
6 • e Lean CFO: Architect of the Lean Management System
manufacturing. But Lean is an operating system that is totally incommen-
surate with mass production. Continuing to make business decisions using
standard costing in a Lean company will lead to conict and confusion.
In order for a Lean business strategy to lead to nancial success, the
Lean CFO must remove standard costing from all business decisions.
Business decision methods in Lean companies need to be aligned with the
economics of Lean. e companies must understand the nancial impact
of decisions based on (a) how demand is changed due to creating customer
value, and (b) how spendi