In good times or bad, the market will always judge a mining company by both its sales revenues and its cost of production. Targeting continuous cost improvement often doesn’t find its way to the top of every company’s agenda, but with profitability a clear driver of share value, this should be high on the agenda.
Brian Stewart - The Keystone Group
As management guru Peter Drucker said, “What gets measured, gets managed.”
ABSTRACT
Cost management, although often neglected is a critical element in every company's long-term success and sustainability.
In this article, Brian Stewart of The Keystone Group, outlines 4 key common attributes they have found that most successful company's share when it comes to Cost Management.
1. Building a cost-conscious culture across the entire organisation.
2. Developing an effective budgeting process to track spending.
3. Monitoring processes and costs through the use of KPI's.
4. And spending the time to ensure budget variance analysis is done and actionable initiatives are put in place.
Once cost management is supported by a foundational budget, KPIs, and analytics, it can become a part of a company’s culture - beginning with leadership and moving throughout the organization.
The results can be significant and will form the foundation of creative cost savings ideas that lead to significant return on investment.
Read the full article here: https://www.cfo.com/accounting-2/2016/06/cost-management-least-glamorous-important-task/
Ramesys Global
Ramesys is an all-in-one budgeting, forecasting and reporting platform, purpose-built for the mining industry, that offers complete cost visibility across the entire organisation.
Our goal is to make it easier for mining companies to achieve a transparent understanding of their cost performance, develop a cost-conscious culture and create a single source of truth that helps key stakeholders make better decisions, faster.
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