consulting

Regulators Are Not the Customer!

Regulators Are Not the Customer!

Is finance the enemy of breakthrough innovation…

… because they misidentify who their customer is?

“Big-picture, finance interfaces with regulators/auditors but ultimately needs to see their customer as the one who buys the products/services. It puts finance on the same side as the business, a partner/collaborator that should challenge assumptions and think creatively within the finance space.”

Sam Winter, Director of Finance, Thrivent Financial

Emphasizing Precision Over Real Progress

Emphasizing Precision Over Real Progress

The Lean Accounting Movement introduced some groundbreaking changes in how we measure, report and plan for organizational costs…

  • Budgets are bad… rolling forecasts allow us to take away the cliff mentality and intend to provide a platform on which we can become nimbler.

  • Move away from full-absorption cost accounting and allocation of “monuments” to a model designed to measure “economic value added.”

  • Visual process and value-stream measurement, allowing everyone to see how an end-to-end process is performing, enabling timely response and adjustments to help both customers and productivity.

Organizational Structure Feeds Silos, Chaos and False Sense of Success

Organizational Structure Feeds Silos, Chaos and False Sense of Success

The typical organization today is led by decision makers who are “vertical” silo owners. The organizational chart, reinforced by traditional budgeting and yes, even forecasting methods, results in decision makers who are structurally encouraged to think only within their own departmental scope. All too often doing so without insight into or knowledge of what would create increased value for the customer or capture new markets who have unmet needs.

A Ton of Waste

A Ton of Waste

Isn’t it sad to admit that the primary functions of finance are, by their very nature, a ton of waste?

As a CPA and information systems consultant, I remember when I realized that I was seen as the “enemy” of the LEAN experts. Management/cost accounting had become mired in the mud –actually driving wasteful recording, stuck in details that represented “muda” (waste) on the plant floor, adding no value to the customer, to the product or ultimately to the mission or objectives of the company.