Bill Waddell, my colleague over at Evolving Excellence, has written in support of Lean Accounting as a critical component of Lean transformation, particularly because Lean Accounting methodology delivers what GAAP accounting was never designed to do. This message must reach more ears…
Trained as a CPA, and having actually practiced in this profession for a number of years, I can speak first-hand about how important Lean Accounting is to the success of a Lean Transformation.
GAAP accounting is quite simply mis-information when it comes to understanding what’s really happening in the Gemba. I speak at least a few times a month with CEOs who are dealing with bad numbers, numbers which do not reflect true progress being made on Lean initiatvies within their operations.
So, when some of these CEOs subsequently withdraw their support for Lean because “Lean isn’t working,” why should we be surprised? They’re stopping the patient’s treatment because the patient doesn’t appear to be recovering. Hey, let’s take another look at that thermometer and blood pressure gauge, and maybe avoid a tragic outcome.
This is Adam Zak, and that’s how I see it…
