Silo, as they say, must be eliminated. But how long does it take, What is the talk? What is the walk? All approaches fail. The remedy is at the system's logical level. Science is involved.

At the logical level, there is only one solution: TameFlow with Throughput Accounting.

Why ? It needs to go straight to the CxO level. 

Culture is a reflection of a company's system, which are a reflection of top management's mental models. Accounting is the most pervasive system of any company. If a culture change is contemplated, the prevailing cost accounting systems have to go.

 
 

Outline/Structure of the Talk

We will address the following items: 

Complexity & Inherent Simplicity

Culture and decision making by consensus or unanimity ? 

The obsession of cost accounting to make all cost variable and hence have data that is unreliable and useless to decision making 

The 3 components of Throughput Accounting that a five year old can understand: I, OE and TVC 

The close ties between the Theory of Constraints and Throughput Accounting

The simplicity and decentralization of decision making with Throughput Accounting.

Learning Outcome

The CxO will understand that in the history of mankind, not a single optimal managerial decision has ever been made with cost accounting data. Yet we persist. The madness has to stop.

Cost Accounting is a pillar of Financial Reporting that requires GAAP. No one, ever, has hinted in all the IFRS, FASB and GAAP directives that this cost accounting data be used for decision making, yet is it abused at great financial cost and human suffering.

Why? 

All of these answers will be made available ....

Target Audience

CxOs

Prerequisites for Attendees

Understanding of Cost Accounting. Then we will expose all of the cognitive biases that creates layers of permanent overhead costs that leads to the company's demise. 

For that, watch my livestream with John Coleman out on Sept 01 ... The youtube will be posted ... I will deal with Throughput Accounting 

You can watch me live and register here : https://www.meetup.com/Lean-Product-Delivery/events/272430224/

 

schedule Submitted 3 months ago