Activity Based Management: Improving Processes and Profitability - Chapter 4, Frameworks for Measurement and Improvement

Although ABM can be used as a stand-alone approach to understand processes, product and customer costs and profitability, it provides a more powerful means of decision support if it exists as part of a larger framework of measures. Over a number of years a number of frameworks have been developed, each endeavouring to bring a more rounded perspective on the business and a reduced emphasis on the previous domination of financial measures. Although traditionally profit has assumed the dominant role as a measure, the many means of its attainment are recognised as being much more varied and complex to measure and control.