Health and Human Services 5 Trends Driving the Future of Human Services Whatever the future of human services innovation looks like, the key for organizations is in making the most of the forces of change in alignment with their unique circumstances. The political pressure to avoid displaying material reductions in service while costs increase and revenues fall is driving change in human services. Leaders know that processes, technologies and cultures must all be part of the change equation to deliver high-quality, cost-effective services. A recent survey of Human Services Summit attendees revealed a consensus around the value of progressing along the Human Services Value Curve a framework developed by Antonio Oftelie at Harvard Universityciting it as a high priority.
The reason why the father wished to close down the branch was that it appeared to be making a loss. However, it is quite the reverse; if the branch was closed then, the positive contribution from the branch would be lost and overall profits would fall.
This is because the indirect costs of production do not vary with output and, therefore, closure of a section of the firm would not lead to immediate savings.
This may mean that closing the branch would be a mistake on financial grounds. This mistake is made due to a misunderstanding of nature of cost behavior.
If the branch is closed then the only costs that would be saved are the costs directly related to the running of the branch: The costs are indirect in nature, in this example the marketing and central administration costs, would still have to be paid as they are unaffected by output.
For this decision to be made, we should use contribution as a guide for deciding whether or not to close a branch. This can also be applied to the production of certain product lines, or the cost effectiveness of departments.
On financial grounds, contribution is therefore, a better guide in making decisions.Contents Contents Preface Acronyms. Some Russian and English Geographical Names Introduction. Chapter 1.
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