Show you a change management benchmarking example?
Change management is what a principals or key management must embrace. Benchmarks are what you establish as acceptable end results and then you can hold your staff accountable to those benchmarks.
For example if Management was not allocating overhead to the job estimating and now they are going to allocate overhead. The change occurs by first documenting the change and then requiring management to change and follow the process (Change management). Below is a very high level example.
This standard procedure explains the calculation and application of overhead as applied to job estimating for SAMPLE Company. Spreadsheets and support documentation will be developed to track overhead by each job. An annual fiscal budget can also track overhead by each month, based upon seasonality.
EXPENSE CLASSIFICATION
Overhead costs include those costs that cannot be directly tracked to a particular job. From the income statement this would include all expenses in the operating cost category. Examples:
Telecommunications
Office Supplies
Rent
etc
Direct Costs include those that can be traced to a particular job of the company. Examples:
Paint / supplies
Direct Labor
Truck fuel
etc
RATE CALCULATION
The formula for overhead rate absorption is as follows: etc etc etc
This is the change that management is required to monitor and these benchmarks are accountable to other management or principals and shareholders.
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