A new framework for strategic cost management

Abstract

The successful implementation of a strategic cost and quality management program is a priority in today's rapidly changing, market-oriented business environment. This report identifies the fundamental elements for successfully implementing strategic cost management programs and provides a useful framework for integrating these elements into ongoing utility operations. Working with the utility managers, the project team defined a clear, workable approach to the implementation of cost and quality management programs. Utility managers identified five activities as key to cost management implementation success. Working with the utility case experience, the project team turned these activities into a five-step implementation program. They also identified a system for assessment and monitoring of implementation progress. The report clearly defines each of these activities and the five-step program and provides a systematic process for implementing the program throughout a utility organization. 10 figs.