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| David Cuykendall Richland, Washington |
Conceptual Threads
Several conceptual threads run though accounting logics. Conventional financial management uses very restricted, IT centric kinds of power to financially lead and control your enterprise. In contrast, accounting logics make many more kinds of power available to you. Obviously, the more kinds of power you have available to you, the more effective and efficient your financial management becomes.
Accounting logics rest upon a well defined "piloting bridge" — sitting above the conventional, IT centric, “wires and pliers” of our era’s mainstream accounting practices — providing a non-IT centric edifice for your critical path of concentration and priorities.
The insights of accounting logics help significantly increase your financial management measures-of-merit — the human, technical, and organizational capabilities of value, excellence, and superior quality embedded in your financial management system and practices — providing you unprecedented clarity, power, and control in business financial management.
Your Cognitive Ergonomics
Cognitive ergonomics are concerned with your mental and overall workloads, decision-making, skilled performance, human reliability, as these may relate to your human-system design. The aim of cognitive ergonomics is to minimize the primary task demand connected to your operational monitoring and controlling, and overall financial governance. This is called your primary load or task load; the less your mental and overall workloads the better your performance outcomes.
Cognitive ergonomics construe your financial reporting in three dimensions: (1) the usefulness and usability of your reports (i.e., extent that the information contained in your reports can be used by specified users to achieve their specific goals with effectiveness, accuracy and completeness); (2) the efficiency with which your reports are produced (i.e., minimization of resources expended in relation to the accuracy and completeness of your reports); and (3) the satisfaction and acceptance of the users of your reports (i.e., their freedom from discomfort and their positive attitude toward the information supplied in your reports).
Cognitive ergonomics seek to increase the conciseness and relevance of your financial reports by emphasizing their signal salience (i.e., the relevance of content) and stimulus salience (i.e., the ability of the content to stimulate appropriate action) while shortening the time to accomplish tasks, reduce the number of mistakes, and increase the accuracy of users understanding and assessments.
Your Financial Throughput
Related to the signal salience of your reports is the importance of focusing on your financial throughput.
The best way to describe your financial throughput is the continuous flow of overhead amortizing gross margins. It is the core of your proprietary performance holding your enterprise’s overall strategies of cost avoidance, cost reduction, and top-line revenue generation.
Financial throughput is foundational, universal and timeless. It is a collective referent of accounting logics that links each of the tripartite dimensions of your financial management (i.e., your tax and regulatory accounting and reporting, your accounting and reporting to financiers and funders, and your entrepreneurial and cost monitoring accounting and reporting) — giving your overall financial management clarity, vision, focus and synchronization. Regardless of your understanding of financial throughput in principle, you are subject to its consequences. As a measure and indicator, it is revealed, not invented.
Your Attentional Capacity
Attentional capacity is a limited resource that embodies your enterprise's "situated cognition" — the ingenuity that shapes the selection and role of observable facts in your enterprise — addressing the depth, complexity and scope of what people notice, pursue as goals, and mind with their attention.
Your enterprise's regular procedures for reconciling its operational effectiveness with its developmental actions are central to husbanding your attentional capacity. Adding any attentional requirements to either side of your current operations/change activities equation consumes some of your enterprise’s attentional capacity — crucial concerns that accounting logics directly measure and seek to bring into harmony.
Your Real Automation
Real automation relieves you of attentional burdens and demands — transforming step-by-step processes of choice and execution into tacit, continuous, fluid, and automatic processes. The total effect is fast and reliable task performance. Distinguishing between superficial automation and real automation necessitates a thorough understanding of how the cognitive demands of tasks can be tailored ergonomically to free attention from being burdened. The freeing of attentional burdens is the most salient characteristic of real automation. Much of the automation represented by computer systems and software is superficial. Attentional burdens and demands are merely shifted, often actually increased. In contrast, real automation is a non-IT concept that compiles lower order elements into higher order concepts for organizing tasks and collaborative work in ways that relieve you of attentional burdens and demands.
The Management of Your Optionality
Another conceptual theme of accounting logics are sound decisions. Accounting logics conceive the essence of strategic choice as the espousal of at least two, and perhaps more, comparative options at time. It calls this: "optionality by comparison."
For example, value improving proposals can be prioritized by the degree to which any single option, if chosen, constitutes a barrier to future choice. Focusing on barriers to future choice provides you a means to mitigate the impact of your forecast errors.
"Optionality by comparison" provides depth perception to strategic choice.
