A common criticism of Lean Thinking is that it is not aligned with traditional accounting practices, which means that can be a challenge to get organisationally influential financial managers to buy into the whole concept. Lean accounting was developed to recognise that if you are implementing lean, you’ll need an additional perspective on how you measure, control and account for your operations that can complement the established approaches. This article introduces Lean Accounting and sets the scene for its adoption in order to have an effective method to account for lean’s real impact.
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The concept of lifetime value is well founded in the sales and marketing field, where there has been a growing appreciation that it is cheaper and more profitable to maintain than gain and that a business needs to think over the long term regarding its customer relationships, rather than take a narrow, single transaction perspective. HP’s David Packard famously once stated that “marketing is too important to be left to the marketing department” implying that all employees are part-time marketers and so those in operations and service delivery also need to grasp the lifetime value concept and ensure that they play a role in nurturing customer relationships, so as to maximise both the return for the company and the value received by the customer.
This article first appeared on tenfold
This article was written by Simon Elias of the LCS and Richard Harrison of Sales Transformation Partnership. Introduction While lean thinking is increasingly being applied beyond the operations arena in many organisations, sales and marketing (S&M) appears to have been particularly immune to the lean mantra. The reasons behind this are...