Conversations, not Conclusions

One of the primary differences between traditional management accounting and lean management accounting is lean management accounting focuses on creating conversations, while traditional management accounting focuses on drawing conclusions.

In traditional management accounting, information about past performance flows upward in a company to accounting and executives, who draw conclusions about performance and dictate “changes” that need to be made. It is then up to the managers to implement the changes dictated.

Lean management accounting focuses on creating cross-functional, collaborative conversations about current operating and financial performance and how to improve both over time. These conversations focus on understanding the true cause-effect relationships between lean operating practices and financial performance. Box Scores drive this conversation.

The effectiveness of lean operating practices are measured by the Box Score’s lean performance measurements. Capacity measures how effectively a value stream is “spending its time” on productive, value-added activities or nonproductive, non-value added activities. Capacity also measures how much capacity is created by improvement activities – available capacity. The value stream income statement in a Box Score reports the actual revenue and actual costs of a value stream. 

The three components of a Box Score create conversations around questions such as:

  • What level of improvement is necessary to actual serve customers better and drive sales growth?
  • What is the financial impact of improving quality, delivery and lead times?
  • If we want to improve financial performance, what operational changes and improvements are necessary?
  • How do lean practices manage costs?
  • How can we increase capacity without increasing costs?
  • What is the operational and financial impact of a business decision we have to make?

The relationships between lean operating performance and financial performance are dynamic, not static. Understanding these dynamic relationships requires using PDCA to understand the root causes, and PDCA requires the right people to have a conversation and draw the right conclusions about root causes.

Want to ensure the success of a lean management accounting transformation? Don’t think of a Box Score as a method of reporting, think of it as a conversation piece to be discussed.

Webinar: Planning and Managing Value Streams

May 10, 2022 @ 11:00 am 12:00 pm

Value Stream Management: Integrating Lean Accounting and Lean Practices

Part 2 – Planning and Managing Value Streams

May 10, 2022, 11:00 AM US Eastern time

Value stream management is the integration of lean accounting with lean practices into a holistic management system designed to serve customers better, improve productivity and improve financial performance.

A value stream management system is deployed at the value stream or business process level of a lean company and focuses on practices to control, improve, plan and manage any operational value stream or administrative business process – in any lean company, in any industry. 

In this webinar you will learn:

  • Planning value streams
    • Integrating lean accounting and Hoshin
    • Integrating lean accounting and financial/operational planning
    • Calculating long-term financial impact of lean
  • Managing value streams
    • Organizing the value stream
    • Lean decision making standard work
    • Standard work for leaders
    • Respect for people

Join Nick Katko and Mike De Luca on May 10, 2022 at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Lean practitioners, operational leaders, finance and accounting staff and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1 

Free

Webinar: Controlling and Improving Value Streams

April 12, 2022 @ 11:00 am 12:00 pm

Value Stream Management: Integrating Lean Accounting and Lean Practices

Part 1 – Controlling and Improving Value Streams

April 12, 2022, 11:00 AM US Eastern time

Value stream management is the integration of lean accounting with lean practices into a holistic management system designed to serve customers better, improve productivity and improve financial performance.

A value stream management system is deployed at the value stream or business process level of a lean company and focuses on practices to control, improve, plan and manage any operational value stream or administrative business process – in any lean company, in any industry. 

In this webinar you will learn:

  • Controlling the value stream
    • Performance measurements
    • Visual management
    • Team meetings
    • Lean problem solving
  • Improving value streams
    • Structuring improvement activities
    • Measuring improvement activities
    • Using improvement to manage costs

Join Nick Katko and Mike De Luca on April 12, 2022 at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Lean practitioners, operational leaders, finance and accounting staff and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1 

Free

Webinar – Calculating and Measuring Value Stream Capacity

March 8, 2022 @ 11:00 am 12:00 pm

Calculating and Measuring Value Stream Capacity

A primary outcome of continuous improvement efforts undertaken in a lean company is to create capacity. A company can use additional capacity to improve delivery, quality, lead time, productivity, cost, safety, and morale. 

In lean accounting, it’s important to have clear, intuitive measures of capacity to quantify the following: 

  • Capacity created due to improvements.
  • How the current capacity is being used: for activities that are value-added, non-value-added but necessary, or in some cases simply unnecessary.
  • If there is adequate capacity to deliver a product or service on time. 
  • Where there is available capacity and determine how it can best be utilized.
  • Where there is a lack of capacity and potential overburden as a result.

In this webinar you will learn:

  • Why capacity needs to be measured
  • The process to calculate capacity
  • How to calculate capacity in manufacturing
  • How to calculate capacity in service

Join Nick Katko and Mike De Luca of BMA on March 8, 2022, at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Finance and accounting leaders, managers and team members and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1

Creating an Effective Lean Management Accounting System

February 8, 2022 @ 1:00 pm 3:00 pm

Creating an Effective Lean Management Accounting System

A BMA online course

February 8, 10, 15, 17, 20022

1:00 – 3:00 PM US Eastern time

Pricing and Registration

  • Individual: $600 per person
  • Group discount 20% for 3 or more from same company

To register:

https://www.eventbrite.com/e/creating-an-effective-lean-management-accounting-system-tickets-252215853407

Course description

Creating an effective lean management accounting system requires the integration of box scores with lean practices into a holistic management system designed to serve customers better, improve productivity and improve financial performance. 

A lean management accounting system is deployed at the value stream or business process level of a lean company and focuses on practices to control, improve, plan and manage any operational value stream or administrative business process – in any lean company, in any industry. 

This course is more than a training workshop. It is designed to help you develop a specific action plan to implement a lean management accounting system. This course will use training, exercises, discussion and simple assignments between sessions as learning methods. 

What you will learn in this course:

  • Value stream organization
  • How to build a box score
  • Establishing daily lean management practices
  • Lean problem solving using box scores
  • Structuring and measuring continuous improvement
  • Developing and using lean performance measurements
  • Integrating lean accounting in operational management and decision making
  • Integrating lean accounting into Hoshin and planning activities
  • Managing based on respect for people

Course design:

  • Four 2-hour online sessions – training, discussion, exercises and reviewing assignments
  • Four 1-hour assignments to develop your action plan
  • One 1-hour online one-on-one session to finalize your action plan
  • Unlimited coaching with BMA between sessions

Self-paced learning option

Don’t worry if you can’t attend the sessions live. All sessions will be recorded. You can complete the course assignments at your own pace and set up convenient one-on-one coaching sessions to review your assignments. 

Who should attend:

  • Executives and owners
  • Finance and accounting
  • Lean leaders and operational managers
  • The best benefit from this course will come from a small cross-functional team attending

Course Schedule

Session 1: February 9

  • Training – Lean management overview
  • Training & exercises – Building a Box Score
    • Performance measurements
    • Value stream income statement
    • Value stream capacity
  • Assignment: Box Score assessment

Session 2: February 11

  • Review session 1 assignment
  • Training & exercises – Controlling the value stream
    • Performance measurements
    • Visual management
    • Team meetings
    • Lean problem solving
  • Assignment: Assess methods to control value streams
  • Improving value streams
    • Structuring improvement activities
    • Measuring improvement activities
    • Using improvement to manage costs
  • Assignment: Assess methods to improve value streams

Session 3: February 14

  • Review session 2 assignment
  • Planning value streams
    • Integrating box scores and Hoshin
    • Integrating box scores and financial/operational planning
    • Calculating long-term financial impact of lean
  • Assignment: Assess methods to plan value streams

Session 4: February 16

  • Review session 3 assignment
  • Managing value streams
    • Organizing the value stream
    • Lean decision making standard work
    • Standard work for leaders
    • Respect for people
  • Assignment: Assess methods to plan value streams

Session 5: Date & Time arranged: Review your action plan

$600 per person; $480 per person for groups of 3 or more from same company

Webinar – Managing Costs with a Value Stream Income Statement

February 8, 2022 @ 11:00 am 12:00 pm

Managing Costs with a Value Stream Income Statement

A value stream income statement is an essential analytical cost management tool for a lean organization. It presents revenue and expenses in a usable, easy to understand format for internal users, which allows them to establish the relationships between lean operations and costs.  

In this webinar you will learn:

•          The principles of value stream income statements

•          How to simplify the presentation of costs for analytical purposes

•          How to use value stream costs to achieve cost reduction over time

Join Nick Katko and Mike De Luca of BMA on February 8, 2022, at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Finance and accounting leaders, managers and team members and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1

Podcasts – Practicing Lean Accounting

Here is a list of podcast links where we discuss our new book Practicing Lean Accounting:

Podcast Links – Practicing Lean Accounting

Mark Graban

Stephen Dowling

Mark DeJong

Katie Anderson

Gemba Academy

https://blog.gembaacademy.com/2021/11/25/ga-399-practicing-lean-accounting-with-mike-de-luca-and-nick-katko/

JIT Cafehttps://www.jitcafe.com/post/finance-meets-lean

2022 Lean Accounting Community Chat

January 13, 2022 @ 11:00 am 12:00 pm

BMA’s monthly lean accounting community chat will be held on the following dates in 2022 at 11:00 US Eastern time.

January 13

February 10

March 10

April 14

May 12

June 16

July 14

August 11

September 15

October 13

November 10

December 15

These chats are free to attend, but you must register here:

https://www.eventbrite.com/e/234241060317

After you register you will receive a Zoom link that is valid for all 2022 community chats, so please remember to save it.

Please contact Nick Katko if you have any questions: nkatko@maskell.com.

Free to attend

Webinar – Creating a Lean Performance Measurement System

January 11, 2022 @ 11:00 am 12:00 pm

A sound lean performance measurement system links a company’s lean strategy to all performance measurements and goals. Using the Linkage Chart framework, a company can shift from its traditional measurements, based on historical results, to process-oriented measurements that drive lean problem solving. Using a Linkage Chart, a company can be assured that its performance measurement system is integrated and aligned with company strategy.

In this webinar you will learn:

  • The principles of a lean performance measurement system
  • The Linkage Chart framework steps to follow to develop your measurements
  • Basic lean performance measurements for service and manufacturing organizations. 

Join Nick Katko and Mike De Luca on January 11, 2022 at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Lean practitioners, operational leaders, finance and accounting staff and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1 

Webinar: Practicing Lean Financial Leadership in Lean Accounting

December 8, 2021 @ 11:00 am 12:00 pm

In lean accounting, lean financial leadership is not just about the CFO, it’s about all of accounting’s interactions with the rest of the company, its customers and external stakeholders. Whether you’re a financial analyst, staff accountant, payroll specialist, billing team supervisor or finance executive, you have a “lean financial leadership” role. There are three sustaining lean financial leadership practices that that should be incorporated into each team member’s daily work and the accounting function as a whole. These practices will help accounting model and lead the change every day.

In this webinar you will learn the  3 sustaining practices:

  • Create and implement a lean accounting plan
  • Develop and engage staff
  • Integrate lean accounting into the lean strategy

Join Mike DeLuca and Nick Katko of BMA on December 8, 2021 at 11:00 am Eastern US time for this free webinar, which will last one hour. 

Don’t worry if you cannot attend the webinar live because of other commitments or the time of the live webinar is not good for you. This webinar will be recorded and will be made available to everyone who has registered. We will send everyone who registered an e-mail link to listen to the recorded webinar. 

If you have any questions about this webinar, please contact Nick at nkatko@maskell.com.

Who Should Attend: Finance and accounting leaders, managers and team members, operations and functional leaders, and executives and owners of lean organizations.

Continuing Education Credits for CPAs: 1 hour of CPE credit (must attend live webinar)

Field of Study: Specialized Knowledge

Advanced Preparation: None

Program Level: Basic

Delivery Method: Group Internet

CPE Credits Earned: 1 

Free