Our Implementation of Activity Based Management starts with the reality of what your employees actually do, including specific work activities, tools and processes and levels of responsibility to measure the cost of the value they add to customers.

Activity Based Management ("ABM") is unique among process improvement solutions to improve profitability as it determines what activities really add value to customers and measures the cost of the value added.  ABM does this by classifying work activities as either primary (those that contribute directly to meeting customer needs) or secondary (those that support primary activities).  Additionally, activities can be classified as value-adding and non-value adding.  The goal is to maximize primary and value adding activities and reduce secondary and non-value adding activities to as close to zero as possible.  This goal is pursued though defining customer needs, setting objectives to meet these needs, developing and implementing a plan to meet these needs, identifying the costs associated with the activities necessary to implement the plan and evaluating them against the value added, measuring the effectiveness of the plan and engaging in a process of continuous improvement.

It is an economic reality check that identifies and measures the financial impact of the proposed process improvement and weighs it against the value added to the customer, whether internal or external. It avoids evaluating proposed process improvements and change without measuring the cost and the corresponding value added to either internal or external customers. Facilitation and implementation of Activity Based Management can be efficiently accomplished and is very useful in determining the optimum levels of customer service and value. 

To see how our technologies and systems manage all your needs, see our  Performance, Profitability, Quality and Risk Management Applications Chart.  Activity Based Management is very similar in many respects Lean Enterprise Techniques.

The Roster Network Process for
Activity Based Management Facilitation and Implementation

The Roster Network's process for Activity Based Management starts by using the Position Matrix Communication System to efficiently identify the reality of what your employees do and how they do it: specific individual and group activities, tools and processes, responsibilities and impacts on others. This allows the creation of specific baseline or starting for your Activity Based Management evaluations. Our system of facilitation allows you to identify and measure the costs of very specific work activities. 

Click to see a Position Matrix Form or a Completed Position Matrix and Performance Appraisal

A Document Team is then created for each major activity or process. This team is charged with reviewing existing activities and processes and determining the activities and processes necessary to meet the goals of the business and the needs of the customers. 

This team then evaluates the optimum value levels of performance or service with the assistance of the financial officers of the company as respects the costs generated by the levels of performance under consideration. Once these levels of performance or service are determined, the team then documents the activities and processes with our unique Performance Management Documentation Facilitation that we use for ISO 9000 and Knowledge Management facilitation and to meet other business needs such as regulatory compliance. When facilitated with our systems, ABM and ISO 9000:2000 activities and processes are essentially the same, allowing you to optimize your company's performance, balancing cost reduction and quality improvement to meet the customer's needs.  If you later desire to pursue ISO 9000 Registration, you will already have the documentation in place!  

Further reviewing and updating is done by the team in on-going reviews conducted at least quarterly to assure that the optimum level of performance, quality and service continue to drive the operations of the company.