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    New Blog Address: management.curiouscatblog.net

    Sunday, January 15, 2006

    Lean Accounting

    Lean Accounting (Lean Beans) by Sue Sondergelt

    We must get rid of Standard Cost and Absorption Accounting for managing the business. This is 1930's thinking, when business was all labor, little material, and very little overhead. Today business is all material, very little labor, and moderate overhead.

    A nice short article introducing accounting issues which influence organizational behavior in the counter-productive ways.

    Accountants today need to change the way they think! We need to lose old paradigms! We need to think in terms of processes, not transactions. We need to think Cost Management, not Cost Accounting. We need to be leading Teams, not reporting history.

    • More lean thinking articles
    • Profit Beyond Measure: Extraordinary Results Through Attention to Work and People by H. Thomas Johnson and Anders Broms. This book details how two extremely profitable manufacturers, Toyota and the Swedish truck maker Scania, have rejected the traditional mechanistic mindset of managing by results.
    • Lean Accounting Summit

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