Seeing Money Clearly - Using Throughput Accounting to Understand and Manage Knowledge-Work

This book is the first to deal with Throughput Accounting for Knowledge-Work. Throughput Accounting is a lot of things : • an accounting system, • a financial application, • an improvement initiative – POOGI – Process of On-Going Improvements and, • most importantly, the decision-making arm of Dr Eli Goldratt’s Theory of Constraints. Deep understanding of the 5 Focusing Steps is essential in being successful with Throughput Accounting. The Game - Herbie Walk - in Appendix at the end of the book can bring some fun into experimenting with the concepts at your place of work! There is this peculiar attribute to Throughput Accounting being the decision-making arm of the Theory of Constraints. This attribute is causality. Causality operates on the favorite axis of Dr Eli Goldratt: the time dimension. Were you to take a decision today with the model, you would have no doubts that the results are directly triggered by operating on the three financial levers of (T) – Throughput, (I) – Investments or (OE) – Operating Expenses.