Cost management is about removing waste, reducing risk and actually 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 deep expertise in leading cost accounting practices such as Activity Based Costing (ABC).
EXPERTISE
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Cost Management Many cost reduction initiatives actually have a negative effect and tend to erode top-line performance, or 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 important capabilities, both technical and operational.
Another important aspect of cost management is an agency's ability to negotiate effectively, especially with its vendors. To that end, 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 costing management in a federal setting and will leverage our collective experience to ensure sustainable impact. Our expertise includes in teardown practices, rigorous implementations of lean manufacturing concepts and activity based costing.
Activity Based Costing An effective implementation of managerial cost accounting practices such as Activity Based Costing (ABC) provides reliable and timely information on the full cost of federal programs or particular investments and their related activities and outputs. Founded by an ex-CFO of a federal agency, Cambio has extensive experience in implementing ABC systems and ensuring the full potential of an implementation is realized.
While agencies have made progress in trying to understand the complexities and true cost of major investments, implementations of managerial cost accounting practices tend to be used for single programs or projects rather than for providing day-to-day information for managerial decision-making across an agency.
Our Activity Based Costing practice is closely supported by Cambio’s performance management, governance, business transformation practice and a team of advanced analytics experts and data scientists equipped with state-of-the-art techniques and tools such as CostPerform. Depending on the engagement, Cambio ABC experts can act as advisors, executors of key tasks, or full team members.
benefits
• Identification of unnecessary costs • Faster adoption of the latest innovative solutions and technologies • Leading practices to help quickly enhance business process and meet industry standards • Analytical data that helps guide strategic decisions • Predictable cost and outcomes • Lower risk
