Operational accounting 8


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Operational accounting 8

  1. 1. Connotation Transpar- ency Logic Trust Exchange
  2. 2. TEAM WORK Influence + Intelligence = Social Capital
  3. 3. Can An Accountant manage factory operation?
  4. 4. Yes, because … Data-driven vision leads to pragmatic attitude Conservative which reduces risk exposure of the company Details + logic enable flexibility All activities becomes accountable
  5. 5. No, because …. Stingy Not sensitive to people care and people management Only look at figure on every paper and less patient enough The figure cannot be creative itself, it is only a tool for revelation of the reality
  6. 6. The figure cannot tell how to re- structure the organization, it can only tell whom is not qualified to work on index But problem is usually originated from improper construction of platform
  7. 7. Theory of Constraints (TOC) 1. Identify the system’s bottlenecks 2. Decide how to exploit the bottlenecks 3. Subordinate everything else to the above decision 4. Elevate the system’s bottlenecks 5. If, in a previous step, a bottleneck has been broken go back to step 1
  8. 8. The Goal Throughput The rate at which the system generates money through sales Production not sales is inventory Inventory Things in system intended to sales Operational Expenses Money spent to turn inventory into throughput
  9. 9. TOC process steps are to answer What to change? What to change to? How to cause the right people to make the change?
  10. 10. Do you think … The lack of financial knowledge is the bottleneck of your personal career development and your organizational development as well Warning! Bottlenecks never stop moving!!
  11. 11. Epilogue Create the platform of socialization within the organization (Organizationalisation) Principles to assimilate Collaborative Rational Thinking Data first, Modeling second, Action third and Review final Knowledge Transparency Operation for Financials!!
  12. 12. Solid Citizen Like a society, there are 3 classes Senior Level Middle Level Working Level The middle level is the solid citizen Interpret the objectives from the senior level and convert to action Provide concrete instruction to working level Liberal Education nurture all-rounder
  13. 13. Cohesiveness & Affinity What can line up people? What can persist relationship/alliance? In what way can you earn respect? Why people break up in an organization? People quit people, not company!
  14. 14. How critical financial knowledge to Gen. Mgt? Let you look at detail while doing macro- management Clear objective criteria to measure performance Retributive justice • Reward people for their effort in the past Utilitarian justice • Emphasize on future result of rewarding to drive people to do better
  15. 15. Power Should always be distrusted, in whatever hands it is placed Sir William Jones
  16. 16. Exclusive possession of knowledge creates power with the possessors Power distance inhibits square exchange of idea, knowledge, respect and trust Good player of figure is short-lived power player
  17. 17. Subjection Attachment of self-rejection Not voluntary, therefore, no giveaway Appreciation helps relax hostility, emotional argumentation and leads to recognition
  18. 18. Challenge the orthodox Surfacing the dogma Finding out the absurdities Going to the extremes Searching for the “and” Is finance operation one of the Orthodox?
  19. 19. Secularization of Knowledge Finance & Accounting Supply Chain Quality Assurance HRM Should we secularize hierarchy?
  20. 20. Empowerment Figure/Index can serve as the basis of being empowered It also represents being entrusted with expected result (of course, reasonable expectation) Principal & Agent need the bridge
  21. 21. Financial knowledge A tool to bridge different functions to the objective Good use of it can help empowerment of staff
  22. 22. How to permeate your advocates Articles contribution to internal periodicals Poster BBS Talk the walk Stories Blog
  23. 23. 1 2 3 an integrating discipline relying on collaboration of functions and people Manufacturing is .....