Recently, I proposed some performance metrics that included cost avoidance. The idea was promptly dismissed by an VP because it was not a "value added" measurement of the performance of my team.
I am no accountant or financial genius so I must have missed something. How is cost avoidance not adding value? If that's the case, I should resign immediately because I run a service organization that's whole existence is centered around the fact that we are less expensive than outside services (we really are too). We save money through cost avoidance. Every year we get better at it too! I have tons of data to prove this but with a waive of some EVP's hand, I have nothing.
Maybe somebody who has more experience with these things can tell me what this guy was talking about and where should I go next? Was he wrong?