Lists for Leaders: List 11 - Keys to Equitable Cost Allocation
-
Upload
one-stop-leadershop -
Category
Business
-
view
68 -
download
1
Transcript of Lists for Leaders: List 11 - Keys to Equitable Cost Allocation
Six Keys to Equitable Cost Allocation
… for Business Operations
One Stop LeaderShop®
The Complete Manager Training Program
Lists for Leaders: List 11
Presented by
Lists for Leaders Series on SlideShare
Intro i Leadership Principles Intro ii Pillars of Business Operations List 1: Strategic Planning in Five Steps List 2: Service Quality Promises List 3: Secrets to Successful Hiring List 4: Cheap Training Ideas List 5: Performance Management Style Points List 6: Tips for a Successful Employee Survey List 7: Motivations for Managing Metrics List 8: Signs of Continuous Improvement List 9: Project Delivery Scorecard List 10: Rules for a Winning Budget Season List 11: Keys to Equitable Cost Allocation List 12: Vendor Selection Checklist List 13: Internal Control Wellness List 14: ABCs of Business Continuity Bonus! Little Lessons in Leadership
One Stop LeaderShop® - The Complete Manager Training Program
You are here ※
Statement of Purpose
Equitable Cost Allocation Ensure that your operating costs are competitive when
compared to other best providers.
One Stop LeaderShop® - The Complete Manager Training Program
Contents
The 6 Keys to Equitable Cost Allocation
… in Business Operations
One Stop LeaderShop® - The Complete Manager Training Program
1. Logical 2. Reasonable 3. Explainable 4. Consistently applied 5. Updated periodically 6. Minimally flexible
But first … Cost Allocation 101
Every dime spent by your company represents a cost of doing business. The net profitability calculation for each business unit takes the cost of doing business into account.
Some cost can be attributed directly to the business unit. Easy.
Other cost – including the cost of business operations – is
support-related or administrative. These costs are shared by many business units.
One Stop LeaderShop® - The Complete Manager Training Program
More … Cost Allocation 101
Cost Allocation is the equitable distribution of shared cost across your company’s business units. Each business unit pays its fair share, based on usage.
Sample usage metrics: transaction volume, number of customers, numbers of assets serviced, volume of inventory, etc.
One Stop LeaderShop® - The Complete Manager Training Program
Finally … Cost Allocation 101
There are several methods for allocating the cost of business operations, ranging from simple to complex.
All methods have – or should have – the following key characteristics in common.
One Stop LeaderShop® - The Complete Manager Training Program
Key #1: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Logical
Make sure your method is well-structured and predictable.
Key #2: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Reasonable
Show an understanding of the business you support. Think about cost the way your business partners do.
Key #3: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Explainable
Provide your business partners with a clear and compelling justification for your cost allocation process. Stay out of the
weeds, though.
Key #4: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Consistently Applied
Your allocation must be perceived as fair. Make it formula-driven where possible.
Key #5: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Updated Periodically
At budget time, you will need the ability to encode new usage estimates for the coming year.
Key #6: Your cost allocation method must be ….
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Minimally Flexible
Ideally, your cost allocation model can be easily adapted to changing business conditions (e.g. expansion, new
products, new technology, new vendor contracts, etc.).
Never underestimate … … the importance of cost management and equitable
cost allocation to the strategic mission of your company.
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Key decisions depend on it … … like entering new businesses, expanding existing business and/or exiting other businesses altogether.
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
This is your opportunity … … to have a positive impact on your company’s
bottom line.
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Seize the day.
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Intro i Leadership Principles Intro ii Pillars of Business Operations List 1: Strategic Planning in Five Steps List 2: Service Quality Promises List 3: Secrets to Successful Hiring List 4: Cheap Training Ideas List 5: Performance Management Style Points List 6: Tips for a Successful Employee Survey List 7: Motivations for Managing Metrics List 8: Signs of Continuous Improvement List 9: Project Delivery Scorecard List 10: Rules for a Winning Budget Season List 11: Keys to Equitable Cost Allocation List 12: Vendor Selection Checklist List 13: Internal Control Wellness List 14: ABCs of Business Continuity Bonus! Little Lessons in Leadership
More Lists for Leaders on SlideShare
You are here ※
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Workbook CD ROM
One Stop LeaderShop® is a comprehensive, convenient and affordable manager training course. We teach managers the 5 leadership principles and 14 business practices they need to drive performance, including Practice 11: Equitable Cost Allocation.
Our course is purposely written as an independent study program (classroom optional). For more information about Equitable Cost Allocation please follow these links:
Paperback Book E-Book
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Workbook CD ROM
One Stop LeaderShop® The Complete Manager Training Program
Complete 14-Volume E-Book links:
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
One Stop LeaderShop® The Complete Manager Training Program
Complete 6-Volume Paperback Book links:
Workbook CD ROM
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Also available on SlideShare How to Be a Great Employee
Lesson 1: Think Strategically Lesson 2: Follow a Set of Guiding Principles Lesson 3: Be a Responsible Corporate Steward Lesson 4: Care About Customers Lesson 5: Say It With Numbers Lesson 6: Manage Yourself Lesson 7: Redefine Professional Growth
Advice for career-minded beginners!
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Also available on SlideShare Leadership for the Time of Your Life
Recent Graduate Young Professional Manager of Managers C-Suite Executive
Need solutions? … help has arrived!
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
Also available on SlideShare Perfect Pairings
Some business practices are simply meant to be together!
Strategic Planning & Equitable Cost
Allocation
Performance Management & Employee Satisfaction
Service Quality & Vendor Management
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com
CEO’s, Managers, Job Seekers and Recent Graduates! Click to learn more about our affordable manager training program.
Author, Trainer, Operations Professional CEO, One Stop LeaderShop®
Thank you for visiting One Stop LeaderShop®
The Complete Manager Training Program
Mary E. Vogan
One Stop LeaderShop® - The Complete Manager Training Program Visit us at www.onestopleadershop.com