Tools for Successful ABC/M Implementation The Consortium for Advanced ManagementInternational (CAM-I) and the American Productivity and Quality Center (APQC) collaborated ina survey of 166 manufacturing and service firms to assess the implementation of ABC/M in thesefirms. Sixty-eight percent of the respondents were in manufacturing and 25% in service companies.The results showed that the majority of senior managers reported “very successful” implementationsof the ABC/M system, while department managers were somewhat evenly split between “very successful” and “moderately successful.” Line personnel tended to vote “moderately successful.” So, thehigher the level in the organization, the more perceived benefit of the ABC/M system.Interviews with selected respondents and further data analysis showed that the three mostcommon characteristics of successful systems were (1) a high level of top-management supportand commitment; (2) technical competence of the implementation team; and (3) effective changemanagement—that is, companies driven by competitive pressures to strive to better understand theirinternal capabilities and external competition. Some of the responding companies made strategicchanges, including changes in the supply chain and changes in target customers. These results aresimilar to those reported in prior studies of ABC/M implementation.Required In addition to the three characteristics of successful ABC/M implementation noted above, listsome other guidelines or tips for ABC/M implementation.
Tools for Successful ABC/M Implementation The Consortium for Advanced Management
International (CAM-I) and the American Productivity and Quality Center (APQC) collaborated in
a survey of 166 manufacturing and service firms to assess the implementation of ABC/M in these
firms. Sixty-eight percent of the respondents were in manufacturing and 25% in service companies.
The results showed that the majority of senior managers reported “very successful” implementations
of the ABC/M system, while department managers were somewhat evenly split between “very successful” and “moderately successful.” Line personnel tended to vote “moderately successful.” So, the
higher the level in the organization, the more perceived benefit of the ABC/M system.
Interviews with selected respondents and further data analysis showed that the three most
common characteristics of successful systems were (1) a high level of top-management support
and commitment; (2) technical competence of the implementation team; and (3) effective change
management—that is, companies driven by competitive pressures to strive to better understand their
internal capabilities and external competition. Some of the responding companies made strategic
changes, including changes in the supply chain and changes in target customers. These results are
similar to those reported in prior studies of ABC/M implementation.
Required In addition to the three characteristics of successful ABC/M implementation noted above, list
some other guidelines or tips for ABC/M implementation.
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