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Seems to make good sense, doesn't it? If we're determined to reduce our costs and make our business more efficient, we don't start out by dumping a resource such as experienced people, chopping "heads" as we say. Yet that's precisely the way many of us address cost problems.
Don't Treat the Symptom
"Treat the symptom rather than the disease" is the approach. At least it was the approach until the 1980s, when ABC began to develop. Concurrent with the growing adoption of ABC, we began "changing the business model," "reengineering," "outsourcing," etc. Which came first, the chicken or the egg? ABC or fundamental business change?
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