| Excerpt from www.NDMA.COM, © 2024 N. Dean Meyer and Associates Inc.
Speech Abstract: Top 10 Reasons Why You Should Know the Full Cost of Your Products and Services
how to convince your leadership team that you need to revamp your budgeting and costing processes
Speech AbstractKnowing the true full cost of your products and services is a big win. It manages clients' expectations, builds trust through cost transparency and fair allocations, makes your budget defensible, ensures fair benchmarking, produces accurate chargeback rates, improves teamwork, and more. But an effective business and cost planning process requires leadership team involvement, and it can be a lot of work. To motivate the investment, you may need to convince your peers of the value of the project. This session first defines what "accurate" means by explaining exactly what goes into the costs of products/services (and what doesn't), based on the Full-cost Maturity Model. The challenge is amortizing indirect costs to just the right products/services using a defensible model that's comparable to external benchmarks. Then, it lists the top ten benefits — real-life problems that are solved by knowing the full cost of all your organization's products and services. With each, it explains how to utilize cost data to achieve those results. In some cases, the benefits are an immediate relief from pain. For example, clients' expectations are quickly brought into line with available resources. Other benefits are fundamental to long-term sustainability, like have the appropriate resources for training, innovation, process improvements, and client relationship building. Finally, this session explains the steps in an integrated planning process that produces a meaningful service portfolio, a business plan, a budget for your products and services (not just your expense codes), and accurate rates.
Outline
|
