Category Archives: Accounting Failures

Note to self: do ERP vendors benefit from the sunk cost fallacy and asset specificity?

I’ve never really been very interested in ERPs – so I likely don’t know what I’m talking about… But over the years there have been many times I’ve heard organisations saying they need to “leverage their investment” in their ERP.  This … Continue reading

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Agile Manager on the risk of a Lean IT Financial Crisis

Interesting: “Accounting rules dictate that inception has to be funded out of SG&A. What this means is that before we can spend out of a capital budget, we must spend some SG&A money first. It’s also important to bear in … Continue reading

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Project Managers Should Not Fear the Baseline | CIO – Blogs and Discussion

There is some wisdom in Jim Vaughan’s article and the related comments: The poor performance of the project usually has less to do with the project manager or the project team and more to do with the systemic failures of … Continue reading

Posted in Accounting Failures, Collaboration Architectures, General MWT, IT Management, The New MWT Hierarchy | Leave a comment

The Professional Mess

There is a very interesting interview with Dr. Thomas Dorman on the Lew Rockwell podcast entitled ‘The Medical Mess’. Dr. Dorman talks about how placing an intermediary between a professional (the doctor in this case) and their customer (patient in … Continue reading

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Confessions of an aeroholic

“Airlines are notoriously cyclical because revenue is very sensitive to changes in demand. Profits are greatest when strong demand results in full planes (‘‘load’’) and high prices (‘‘yield’’), but they can disappear quickly when demand falls because costs are relatively … Continue reading

Posted in Accounting Failures, Airline Industry, Australia, Enterprise Architecture, IT Outsourcing, Personal, Thought of the day | Leave a comment

“We glorified finance, we privileged finance, we even subsidised finance”

ABC radio’s PM programme has a good little interview with Jim Standford regarding how people incorrectly think of economics as part of the finance industry rather than the finance industry being just a part of the economy: JIM STANFORD: … I … Continue reading

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Bad maths, accounting, and risk management

A brief, but interesting introductory article on the types of accounting rules that are legal but which promote bad investment in the long term appears here (pdf).   The summary, in the form of a joke, follows:    Three accountants interview for a job.  … Continue reading

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