Chapter 5

Constructing Interactive, Learning Oriented Processes

Differentiating Leadership and Rule Driven Control Processes

Cost informed decision making is an act. Cost management is a process. The reason for the distinction is that cost management occurs through people, a natural venue for leadership. The process provides leaders the forum to drive management. It gives them the opportunity to signal, direct, influence, and teach.

Leadership driven control processes differ significantly from the rule driven control processes typical of government oversight functions. Rules provide boundaries and restraints to behavior. They preserve the status quo by telling people what they are not allowed to do. They also tell people exactly what they are ...

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