Cost management is about removing waste, reducing risk and spending more on the areas that matter most to an agency’s mission.
When implemented properly, cost management is a strategic exercise that allows an agency to review and improve business processes, services, and general operations. Our cost management experts understand the nuances of executing a cost management project in a federal setting and work collaboratively with executives to identify innovative ways to achieve savings, make transformational changes, and instill a cost-conscious culture and organizational structure that promotes sustainable change.
Many cost reduction initiatives actually have a negative effect and tend to erode performance, or place strategic imperatives at risk. Others are simply not sustainable. We help our clients view cost management from transactional, operational, and strategic perspectives. Cambio has extensive expertise in leading cost accounting practices such as activity-based costing (ABC).
Expertise
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Cost Management Many cost-reduction initiatives have a negative effect and erode top-line performance or put strategic imperatives at risk. Others are simply not sustainable. Executing cost-reduction plans well—and sustaining the improvement over time—will typically require an agency to strengthen both technical and operational capabilities.
Another critical aspect of cost management is an agency's ability to negotiate effectively, especially with its vendors, and investments in advanced procurement analytics—clean-sheet sourcing and total-cost-of-ownership (TCO) models—are highly promising. Cambio's strategic advisors have a holistic view of cost management in a federal setting and leverage our collective experience to ensure sustainable impact. Our expertise includes teardown practices, rigorous implementations of lean manufacturing concepts, and activity-based costing.
Activity-Based Costing Effective implementation of managerial cost accounting practices such as activity-based costing (ABC) provides reliable and timely information on the total cost of federal programs or particular investments and their related activities and outputs. Founded by the former CFO of a federal agency, Cambio has extensive experience implementing ABC systems and ensuring the full potential of an implementation.
While agencies have made progress in understanding the complexities and actual cost of significant investments, implementations of managerial cost accounting practices tend to be used for single programs or projects rather than providing day-to-day information for managerial decision-making across an agency.
Cambio’s performance management, governance, and business transformation groups—as well as a team of advanced analytics experts and data scientists equipped with state-of-the-art techniques and tools such as CostPerform—support Cambio’s activity-based costing practice. Depending on the engagement, Cambio ABC experts can act as advisors, executors of crucial tasks, or full team members.
benefits
• Identification of unnecessary costs • Faster adoption of the latest innovative solutions and technologies • Leading practices to quickly enhance business process and meet industry standards • Analytical data to guide strategic decisions • Predictable cost and outcomes • Lower risk
