Specialists will program the database according to the ­allocation matrix ­defined in previous steps and automate the use of the input sheets provided by the data input focal points. It is ­recommended that the database specialist incorporate an automated top management report in MS PowerPoint as well as an Excel data report for the use of Market, Pricing and Strategy analyses. 

Step 6: The allocation system will be run for at least three ­periods in scope and the calculated data will then be ­compared by ­Marketing, Pricing and Strategy analysts working ­together. To test the data and to get a feel for potential mistakes, it is recommended to identify the most sensitive cost accounts and resource drivers, in order to see what modifications within will ­change the total results. Furthermore, it is advisable to conduct a ­separate check on the validity of the most important cost ­accounts and resource drivers: What is their development like? How does it compare to other operators? Does that make ­sense? Once the numbers are finalized, the project sponsor has to ­fully ­verify and initiate the official approval of the Chief Finance ­Officer and the Chief Marketing Officer that ­these numbers will be the only ones in use by the business from then on.

Cost management does not allow time to rest

Following these steps, one might think that the job is done and it is time to rest. While that might be true for the project team, it cannot be true for the wider business. In the ­immediate ­aftermath of the successful project implementation, the cost management organization will need to fully adapt the new cost allocation system in the already existing cost management ­framework. Cost reporting analysts need to be trained to use the new allocation system and to ensure a regular high-quality reporting of results. Planning and Budgeting needs to be ­adapted to reflect the new dimensions of cost objects also in the plan. Human Resources and Internal Business Development will need to be addressed to see if there are ways in which the new Planning and Budgeting dimension can or even should be used as a better way for management and employee incentive setting. Furthermore, Marketing, Pricing and Strategy will want to use the new information for their own purposes. To this aim the data provided will need to be interpreted, simulations will need to be run, the data will need to be presented in different ways – and these are only a few examples.