Part II

Stage II Cost Use

Creating Cost Managed Organizations

Making cost informed decisions is a good thing: But it is just scratching the surface in unlocking the value of cost use in leadership driven management. (See Figure 5.1.) Cost Managed Organizations (CMOs) make hundreds of cost informed decisions. Furthermore, they expand the venue from ad hoc use to an institutionalized process of systematically looking at costs and cost stimulated innovation.

Figure 5.1. While cost informed decision making uses cost benefit analysis to make superior decisions, it takes a cost managed organization to ensure performance. Cost managed organizations ...

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