Throughput Accounting

ship on water with oil boom in foreground

Challenge Your Assumptions about the Process

To increase output, whether in a disaster or in everyday pressures, you must challenge your assumptions to find solutions.  Usually, the solution is not obvious (otherwise, it would have been implemented, right?), so you have to dig deeper.  Challenging assumptions helps us see where we can change the process.  There is still more to get out …

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Manage and Align Performance by Applying Uniform Standards

The more contractors or departments involved in a project, the more chances for variation and, often, more confusion.  There is always the opportunity for misalignment and miscommunication.   The larger the organization, the more opportunity for missing cues on priorities and direction.  For the process owner, the challenge is to align a team to drive progress towards …

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Throughput Accounting; Improving Decision Making

Today, companies are focused on increasing throughput – the rate at which a company generates money through sales. They want to expand products, customer base, markets, and so on. They want to grow as much as possible, as quickly as possible. They do not want to focus on shrinking their company or labor force. Yet, the most commonly used financial tools tell companies to focus on cutting costs in order to maximize profits, making expenses the focus of companies, not sales generation. This often leads management to make decisions that actually harm a company.

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