One of the true experts in the Lean Accounting world is Jim Huntzinger. He has over twenty years experience developing Lean enterprises through system design and development, implementation, and guiding organizations both strategically and tactically through the transformation process. He is Founder and President of Lean Frontiers.
Joe: Does the Lean accounting process empower the company to help to drive market share or increase revenues?
Jim Huntzinger: Absolutely. I think again; it comes back down to a couple of things. One is again, understanding what your real costs are so, again, understanding what the value proposition is, understanding what the market will bear from a price standpoint, then trying to align yourself. I mean you’re trying to align yourself to what that is, you know it’s, you’re not going to have much luck trying to align the market to what you would like it to be, aligning yourself to that. So when you know that, and you know what your internal costs are or if you’re developing a new product, you know what your internal costs need to be, then that could give you much better information that again internally from your accounting people to your marketing people on, “This is where we need to be at.”
Again, information flowing both ways. Hopefully marketing people are understanding what the market wants, what the market desires in price, in features, in product and are giving that feedback into you know the developing engineers, the accountants, the operational people, so they’re; they have good information; they can align the organization to present out a good value proposition to the customer.
That’s a loop that needs to work both ways and again, both those people in the organization give; I don’t say they have to be intimate with what each other’s doing, but have an understanding of what each other’s doing and what each other needs and then you just get a much better flow of information from an accuracy standpoint as well as with just from a need standpoint. What information, as marketing people, what information do we need to be supplying back into operations, into product development, into accounting.
They have the information they can use to develop what they need to and then vice versa. You know accounting, working with product development, working with operations. What information do we have at this point that we can feed back to marketing so they can take that information back out on the market and get some reasonable feedback from it?
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