Management Accounting Change Flashcards
Understand Traditional Role of MA / Gain appreciation of RA / Relevance Lost Era / Drivers of change in the profession / Role of Hybrid MA
Hopper 1980 view of traditional Accountant
Independant
Objective Assessors of financial performance
(no mention of value creation)
Key Features of traditional role
Policing function Holding the line accountable Controller function Prescriptive and Normative Controlling financial measures Narrow scope Internal Reactive Existing activities Relevance Lost Era
Relevance Lost Era
Johnson and Kaplan (1987)
Rise and Fall of MA
drivers causing the relevance of MA to decrease
Primary Drivers of change
Globalisation
Technology
Corporate Trends
Globalisation (drivers of change)
International competition
Increased complexity
Must realise their core competencies
Kodak - Facing competition from Japan
Technology (drivers of change)
Information portable and transparent
Shift to value creation as data processing no longer relevant
Example: Dashboard on placement
Corporate Trends (drivers of change)
70s - wave of mergers
90s - delayering/privatisation
now? - alliances and networks. Hybrids
Hybrid Accountants
Business partners Consultants to the business Face to face communication Example: Best Buy and Pernod Analysts EQ vs IQ MA as educators to the business
Questions to ask
How to accountants innovate when they are highly regulated?
accountants will always be concerned with profits - how can they be strategical
Always need to be able to interpret the data produced by tefchnology
Questions to ask
How to accountants innovate when they are highly regulated?
accountants will always be concerned with profits - how can they be strategical
Always need to be able to interpret the data produced by technology
Are accountants trained in this way of thinking through exams such as ACCA etc?
How do you bridge the gap between value currently delivered and value the market requires?
