	Melvin Consulting – "Lean" Services to Accounting Practices All organisations, including accounting practices are under significant cost pressures. "More for less" is a necessity for all services these days, whether of a professional nature or otherwise. Individual initiatives such as computerisation and the "paperless office" are good steps along the path to cost and organisational improvement, but if undertaken in isolation can lead to an under realisation of benefits and thus cause organisational disappointment. Adopting a Lean approach provides a comprehensive and best practices approach to organisational cost effectiveness, as well as ensuring that clients' perception of value is properly handled, all of which is an essential part of managing a professional practice. The Lean approach includes other key managerial considerations such as quality, risk and performance and provides for balance between costs, effort, results and value to both the client and the practice. By using process concepts, the Lean approach adds optimum value that is compelling, that is significantly beyond individual professional capability or initiatives, and is primarily based on hard facts / numbers / metrics. Key considerations for the Lean approach (for accounting practices) include: Development of value maps for the respective services provided and identification of their measurable attributes, to enable the connection between measurement and management. Profile of the value maps. This must include a good understanding of clients, level / nature of work (load) involved, cost drivers, quality parameters, risks, decisions, workflow triggers, deliverables, performance measurement etc. Use of software. Any work process / value map consists of the combination / integration of software and manual procedures. Understanding the scope of software is a key part of the work. Description of activity within the current maps – to a level of detail that facilitates improvements in the process. (We help you determine the level of detail involved). This should include not only workflow, but also information flow, paper flow and physical movement. Analysis and application of Lean principles so that opportunities for improvements can be identified and justified. These considerations have to be graded in the light of likely benefits. Benefits come in many forms – reduced cost (generally the immediate goal), improved quality / client value, improved capacity, and improved robustness / resilience. However, benefits are not easy to achieve and can be uncertain (like the future in a more general way) – sometimes targets have to be set to provide the necessary vision for the organisation's future and change management insights may also have to be used to ensure successful implementation. Generally speaking, benefits have to be worked at in order to be achieved, but investment costs are normally incurred up front and are very certain! Integration of the new value maps into practice management considerations e.g. lead, billing, workload, client, quality, specialisation, risk, cost, image, performance management etc. We are confident that we can add real value to clients in such an initiative by helping to cut through the fog and uncertainty of how to move forward, by ensuring a cost effective focus to the approach, and bringing essential skills and experience to the work involved. Do not hesitate to contact me, John Melvin, at 087 240 5197 or at john@melvinconsulting.ie to discuss how we can assist your practice.

Melvin Consulting – "Lean" Services to Accounting Practices

All organisations, including accounting practices are under significant cost pressures. "More for less" is a necessity for all services these days, whether of a professional nature or otherwise. Individual initiatives such as computerisation and the "paperless office" are good steps along the path to cost and organisational improvement, but if undertaken in isolation can lead to an under realisation of benefits and thus cause organisational disappointment.

Adopting a Lean approach provides a comprehensive and best practices approach to organisational cost effectiveness, as well as ensuring that clients' perception of value is properly handled, all of which is an essential part of managing a professional practice.

The Lean approach includes other key managerial considerations such as quality, risk and performance and provides for balance between costs, effort, results and value to both the client and the practice. By using process concepts, the Lean approach adds optimum value that is compelling, that is significantly beyond individual professional capability or initiatives, and is primarily based on hard facts / numbers / metrics.

Key considerations for the Lean approach (for accounting practices) include:

Development of value maps for the respective services provided and identification of their measurable attributes, to enable the connection between measurement and management.
Profile of the value maps. This must include a good understanding of clients, level / nature of work (load) involved, cost drivers, quality parameters, risks, decisions, workflow triggers, deliverables, performance measurement etc.
Use of software. Any work process / value map consists of the combination / integration of software and manual procedures. Understanding the scope of software is a key part of the work.
Description of activity within the current maps – to a level of detail that facilitates improvements in the process. (We help you determine the level of detail involved). This should include not only workflow, but also information flow, paper flow and physical movement.
Analysis and application of Lean principles so that opportunities for improvements can be identified and justified. These considerations have to be graded in the light of likely benefits.
Benefits come in many forms – reduced cost (generally the immediate goal), improved quality / client value, improved capacity, and improved robustness / resilience. However, benefits are not easy to achieve and can be uncertain (like the future in a more general way) – sometimes targets have to be set to provide the necessary vision for the organisation's future and change management insights may also have to be used to ensure successful implementation. Generally speaking, benefits have to be worked at in order to be achieved, but investment costs are normally incurred up front and are very certain!
Integration of the new value maps into practice management considerations e.g. lead, billing, workload, client, quality, specialisation, risk, cost, image, performance management etc.

We are confident that we can add real value to clients in such an initiative by helping to cut through the fog and uncertainty of how to move forward, by ensuring a cost effective focus to the approach, and bringing essential skills and experience to the work involved. Do not hesitate to contact me, John Melvin, at 087 240 5197 or at john@melvinconsulting.ie to discuss how we can assist your practice.