values and behaviours is critical and sets the scene for crafting the overall performance framework consistent with the balanced Scorecard approach developed by Robert Kaplan and David Norton.