CHAPTER FOURTEENImplementing ABC/M with Rapid Prototyping

ABC/M RAPID PROTOTYPING FOLLOWED by iterative remodeling of each of ABC/M's prior model's results has been proven as a superior approach to successfully implementing and sustaining ABC/M systems. It is a way to overcome the temptation (and habit by accountants or consultants) to construct an ABC/M system that is too large, too complex, and too detailed prior to the organization's ability to absorb what ABC/M is all about and how it can work for the organization. ABC/M rapid prototyping is accomplished in just a few days as a workshop facilitated by a skilled ABC/M practitioner. It is also an effective way to drive out the natural fear and resistance to ABC/M through training and participation.

ABC/M rapid prototyping is effective because the organization is modeling their own organization's expenses and calculated costs, and not a fictitious one. Employees, managers, and executives relate to it because they recognize the people, processes, work, and outputs (e.g., services). People learn better through doing.

ABC/M rapid prototyping accelerates the organization's use of ABC/M information by relying on only a few key employees first to rapidly construct a high-level ABC/M model. The initial model is deliberately called Model 0 so as not to give the impression that its information is to be used for decisions. The purpose of Model 0 is to accelerate learning by the organization, gain buy-in, and begin considering what types ...

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