Module 6 – Inactivity Based Cost Management
“Measure what is measurable, and make measurable what is not so.”
Galileo Galilei
Business enterprise is a profound thought of good intentions toward the society, which sets apart corporate culture over individual choice. A culture is a function of true knowledge of awareness, an identity with the ethical responsibility, that by which corporate infers and society teaches.
Book extract
This Module 6 IBCM establishes the culture of an organization for centuries to come.
Principle #1: What gets Measured, gets Managed.
Consider in your company the number of times in a week the top echelons huddle together to resolve the issues. The issues are connected with individuals who have caused them not so much to the objects. We have already created several solutions for them, such as reengineering, Manufacturing Efficiency Systems, TQM, 6-sigma, Deming award criteria, HACCP, and so on. But the huddling together within an organization continues because of issues related to individuals. Variance analysis meetings invariably end up with one accusing the other. That’s the point.
Principle #1 brings goal congruence where everyone in an organization focuses on the same goal. Principle #1 deals with it.
Principle #2: How to measure qualitative elements of management?
Ethics is subtler than the subtle, and ethical motive is subtler than the subtlest. In Module 5 Deriving metrics we have discussed on the Corporate Transformation Cause – The six stages of transformation to substance.
“Measure what is measurable, make measurable what is not so”
Galileo Galili
Principle #3: Corporate Atomic Structure
Benchmarking corporate atomic structure aligning with atomic structure.
Book extract
For corporate to exist as they should requires Corporate Hydrogen, made up of fiscal and ethical assets, be governed in a way that converts mass into energy at the optimized level of performance. Corporate does not do anything more than the universe does: Creative Process and Action Process, creation and destruction.
Book extract
Principle #4: Return on Intangible
Individual unleashing of energy and getting credit for it is the new form of capitalism. In art, in literature, in music, in sports, individuals gain renown, not the corporate entity that promotes them, be it a sports club or an opera house.
Book extract
(e = mc^2): e in the equation stands for energy, m for mass, and c square for the speed of light squared.
In the simplest term, what the equation says is that mass and energy have an equivalence. They are two forms of the same thing: Energy is liberated matter; matter is energy, waiting to happen.Book extract
Since c^2 (speed of light by itself) is a truly enormous number, what the equation is saying is that there is a huge amount, a REALLY huge amount, of energy bound up in every material thing.
Principle #5: Emergent Property phenomenon
The three principles of emergent property according to Nobel laureate Murray Gellmann are as follows: (1) conformability of nature to herself, (2) applicability of simplicity, and (3) unreasonable effectiveness.
Book extract
By “Emergent Property” Murray Gellmann means you don’t add something more to get something more. Rather, shed your inhibitions and focus on using your ethical assets. Emergent Property means it’s Corporate Yoga.
Book extract
Module 6: The Takeaways
1. What You Will Learn, 2. Skills You Will Gain, 3. About This Specialization, 4. Course Assessment, 5. After Completion Of This Module You Will Be Able To:,6. The time Required For This Module 6 Is:
Module 6 – Inactivity Based Cost Management
The main lecture includes details of the Five Principles of Inactivity-Based Cost Management.
I IBCM—The Five Principles
1. Principle #1: What gets measured, gets managed
2. Principle #2: Measure qualitative elements of management
3. Principle #3: Corporate atomic structure
4. Principle #4: Return on intangible
5. Principle #5: Emergent property phenomenon
Further reading materials, in addition to the lecture above on CREAM Ratings Module 6 – Inactivity Based Cost Management, would assist individuals to 1. What you will learn, 2. Skills you will gain, 3. About this specialization -Measure Cost Consequence Now, Now, Now is to eliminate the cost of inaction altogether, 4. Course Assessment – Write a report and submit it for evaluation, 5. After completion of the Module confirmation of what you would be able to accomplish and 6. Time suggested for this Module 6 – Inactivity Based Cost Management, as part of Project ELITE – Education, Learning, Implementation, Training, Execution.
Further reading materials include 1. Chapter 6 – Inactivity Based Cost Management: from the Book and 2. 170 open-ended Process Blocks.
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