Inactivity Based Cost Management

An Activity has a cost incidence whereas Inactivity a cost consequence. Measure Cost Consequence, Now, Now, Now.

Jayaraman Rajah Iyer*

Inactivity Based Cost Management1 (IBCM) functions on the following five principles:

  1. Principle #1: What gets measured, gets managed
  2. Principle #2: Measure Qualitative Elements of Management
  3. Principle #3: Corporate Atomic Structure
  4. Principle #4: Return on Intangible
  5. Principle #5: Emergent Property Phenomenon

Principle #1: What Gets Measured, Gets Managed

Some of the notable events in corporate history provide evidence of this. Lockheed, an American aerospace company, was the first major financial scandal that rocked the corporate world, in 1976. Then secretary of state ...

Get Corporate Citizenship and Sustainability now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.