What is it?
Operational visibility is the ability to objectively track and monitor activities within an organization.
What is the connection between operational visibility and costs?
Operational activities make up a significant portion of business expenses. How operational activities are carried out ultimately affect costs incurred by a business. High efficiency operational activities correspond to low expenses. While low efficiency operations are expensive to run.
How to achieve cost control using operational visibility?
• Step 1: Attain objective visibility of operational activities.
• Step 2: Use visibility to develop a thorough understanding of operational activities.
• Step 3: Establish the connection between costs and operational activities.
• Step 4: Use the connection between costs and operations to control costs.
What happens if you don't establish a connection between costs and operational activities?
Overtime, it becomes harder to objectively explain and control business expenses.