Rating: 
Summary: Measurement or Comedy of Errors
Review: This is far and away the most entertaining managerial accounting text ever written. Smith illuminates the flaws in traditional accounting measures with humorous (unless they happen to you), real disaster stories. Each story includes explanations of the classical accounting analysis (or misguided blind pursuit of efficiency) which caused the disaster and a discussion of more appropriate metrics.That people often let the way employers measure them influence their on the job behavior is a double edged sword. People measured stupidly just may behave stupidly (because the stupid measures will punish them if they behave wisely). Any CFO or managerial accountant who does not thoroughly understand this book may, with all the best intentions, put her/his entire organization at risk. The disaster stories lose some humor in the first person. Read it because its fun. Apply it because it works.
Rating:
Summary: Seamless blend of traditional (GAAP) and TOC
Review: This remarkable book manages to cover a wide array of topics (TOC, metrics, accounting and GAAP compliance and implementation and strategy issues)in approximately 200 pages and still impart a deep message. The message is not subtle - don't be a lemming just because 'you've always done it this way'. Actually, the message is much deeper and also encompasses how to measure the right things. What I like most is the fact that the author can write clearly and hold your attention while at the same time providing you with enough information to cause you to rethink the way you're currently doing business - and giving you a clear path to doing it better. The book starts out with eye-opening stories from the author's past experience of companies what were measuring the wrong things based on myopia. She then introduces TOC, discusses how traditional accounting metrics and indicators can be aligned to TOC, and goes deeper into TOC with a direct emphasis on how it relates to accounting methods. From there the book goes into TOC metrics and how to align them to GAAP financial statements. This short book wraps up with excellent implementation advice that is based on a strategic approach. Overall, this book is easy to read, but is rich with information beyond what one would expect is such a short book. The author backs up her proposed approach with real life experience and compelling facts that are logically presented and based on hard numbers, and is an obvious expert in both accounting and TOC.
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