One form of learning is continuous improvement. Managers can use variance analysis for continuous improvement. How? By repeatedly identifying causes of variances, taking corrective actions, and evaluating results. Some companies use Kaizen budgeting (Chapter 6) to specifically target reductions in budgeted costs over successive periods. The advantage of Kaizen budgeting is that it makes continuous improvement goals explicit.
Continuous improvement goals need to be implemented thoughtfully. In a research or design setting, injecting too much discipline and focusing on incremental improvement may dissuade creativity and truly innovative approaches. Overly relying on gaining efficiencies should not deter employees from taking risky approaches or from challenging basic assumptions about products and processes.