3Lean is the Strategy

DOI: 10.4324/9781003304098-3


If an architect is going to design a new building, they must start with the foundation of the building. A poorly designed foundation will not be able to support the building. Applying this analogy to lean management accounting, the foundation that’s needed is lean thinking.

Based on my experience, there are five aspects of lean that create the strong foundation for a lean management accounting system:

  • Lean is the strategy
  • The value stream organization
  • People solving problems
  • Lean operating practices
  • The economics of lean

The relationships between each of these aspects of lean and a lean management accounting system need to be understood by a Lean CFO in planning and executing ...

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