Sri Lankan Businesses Waste 4 Per Cent Yearly

Sri Lanka wasted organizations an average amount of 4% of turnover each year, according to a new study by the Institute of Management Accountants (CIMA). Among the most common causes of losses were projects that were canceled after its creation - with 38% wasted costs in this area to admit - followed by delayed (66%) projects and excess goods and services (26 %).

CIMA interviewed more than 2,000 financial professionals, 59% admitted that their organizations lack any strategy to boost cost competitiveness. Another 48% 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 27% of a member of the board responsible for maintaining cost competitiveness.

As for breathlessness in Sri Lanka organizations to change bad habits, 21% of respondents said employee incentives are poorly designed to promote cost control; 12% believe that cost control strategies are ineffective. In addition, 21% believe that technology and analytical data are misused within their organizations.

Peter Spence, director of Performance Management Research CIMA 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 through the organization of the value chain CIMA. members have never been more relevant for sustainable success in the volatile world of business today, where there is uncertainty in every corner. "