The Lean Cfo (architect Of The Lean Management Accounting System)

By (author) Katko Nicholas S.
Short description/annotation
This book is not about debits, credits, or accounting theory. Instead, it describes how a chief financial officer (CFO) becomes a Lean CFO by leading a company in developing and deploying a Lean management system. The finance team, business executives, and Lean leaders will all benefit from its forward-thinking improvement approach.
Description

This book is not about debits, credits, or accounting theory. It’s about how a chief financial officer (CFO) becomes a Lean CFO to lead the transformation of a company’s management accounting system into a lean management accounting system.

It’s been well established in lean companies that traditional management accounting systems do not provide relevant and reliable information to decision makers. The CFO, as steward of a company’s management accounting system, must provide the leadership to improve the quality of the information produced by a company’s management accounting system so it is aligned with a company’s lean strategy, lean operations, and continuous improvement.

The integration of a lean management accounting system with a company’s lean strategy will lead to improved decision making by all users and drive long-term financial success. Lean management accounting helps all users, from executives to line managers, better understand the relationships between lean operating performance and financial performance.

Written in the style of a practice guide, The Lean CFO is written not just for CFOs, but for all stakeholders of a company’s management accounting system, such as executives and owners, lean leaders, functional managers, and accounting professionals.

Table of contents

Chapter 1: The Lean Management Accounting System Chapter 2: Leading a Lean Management Accounting Transformation Chapter 3: Lean is the Strategy Chapter 4: Lean Performance Measurements Chapter 5: Measuring Capacity Chapter 6: Value Stream Income Statements Chapter 7: Value Stream Management Chapter 8: Lean Decision Making Chapter 9: Dealing with Standard Costing Chapter 10: Dealing with Standard Costing: Transaction Elimination Chapter 11: Dealing with Standard Costing: Lean Inventory Valuation

Review quote

"The Lean CFO is the best lean book I have read, and I have read them all. It is perfect for management teams looking to make a huge immediate impact."

• Steven Vitale - President, Midwest Industrial Supply, Inc.

"Nick explains The Lean CFO from direct experience. Experience as an accountant, as a practicing CFO, as a leading lean accounting thought leader and pioneer, and as a guide and coach to business executives leading their organizations to successful change. Nick has been there and done that for the lean organization and The Lean CFO is the guidebook and plan."

• Jim Huntzinger - President and Founder, Lean Frontiers

"Lean accounting is the essential backbone of a company’s lean management system because it provides useable and understandable information that aligns lean operations with financial performance. Classical management accounting and cost management simply cannot meet the instant and immediate information requirements of a lean company. The Turkish Lean İnstitute has worked with Nick has worked several years and translated the first edition of The Lean CFO into Turkish. We highly endorse the second edition of this book."

• Yalçın İpbüken - President, Lean İnstitute Turkey

"This book takes you on a journey which many would like to travel, and many may have started but not transitioned. Based on practical examples and case studies we get insights into how accounting can progress from transactional processing to a value added function