Addressing unfavorable variance involves several steps:
Identify the Root Cause: Conduct a detailed analysis to understand what caused the variance. Develop an Action Plan: Create a plan to address the root causes. This may involve adjusting strategies, reallocating resources, or implementing new processes. Monitor Progress: Continuously monitor performance to ensure the action plan is effective. Make adjustments as needed. Communicate: Keep stakeholders informed about the variance, its causes, and the steps being taken to address it.