5 Frogs on a Log

Five frogs are sitting on a log. Four decide to jump off.
Question: How many are left?
Answer: Five. (Because there is a difference between deciding and doing.)

There are a lot more people "deciding" to implement Activity Based Management (ABM) than there are people actually "doing" ABM. A January 1999 survey of people who attended 1998 American Management Association ABM workshops shows:
1. 22% are "doing" ABM. They successfully self-implemented after the workshop.
2. 74% "decided" to implement ABM but deferred it to 1999.
3. 4% could not get senior management to "decide" or "do".
A similar survey was performed of those organizations that purchased an ABM Self-Implementation Toolkit. Each ABM Toolkit contains PC-software, tutorial, an Activity Dictionary, step-by-step instructions plus an ABM & ABC case study with data disk. That survey shows:
1. 50% are "doing" ABM. They successfully self-implemented ABM & ABC in less than 120 days.
2. 50% "decided" to implement ABM but deferred it to 1999.
What can we learn from these two surveys?
1. In contrast to 5 years ago, managers no longer question the potential benefits of ABM. They have decided that they need ABM to support improved decision-making and continuous improvement.
2. Your chances of ABM success are greatly enhanced if you purchase an ABM Toolkit … 50% versus 22%.
3. One ABM Toolkit user shared the following comments regarding their implementation: "We have recognized that certain activities are costing us more than we realized. ABM has inspired a "team" approach by our management to bring about changes to non-value activities that will positively affect our bottom line. ABM has made us a "team" on a common goal."
Be an ABM doer!
Send your comments to TomPryor@ICMS.netw
If this article has inspired you and your organization to cut costs this year, call us at 817-475-2945, or e-mail your needs to tompryor@icms.net.