On Creative Accounting: Two Creativity Myths

Harvard Business Review

"Creative accounting" is really bad. For me, it evokes a wonderful old New Yorker cartoon by Robert Weber , where a small, meek accountant stands before the desk of an overfed chief executive exhorting the accountant to rescue the company: "It's up to you now, Miller. The only thing that can save us is an accounting breakthrough." Wall Street's " financial innovations " of recent years seem to have given creativity a bad name.


On Creative Accounting: Two Creativity Myths

Harvard Business Review


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Eliminate Slogans, Exhortations and Targets

Deming Institute

The best policy may be to avoid incentives altogether and focus instead on creating systems in which intrinsic motivation, cooperation, ethical behavior, trust, creativity, and joy in work can flourish. Distorting the numbers, a form of creative accounting aimed at looking good rather than doing well, is rampant in American business. Point 10 on W.

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

FCLT and McKinsey rely on readily available and machine-readable accounting data to measure myopia. By spinning their accounting performance, they may postpone having to make hard strategic decisions. Creative accounting measures. Similarly, a good indicator for myopia is a company’s use of performance measures that are not compliant with generally accepted accounting principles , as it may effectively spin the financial results.

EPS 30

Who Gets a Seat at the Table?

Harvard Business Review

Yeaney cites three key benefits: First, the process generated "more creativity, accountability, and commitment." "That was a small lesson I learned on the journey. What is interesting and important happens mostly in secret, in places where there is no power. Nothing much of lasting value ever happens at the head table, held together by a familiar rhetoric.