The following describes a new category of managerial cost accounting and performance management – Activity Value Management (AVM). AVM is a new way of thinking about cost and the ultimate use of financial and non-financial information to identify opportunities for both performance improvement as well as targeting areas for expansion and divestiture.
Whenever I talk to Finance leaders about “Finance Observability” they get excited. The questions range from – How Observability is different from the KPI reporting to how Finance teams can benefit from it.
Someone asked the other day, Why does CFO.University make so much valuable content available for free?
There are a few reasons why we do this.
Well, inflation started out as “temporary” transitioned to “transitory” and now has become “sticky”. Even with the recent declines, relatively high inflation is expected to be around for some time . That said, action must be taken to address the negative effects of inflation and, what some predict will be stress on many businesses. Today, executives must balance the needs of the business against the needs of employees who are being impacted by inflation as well.
It is my hope that Santa’s elves read this article, take note, and work to achieve their KPIs! It is also my hope that Santa (and also anyone) can learn about how enterprise and corporate performance management (EPM/CPM) methods can substantially improve an organization’s performance.
