What do this week’s weather forecast and organization
performance have in common?
Most of the time, reality doesn’t match expectations. Cloudy skies
that cancel a little league game may suddenly let the sun shine
through just as the vans are packed. Jubilant business owners may
change their tune when they tally their monthly bills and discover
that skyrocketing operation costs have significantly reduced their
profits. Differences, or variances, are all around us.
For organizations, variances are of great value because they
highlight the areas where performance most lags expectations. By
using this information to make corrective adjustments, companies
can achieve significant savings, as the following article shows.