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Activity Level Improvements
Strategy Mapping is the process of diagramming how an organization
creates value by connecting strategic objectives in explicit cause-and-effect
relationship with each other in the four BSC objectives (financial, customer,
processes, learning and growth). Strategy Maps are a strategic part of the
Balanced Scorecard framework to describe strategies for value creation.
Budget Crosswalks, commonly used in finance and budgeting, convert one
set of values to another by applying a specific set of business rules and can
describe the relationship between the budget’s allocated funds and the
programs those funds are expected to impact. Used in the Federal Budget
Process, Budget Crosswalks are defined as a, “term for the allocation of
budget authority and outlay amounts in a budget resolution to congressional
committees according to their jurisdictions and the committees' subdivision of
those amounts among their programs or subcommittees.”
Activity Based Costing (ABC) is an alternative to the traditional way of
accounting. Traditionally it is believed that high volume customers are
profitable customers, a loyal customer is also a profitable one, and profits will
follow a happy customer. Studies on customer profitability have unveiled that
the above is not necessarily true. ABC is a costing model that identifies the
cost pools, or activity centers, in an organization and assigns costs to
products and services (cost drivers) based on the number of events or
transactions involved in the process of providing a product or service. As a
result, Activity Based Costing can support managers to see how to maximize
shareholder value and improve corporate performance.
Activity Based Management (ABM) is a discipline that focuses on the
management of activities as a way to improve customer value and profit. ABM
includes cost driver analysis, activity analysis, and performance
measurement. This technique uses activity based costing information to
identify strategies for removing resource waste from operating activities. Main
tools employed include: strategic analysis, value analysis, cost analysis, lifecycle
costing, and activity based budgeting.
The Most Efficient Organization (MEO) is management’s “bid” to perform a
certain function. If the MEO wins an A-76 competition, it succeeds or takes
over the work of the existing government function.
The President’s Management Agenda urges federal leadership to “compete”
functions that are commercial in nature. To be competitive with private
industry, the team responsible for developing the MEO must design a
streamlined, more efficient work organization than is in place today. The MEO
generally performs the same work as the government function it is meant to
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