Lean Forward or Fall Back: How Applying Lean Principles Can Improve the Finance Function

February 2012
  • Print-friendly version
Lean Forward or Fall Back: How Applying Lean Principles Can Improve the Finance Function

At a glance

Accounting, regulatory, and management challenges press finance leaders to boost information quality. How can you cut costs and improve efficiency? Read on.

Finance leaders are facing a hailstorm of accounting, regulatory, and management challenges, creating pressure to improve the efficiency of Finance and information quality. Externally, stakeholders and regulators demand more transparent and reliable information in less time.

Internally, business leaders require fast, accurate, and increasingly transparent information to support smart, informed business decisions. Meanwhile, overlapping and inconsistent data, manual reporting, disparate systems, and aging technology lead to poor information quality.

By reducing costs and releasing capacity, Lean can contribute significantly to the bottom line. Financial institutions leveraging Lean report results of 20-30% cost reduction within 12 to 18 months and maintain cost-efficiency ratios below the industry average.

Unlike other process improvement methodologies, Lean does not require significant capital investment. Lean concepts and tools are relatively easy to learn and apply – often boiling down to common sense.