Implementing a Value-Based Cost Management System—Part I: Scoping the Project

The person who moves a mountain begins by carrying away small stones.

Chinese Proverb1

One of the most challenging parts of any project is developing enthusiasm in the organization—the willingness to embrace change. Implementing a value-based cost management system (VCMS) is no exception. A diverse group of people need to be convinced of the value the new information embedded in the VCMS can bring to the organization. Often starting as a drive to develop a common language across the firm, the VCMS provides all of the benefits of activity-based implementations plus much more. So what is the path to implementation? It is similar to that for all major change ...

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