Surveying the Field: Accounting and performance measurement at facilities engaged in lean transformation

Presented By:

Larry Grasso

Session Abstract:

I will present observations and lessons learned from a field survey and follow-up field study of facilities at various stages of lean transformation. 368 facilities from 195 different companies responded to an online survey, providing information about their organizational culture, their lean management practices, their adoption of lean accounting and management control practices, and their assessment of the impact of their lean initiatives on organizational performance. Three colleagues and I then conducted a field study of seven of the facilities.

I will provide a broad view of current state of accounting and performance measurement practices we found. I will identify successful and unsuccessful practices and the conditions associated with their success or lack of success. Using examples from our field study, I will identify obstacles to the lean transformation in accounting, showing where and when the lag between lean implementation in operations and accounting appears to have the greatest impact on organizational performance

Learning Objectives:

“In this session you will learn…”

  • The accounting practices currently being used by a large sample of organizations adopting lean management practices.
  • The extent of management accounting system changes that have been made by companies to support lean initiatives.
  • The “best practices” that are being used by successful lean implementers, and the conditions associated with their success.
  • Obstacles to the lean transformation in accounting, and the conditions where the transformation lag between accounting and operations has the greatest impact on performance.

About the Facilitator:

Lawrence Grasso is a Professor of Accounting at Central Connecticut State University. He teaches a course in lean accounting offered to undergraduate Accounting majors and graduate MBA and Technology Management students. Larry’s primary research interests are performance measurement, performance evaluation and incentives to support lean management and environmental and social sustainability. He is a co-author on the second edition of Practical Lean Accounting. He was also a contributing author to the Shingo Prize winning Better Thinking, Better Results: Using the Power of Lean as a Total Business Solution, and he wrote a chapter in Lean Accounting: Best Practices for Sustainable Integration. He is author or co-author of several cases and articles appearing in journals such as The Accounting Review, Cost Management, Management Accounting Quarterly, and the IMA Educational Case Journal. Larry has presented at numerous conferences nationally and internationally. He has served as a consultant for firms in the aerospace and metal finishing industries.