Lean Six Sigma and Lean Finance - What is it, and how will it help me
Think sustainable growth.
Rather than obsessing with the expense side of the income statement and targeting employee layoffs, lean accountants recognize that net income can also be increased through sustainable sales growth. Using re-deployable staffing to alleviate constraints and grow the business increases employee commitment to the organization. Accountants can help in this change of focus by identifying growth opportunities to help people, machines, and space become more available.
For example, traditional accounting is compelled to allocate 100 percent of costs to products. Lean accounting allocates only the costs utilized by enterprise value streams. The value stream then continues to reduce its cost, including reducing inventory.
The cost of unutilized resources are made visibleso the money can be redirected to grow the business—either increase sales or develop new markets.
Analyse performance over the long term.
Lean accountants can strike a better balance between the short-run and long-run views of the business through longer term monitoring of the business value streams.
Partner with staff.
Creating a culture of cooperation is better than a micro management and control culture. Without abandoning proper controls, Lean accountants focus on operational improvements.
Similarly, lean accountants seek to build a shared commitment to common enterprise goals by participating in Kaizen events across the organization. Reducing the time consumed by Statutory Financial reporting and compliance frees up time for accountants to provide information to owners and managers.