Financial Activity Management (FAM)

Managing financials is more than just balance sheets and P&Ls.  To maximize profitability,  you need to be able to create a clear picture of real costs so that you can strategically determine how to price each product or service. The Financial Activity Management (FAM) Model helps you break down direct and indirect activities and then assigns them to the product or service that is directly affected by that component. Understanding these relationships allows you to create a more precise costing/pricing model and is key to ensuring a strategic path to sustainable profitability and growth.

FAM Tasks & Activities

• Identify and track progress against organizational goals

• Compare performance against both internal and external standards

• Identify opportunities for  improvement

• Review the direction of the strategic activities

Tailored Financial Solutions for Your Business

With a FAM system in place, the organization will have accurate data that allows them to make informed decisions about critical issues. It reveals profitability by customer and product, identifies opportunities for improvement and encourages actions that meet customers’ needs in a profitable way. With FAM, processes are seen as a chain of activities that, linked together, provide value to customers. FAM collects both financial and non-financial information and plays a key role in helping to drive workplace change.

In its simplest terms, FAM first identifies all activities and components and then assigns them to each specific product or service.  Therefore, perhaps for the first time, you will be able to precisely measure the cost at each stage of product development, manufacture, modification and batch size, thus allowing you to react quickly and accurately to market changes. 

FAM is a tool which:

• Identifies the activities and processes performed in producing products and services 

• Prepares for change by developing a process view of operations

• Shows how resources are used in making/providing products

• Provides information for accurate decision-making

FAM is NOT:

• A new accounting system for finance or payroll

• A new way to do time studies

• A solution to a problem

• A substitute for common sense