Remember when the idea of lean manufacturing hit the business press in the 1990s. It seemed to spread like wildfire. Today it’s firmly rooted in the zeitgeist of the business world.

Part of its success has to do with the power of the idea itself. According to Wikipedia, lean manufacturing is “a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.”

As far as business logic goes, that’s close to unassailable. Try sitting in a meeting and arguing to the contrary: “I think we should waste a lot of time and money on products our customers don’t want. Can I have my promotion now?”

One measure of an idea’s power is the extent to which it can be used beyond its original context. Here lean manufacturing pays off in spades. Lean procurement, lean construction, lean logistics, lean software development – even lean government. For the business world in general, the important part is not so much “manufacturing” as it is “lean.”

Lean principles can also be applied to corporate roles – and for many companies, the role of the chief financial officer (CFO) is a perfect candidate. Some companies need to trim down: perhaps they have a CFO but they’re not getting the value they need. Others need to beef up: perhaps they need a CFO but don’t have the resources to add one as a full time position. Either way, the lean CFO can help.

According to the Wikipedia article cited above, “lean is centered around preserving value with less work.” This describes the essence of the lean CFO idea – though I would replace “preserving value” with “adding value.” The lean CFO adds value both at the accounting level and at the strategic level – helping companies to get their financial house in order while also helping to define priorities and take financial action to realize business objectives. This runs counter to the idea of the CFO as an executive-level bean counter whose primary responsibility is to rein in spending. Fiduciary duties and financial risk mitigation remain a vitally important part of the lean CFO’s job description – but these responsibilities are approached with a mindset that asks: How can I help increase performance, enable innovation, support growth and improve overall business health?

Oh, and did we mention that the lean CFO works on a part-time basis – perhaps just a couple of times a week? That’s the lean part. For small and mid-size companies, this is a proven model – one that I‘ve been using for years. The CFO Connection has many clients with relationships that extend more than a decade. The simple fact is, many companies need the financial acumen and strategic vision of an experienced financial officer. What they don’t need is someone to attend endless meetings, engage in office politics, cruise the cubicles, and figure out how to use the office copier. And they don’t need the salary overhead. What they do need is more value with less work – and that’s what the lean CFO delivers.

Stay tuned for future CFO Connection blog entries. We will be exploring other aspects of the lean CFO as well as a wide range of issues relevant to the world of business and finance.

The CFO Connection