Businesses guilty of wasting 5% of revenues a year

Global organizations unnecessarily lose an average amount of 5% of turnover each year, according to a new study by the Institute of Management Accountants (CIMA). followed by systems and inefficient processes - - among the most common causes of losses projects with 75% of support costs wasted in this area were delayed (74%) and open projects, but later canceled (55%).

 CIMA interviewed more than 2,000 financial professionals, half (50%) admitted their organizations lack any strategy to boost cost competitiveness. Another third (33%) of respondents said there is little or no mandate within their organizations to reduce costs when making decisions daily.

Demonstrate a gap between expectations and reality, 80% of respondents believe that the promotion of a culture were aware liability costs of your management team. But on the contrary, the results revealed that only 1 in 4 companies (25%) of a member of the board responsible for maintaining cost competitiveness.
Peter Spence, director of China research performance management, said:

"The lack of a cost conscious culture is a threat to the competitiveness of the UK - can be as innovative or as creative as we like but if our products and services cost too much, we are not maximizing our profits and we risk losing out to cheaper competitors.

"However, the cost is not just being cheap. It is the integration of a cost-conscious culture, so that all decisions at all levels of the company, focuses on the return on investment".

As for the lack of incentives in organizations to change bad habits, one third (32%) of respondents said that employee incentives are poorly designed to promote cost control; with a quarter (25%) believe that cost containment strategies are ineffective. Another 36% believe that technology and analytical data are misused within their organizations. Peter Spence said:

"The balance between short- and long-term requires the commitment of management accountants, who have a good understanding of the factors of cost, risk and value across the value chain members of the organization CIMA have never been more relevant. ensure sustainable success in the volatile world of business today, where there is uncertainty in every corner. "

The Chartered Institute of Management Accountants (CIMA), founded in 1919, is a leading and largest professional body of management accountants with more than 227,000 members and students operating in 179 countries, working in the heart of the business. CIMA members and students work in industry, commerce, the public sector and non-profit organizations. CIMA works closely with employers and sponsors cutting-edge research, constantly updating its qualification, professional experience requirements and continuing professional development so that it remains the choice of employers in recruiting financially trained business leaders.

Professionalism and ethics are at the core of the activities of CIMA with all members and student bound by strict rules to combine integrity, experience and vision.

CIMA has formed a joint venture with the American Institute of Certified Public Accountants (AICPA) to establish the Chartered Global Management Accountant (CGMA). CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognizes the most talented management accountants and committed to the discipline and skill to drive strong business performance.

CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of ​​Islamic finance. CIMA also offers a bachelor's Global Business Services, in collaboration with The Hackett Group, the first and only in the world of professional qualification in the shared services and outsourcing arena.

Transformation cost is a concept designed by Peter Spence on the basis of accounting principles Global Management. It is based on the idea that once a business model is established, 80% of costs are locked in life. Before companies determine a plan or a strategy, we must consider the following:

The model includes six critical success factors divided into two zones behind the wheel of a conscious cultivation costs (efficiency) and a competitive cost advantage (making sure the final product is competitive).