“Yeah runnin’ down a dream; That never would come to me; Workin’ on a mystery, goin’ wherever it leads; Runnin’ down a dream[1].”

According to William Levinson there is a divergence in corporate strategy from an operating and reporting point of view, which leads to a misallocation of resources utilized to produce decision making information[2].  When an organization is focused primarily on finance-based metrics, like bank covenants, compliance for IRS or SEC regulations, and other guidance for exporting of goods or services outside of the country, suboptimal performance is a guaranteed result.  This article will address why this occurs and how we can prevent this from happening in our organizations.  Leading with our Tom Petty theme, organizations need to lead with focused goals and metrics that direct employees toward optimal performance. Optimal performance can be achieved by using lean manufacturing and Just-in-Time strategies.  Reviewing the history of these strategies can provide insight toward optimal performance for which the roots can be found in the early stages of the industrial revolution and Ford Motor Company.

[1] Writer(s): Jeff Lynne, Michael Campbell, Tom Petty; album: “Southern Accents” (1985); Tom Petty

[2] http://www.industryweek.com/leadership/when-finance-runs-factory by William Levinson, principal, Levinson Productivity Systems, October 24, 2014

Published:  Journal of Cost Management.  March / April 2018 Issue.

Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior

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