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After doing so, you will be perceived as a value-added member of the organization.
This article provides analysis and thought-provoking questions regarding accounting's support for a Lean Six Sigma management philosophy. As Lean Six Sigma managers change their approach to managing operations (i.e. evolve), accounting/finance departments must also evolve and change their approach to performance measurement. We analyze the critical factors of measurement system relevance and its time horizon. Performance measurement systerns need to be useful in driving future financial improvements and have a longterm (not a short-term) focus. We also note the apparent usefulness of the BaIanced Scorecard to Lean Six Sigma adopters and discuss the use of Lean Six Sigma for accounting/finance processes.
A few years ago, one of the authors attended the annual Lean Accounting Summit. One prominent practitioner of Lean, while addressing the hundreds of accountants assembled at the conference, spoke of accountants as barriers to an organization's progress. He referred to us as "concrete heads." In his mind, accounting had not evolved to the state necessary to support an organization's Lean journey.
One of the key roles of the accountant is that of score keeper. They maintain and communicate results of the organization's performance measurement system. This performance measurement system should assist managers in their efforts to drive future improvements. If it cannot, it is just a tool for casting blame. Many organizations have adopted Lean Six Sigma in recent years, requiring a new approach to accounting and performance measurement. As Lean Six Sigma managers change their approach to managing operations (i.e. evolve), accounting/finance departments must also evolve and change their approach to performance measurement. This article will explore some key indicators of an accounting/finance department's evolution and give benchmarks for assessing your department's progress. We will describe problems that hinder the modern performance measurement system's usefulness to managers in driving improvements so that you can avoid them or take appropriate corrective actions.
Survey
Cost Management published our article examining the characteristics of successful Lean Six Sigma organizations in January 2010. We surveyed accounting and finance executives about their organizations and Lean Six Sigma. We found that almost half (46.7 percent) had adopted Lean, Six Sigma or both (Lean Six Sigma). We asked respondents several additional questions if...