In a previous blog, we discussed applying the first principle of Lean (‘adding value’) to the Finance function. Today, let’s consider the second Lean principle: ‘Reducing waste’.
Yes, there can indeed be waste and missed opportunities in any Finance Department.
Here are a few common examples:
- inefficient collection processes
- the same data being manually entered several times in different systems
- reports being generated for people that do not understand them and/or do not use them (in which case they are obviously not helping to guide the business)
- complex report generation that requires the collection/analysis of data from multiple systems
- cost allocation that does not add value to the decision making process, and
- inappropriate budgeting processes that do not deliver outcomes aligned with the strategy of the business.