Activity-Based Management for Financial Institutions: Driving Bottom-Line Results

CHAPTER 7

Avoiding the Pitfalls: Lessons Learned

There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest of them have to pee on the electric fence to see for themselves.

—Will Rogers

 

 

Over many years and through many implementations, you either learn a few lessons about implementing ABC/M or you lose your mind—there is not a lot of middle ground. Fifteen years ago, there were few documented lessons learned about ABC/M implementations. Thankfully, that has changed. If you happen to be one of the rare people who learn more from reading than from self-discovery, this chapter is for you! On the other hand, if you need to feel the power of the electric fence to understand it hurts, consider this chapter a bit of a warning before the “zapping” sensation.

ABC LESSONS LEARNED

You will encounter and make literally hundreds of design decisions during an ABC implementation; there are seven lessons learned that can guide your decision-making process. These lessons learned are shown in Figure 7.1.

FIGURE 7.1 ABC Lessons Learned

Begin with the End in Mind

In Chapter 3, several ABC implementation guiding principles were introduced. One theme underlying several of the guiding principles is “Begin with the end in mind.” Who will be accountable for changing processes, products, and customer behaviors based on the ABC information? How will they ...