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| David Cuykendall www.accountinglogics.net |
The strategic goals of an EPG are to improve the collective logic, knowledge, economy, hard and soft synergies, hidden infrastructure, and management of non-routine measures in your enterprise. The intent is greater cohesion, clarity, embedding of skills and concepts, quality of value improving proposals, management of value, and value metrics of your enterprise.
Heuristic versus Optimizing Methods in Decision Making
We have to rely on heuristics not simply because of computational expense but also because of the task environment. For instance, chess has an optimal solution, but no computer or mind, can find this optimal sequence of moves, because the sequence is computationally intractable to discover and verify.
How Accounting Logics Elevates Financial Reporting
The mistake often made with using the features of standard packaged financial management reporting software is to use a single model of inferences based on historical financial information to satisfy the information needs of the regulatory and financial users of fiduciary information (i.e., statutory accounting and reporting users) AND the users of operational and predictive financial information. It can’t be done within that single model.
The Geometry of Critical Information Requirements
Critical information requirements (CIRs) are those information requirements identified as being significant to timely decision making. CIRs help confirm the vision of the operations space, assess desired effects, and determine how decisions are achieved to accomplish a mission or to identify significant deviations from that vision.
The Hidden Cardinal Role of Financial Throughput
Regardless of our understanding of financial throughput in principle, we are subject to its consequences. Its meaning is self-evident and obvious once it is identified and explained; as a measure and indicator, it is revealed, not invented.
The Management of Your Optionality
The espousal of two or more comparative options at time is the essence of strategic choice. It is useful to call this: "optionality-by-comparison."
The Three Separate Financial Information Processes
One kind of cost information has a historical or results perspective. Its purpose is to record what has happened in the past, and it is used by people outside of the organization — bankers, creditors, fiduciaries, regulators, and taxing authorities. A second kind of cost information has a right now time perspective. Internal workers making day-to-day, real time decisions about the organization’s business processes need this kind of information. A third kind of information has a forward-looking predictive perspective.
Your "Triple Bottom Lines"
Long ago, before IT deskilled financial management, it was understood that a thriving enterprise needed three sets of books: one for the tax man, one for the financiers, and the real books (for your eyes only). The real books were your proprietary books, used to entrepreneurially guide and monitor your enterprise. There were three bottom lines or profitability measures, one for each set of books.
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Role Chartering
A tool known as a role charter can help ensure both effective decision making and collaboration. Role charters are simple instruments that enable tough conversations to take place so that key tensions among managers and leaders can be resolved.
Role Structure
An efficient role structure provides a common understanding of what must done and how it will done to unify employee actions in attaining their keys to success, results, and assigned purposes.
The intent of those responsible for enterprise performance provides the purpose, the keys to success, and the desired end state for the enterprise. It points the way for the entire enterprise.
To produce a product or deliver a service, you absolutely need people to be working together. It is not enough for machines and computers to work in coordination. People have to work in coordination with each other too.
