Building a Bridge of Understanding
Presented by Rocco Surace and Facilitated by Eli Schragenheim
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About the Webinar:
Individuals who have followed TOC, as well as individuals who have followed the developments in cost accounting and performance measurements since the 1980’s are likely aware of the criticism that Dr. Eli Goldratt had on cost accounting, calling it “Cost accounting is public enemy #1 to productivity”.
It also is becoming more well known how performance measurements can push performance into counter-productive actions.
So, why is this happening? What should be the "RIGHT" accounting? Are all these accounting principles, methods and measurements in use wrong? The correct answer is definitively no – they are NOT all wrong! (please excuse the almost double entendre). Cost accounting principles have their needed place, performance systems have their needed place, management accounting has its place – and so on.
What to do? Let us start with the need to understand the important objectives behind theses well accepted accounting principles and performance systems. Once we understand them, we can identify the gaps between the standard reporting of an organization and the most times contrarian needs for making sound decisions.
We can build the Bridge of Understanding”, which will allow us to predict the apparent conflicts that will surface between the various methods and use that to establish the effective ways how to both maintain the required standard accounting principles and make the decisions that help the business be profitable.
The driving objective of Through Put Economics is to enable sound management decisions based upon profitability while considering what is good for the organization. It will not be difficult to understand.
About the Presenter: Rocco Surace is a well known figure in TOC and also as an active Senior CPA. Rocco had a close relationship with Dr. Eli Goldratt, served as the Chairman of TOCICO for several years, and he is a co-author of Throughput Economics: Making Good Management Decisions together with Eli Schragenheim and Henry Camp.
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