• When You've Got to Cut Costs--Now

    Technology & Operations Magazine Article
    You've been ordered to reduce overhead by 10%, 20%, or even (wince) 30%. How do you do it? First, don't expect to reach your target with a single big...
  • Innovating on a Shoestring

    Innovation Digital Article
    Scott Anthony, president of Innosight and author of The Silver Lining, explains how to innovate when time and money are tight.
  • New Framework for Corporate Debt Policy

    Accounting Magazine Article
    Few, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […]
  • Don’t Let Cost Cutting Run Amok

    Costing Digital Article
    Too many CEOs are penny-wise and pound-foolish.
  • Getting Transfer Prices Right: What Bellcore Did

    Accounting Magazine Article
    The subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting. We at Bellcore first got interested in transfer pricing in 1983. That’s the year before AT&T was broken up and Bellcore was being formed as the centralized organization supporting the seven regional […]
  • How Much Should a Corporation Earn?

    Financial analysis Magazine Article
    This article presents the research findings of a leading U.S. corporation, AT&T, on a series of important economic questions and issues, with an interpretation of the material by one of the company’s top executives. The subject is corporate earnings patterns in different industries, investment trends, the relation of profits and investment to GNP, and other […]
  • The Department of Mobility

    Costing Magazine Article
    Employees are constantly in motion—making sales calls or taking service trips; visiting an international office for a few days or relocating there for a few years; soaring across oceans in the corporate jet or heading across town in the company car. Typically, these activities are administered by an assortment of departments and vendors. But we […]
  • Profit Priorities from Activity-Based Costing

    Accounting Magazine Article
    In recent years, companies have reduced their dependency on traditional accounting systems by developing, activity-based cost management systems. Initially, managers viewed the ABC approach as a more accurate way of calculating product costs. But ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profits. Moreover, the ABC […]
  • One Cost System Isn’t Enough

    Accounting Magazine Article
    Many companies now recognize that their cost systems are inadequate for today’s powerful competition. Systems designed mainly to value inventory for financial and tax statements are not giving managers the accurate and timely information they need to promote operating efficiencies and measure product costs. In response, they have tried to redesign their present systems, but […]
  • Animation: Deciphering Cost Variance

    Finance & Accounting Video
    Learn the ABCs of cost variance analysis through this simple illustration.
  • You Need a New Cost System When…

    Accounting Magazine Article
    By now it’s well publicized—if not obvious—that many companies’ cost accounting systems are falling down on the job. They give managers incorrect product costing information, or they inundate managers with irrelevant cost information, or they fail to measure the things that really count. Strategies may be conceptually brilliant, but if they are based on faulty […]
  • Using APV: A Better Tool for Valuing Operations

    Finance and investing Magazine Article
    Today’s technology can put adjusted present value into the arsenal of every general manager.
  • Fix the Handful of U.S. Hospitals Responsible for Out-of-Control Costs

    Finance & Accounting Digital Article
    A small number of hospitals are responsible for nearly 80% of the excess payments for common Medicare procedures.
  • To Lead, You Must Focus

    Costing Magazine Article
    Leading a large, complex organization like the U.S. Navy, which is interdependent with similar entities, calls for a certain approach. You begin with a narrow focus on your organization’s unique strength and role. For the navy, that is presence. U.S. naval forces—sailors and Marines—are constantly mobilized, don’t need an inch of foreign soil, and can […]
  • A Case for Historical Costs

    Costing Magazine Article
    Do we really need to switch to replacement-cost accounting to understand how companies have performed?
  • To Control Health Care Costs, U.S. Employers Should Form Purchasing Alliances

    Finance & Accounting Digital Article
    A hot labor market is limiting employers' ability to shift more costs to their workers.
  • Excess Management Is Costing the U.S. $3 Trillion Per Year

    Finance & Accounting Digital Article
    Here's the math.
  • You Can Prevent Layoffs

    Costing Digital Article
    When you strip away the fancy jargon, a successful business fundamentally makes more money than it spends. While managers can pull any number of levers to accomplish this, the one they most often choose reads: “Reduce Costs!” And perhaps the most common way they cut costs is to eliminate jobs. This is why we are […]
  • Why Not Leverage Your Company to the Hilt?

    Costing Magazine Article
    Easy credit means hard choices. The old consensus between lenders and corporate borrowers about what constitutes a prudent level of financial reserves has broken down. Today’s junk-bond financiers, merchant bankers, and “credit corporations” offer far more leverage than businesses have historically been comfortable with, and these venturesome lenders pose a difficult problem for management. Managers […]
  • 4 CEOs Who Are Making Frugal Innovation Work

    Costing Digital Article
    Creating high-quality products that are affordable, simple, and sustainable.
  • Making Smart Investments: A Beginner’s Guide

    Costing Advice
    Reduce the risk factor, increase the reward factor, and generate meaningful returns.
  • When You've Got to Cut Costs--Now

    Technology & Operations Magazine Article
    You've been ordered to reduce overhead by 10%, 20%, or even (wince) 30%. How do you do it? First, don't expect to reach your target with a single big...
  • Innovating on a Shoestring

    Innovation Digital Article
    Scott Anthony, president of Innosight and author of The Silver Lining, explains how to innovate when time and money are tight.
  • New Framework for Corporate Debt Policy

    Accounting Magazine Article
    Few, if any, articles on finance that have appeared in HBR have enjoyed the influence of the 1962 article reprinted here as a “Classic.” Gordon Donaldson’s analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative […]
  • Don’t Let Cost Cutting Run Amok

    Costing Digital Article
    Too many CEOs are penny-wise and pound-foolish.
  • Getting Transfer Prices Right: What Bellcore Did

    Accounting Magazine Article
    The subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting. We at Bellcore first got interested in transfer pricing in 1983. That’s the year before AT&T was broken up and Bellcore was being formed as the centralized organization supporting the seven regional […]
  • Ball: EVA Driving the World's Leading Can Manufacturer (B)

    Management Case Study
    Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired...
  • How Much Should a Corporation Earn?

    Financial analysis Magazine Article
    This article presents the research findings of a leading U.S. corporation, AT&T, on a series of important economic questions and issues, with an interpretation of the material by one of the company’s top executives. The subject is corporate earnings patterns in different industries, investment trends, the relation of profits and investment to GNP, and other […]
  • The Department of Mobility

    Costing Magazine Article
    Employees are constantly in motion—making sales calls or taking service trips; visiting an international office for a few days or relocating there for a few years; soaring across oceans in the corporate jet or heading across town in the company car. Typically, these activities are administered by an assortment of departments and vendors. But we […]
  • Profit Priorities from Activity-Based Costing

    Accounting Magazine Article
    In recent years, companies have reduced their dependency on traditional accounting systems by developing, activity-based cost management systems. Initially, managers viewed the ABC approach as a more accurate way of calculating product costs. But ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profits. Moreover, the ABC […]