How lean accounting promotes lean in the organization
Lean finance helps make upstream problems visible and provides consultative products and services to support the organization in increasing customer value.
In his book “Getting the Right Things Done,” Pascal Dennis writes, “When implementing strategy deployment , engage the Finance team early on. Too often this group is relegated to the lowly position of ‘bean counters,’ rather than its proper role: trusted advisor and business partner.” In my years of experience as a finance leader in a health-care organization, and more recently, as a lean consultant, I have seen firsthand how lean in the finance and accounting function can promote lean in the organization not just relative to strategy deployment, but in all aspects of lean. I will share examples from my experience that illustrate how lean finance helps make upstream problems visible, and how lean finance provides consultative products and ser v ices to support the organization in increasing customer value.
Read the entire article by Mike De Luca's from Cost Management:
The Lean Profit Model
This workshop will show the connectivity between the various types of lean tools, techniques and concepts and how the benefits of using lean can be captured in quantitative aspects.
Lean Financial Planning – How well does your budget serve its purpose?
How well does your budget serve its purpose? Asking this question can lead to a rich and revealing discussion with operational and finance teams alike. In order to gauge the effectiveness of the budget (both the process and the set of outputs or tools), we likely need to start by agreeing what effectiveness is measured relative to. What is the purpose of the budget? Why do we engage in the budget process and produce the outputs it generates? How do we use the budget during the year to check-adjust performance? Who are the end-users of the budget and what are their requirements? How does the budget help us improve customer value – and do our customers care if we have a budget? I do not intend to be exhaustive in this article; there is an entire body of knowledge around Lean Financial Planning – and the closely related body of knowledge on “Beyond Budgeting.” My hope is to inspire curiosity and provide concrete next steps to explore the opening question – “how well does your budget serve its purpose?” – in your organization.
Lean Accounting Is Simpler, Faster, Cheaper, and More Accurate Than Traditional Management Accounting, so Why Don’t More Companies Use It?
Five thought leaders of the movement recently held a special conversation about what lean accounting is and isn’t, why it is vital to sustaining a culture of continuous improvement, how it relates to GAAP, and why it provides a truer picture of how your company is performing. As long-time lean accounting practitioners, they also liberally share practical, real-world examples of how traditional accounting can mislead and misinform decision-makers.