Relevance Lost by H. Thomas Johnson and Robert S. Kaplan

What it is about

Kaplan later published The Balanced Scorecard that was a precursor to ESG investing and other big changes in corporate governance. Relevance Lost is the rigorous work that shows that traditional management accounting is no longer a complete or sometimes even accurate measurement of performance. The book walks you through how management accounting emerged, the underlying assumptions it makes and how it can fail when applied to modern enterprises.

Why it changed my thinking

For most non-financial managers budgeting and cost control, instead of being a tool and aid in their work, it is a necessary evil akin to a dentist or proctology exam. Reading this book will help you see management accounting as the business KPI and measurement system that it was intended to be and become a smart partner to your finance and accounting teams.

Where to get it

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