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From Cost to Performance Management: A Blueprint for Organizational Development


Techniques for Integrating Cost and Performance Work–to Create Increased Value at Each Level of an Organization

Measurable, sustainable improvements in cost and performance management require more than just isolated methodologies or slogans of the week. They require committed, involved leadership, adaptable systems, and an understanding that cost reduction and performance improvement work best when they work together.

From Cost to Performance Management provides application-based guidance for melding the best of today's cost and performance management methods into a unified cost/performance approach that fits your organization's needs, readiness, and identity. This well-rounded resource explores:

  • Shortcomings of existing change and growth management perspectives
  • New methodologies and mindsets for tracking valuable resources that create long-term wealth
  • Organizational development examples from today's most progressive companies

Cost continues to be the prime strategic mover in most organizations; unfortunately, it can lead to unclear, unsatisfying performance initiatives and decisions. From Cost to Performance Management reveals how cost and performance can instead be aligned to create one overriding imperative–a cost/performance approach designed to maximize long-term potential as it minimizes friction and confusion within each layer of an organization.

"Gaining and sustaining competitive advantage begins with the knowledge of how a firm's resources can be leveraged to create outstanding value for its stakeholders. The Stenzels insightfully analyze and integrate the vast literature in cost management, detailing how a company can turn mundane costing data into the knowledge required to achieve this superior level of performance. It belongs on every manager's ‘must read' list."
–Dr. C. J. McNair, Professor of Management Accounting, Babson College

CATHERINE STENZEL, MST, MBA, and JOE STENZEL, MD, are full-time ontologists and editors in chief of the Journal of Cost Management, a bimonthly RIA Group periodical. They are also co-directors of Genesis Organizational Diagnostics, which provides cost and performance consulting services focused on government, healthcare, and higher education. Joe, a board-certified pediatrician, has worked with the Juran Institute to develop a quality measurement and management model for large urban medical centers.

1. Developmental Discipline In Cost and Performance Management.

2. Cost Management: Control and Profitability.

3. Cost Types: Early Communication Attempts.

4. Standards, Budgets, and Forecasts: Learning to Compare and Coordinate.

5. Operational Resource Accounting: Learning New Rules and Roles.

6. Processes, Activities, and Resources: Shaping Organizational Identity.

7. Intentional Tactics: Patterns, Participation, and Performance.

8. Quantum Strategy: Release, Reliance, and Reversal.

9. Accounting for the Common Wealth.

Appendix A: The Basic Components and Terminology of a Traditional Income Statement.

Appendix B: A Simplified Traditional Balance Sheet Format.

Appendix C: Analysis with a Purpose.

Appendix D: ABM Concepts and Terms.

Appendix E: Recommended Reading.