Phase II: Phase II is the time during which the CEO/CFOs implement the plans to replace the current budget and all its costs and widely acknowledged limitations and its workarounds developed during Phase I.

Two possibilities that may not have been included in the Phase I plane should also include:

• Incent the department managers to use their departments’  activity-based costing data to shift focus from controlling its costs to improving the departments’ efficiencies
• Use the CFOs’ CHQ OIS departments to prepare OIS material for review with Wall Street advisors covering their firms