The Concept of Delta Management: Important Aspects of Toyota Profit Management and Its Significance for Healthcare Organizations

This chapter clarifies the attributes of profit management in its traditional form by tracing the evolution of the profit management concepts that have been central to managerial accounting theory up until the present. Next, we clarify the characteristics, and the circumstances that led to the implementation, of Toyota profit management, which differs from traditional profit management. Further, the concept of “delta management”, an attribute of Toyota profit management that strengthens risk tolerance and cost competitiveness, will be understood by comparing traditional and Toyota profit management. Finally, the significance of delta management to managerial accounting and its significance for medical organizations, which often face severe financial constraints, will be considered.