Strategic Management Accounting and Balanced Score Card
CHAPTER 17: ACCOUNTING FOR STRATEGIC MANAGEMENT
CHAPTER OUTLINE
Learning outcomes Introduction Organisational strategy o Definition o Cumulative strategy (strategising)
Strategic management accounting (SMA) o Definition o Components of SMA o Does SMA still exist; or, what is it becoming?
The balanced scorecard o Its origins and its purpose o Elements and characteristics of a balanced scorecard o Designing a balanced scorecard o Features of a balanced scorecard o Why has the balanced scorecard stood the test of time? o Critique of the balanced scorecard
Roles of management accountants in accounting for strategic management Chapter summary Recommended reading References
© John Burns, University of Exeter February 2012
1
Group discussion topics Review questions Exercises Chapter case study
LEARNING OUTCOMES
On completion of this chapter, students will be able to:
Appreciate the organisational necessity, and difficulty, in being strategic – i.e., (re-)planning and continually monitoring for alignment between organisational aims and actions.
Describe some of the key components (tools and techniques) comprising SMA, and understand why they are regarded as such.
Describe the balanced scorecard, including its four main perspectives and main assumptions; and understand its aims for holistic and integrated performance measurement.
Be critical and alert to some of the potential problems of a balanced scorecard, and articulate how improvements might be made to overcome such problems, hence describing some of the details of tomorrow’s strategic performance measurement tool(s).
INTRODUCTION
Much of the content of this textbook to this point has described various tools and techniques of management accounting which assist an organisation to plan (often in the short-term) and monitor and control its activities in a fairly static manner. But, nowadays organisations need to be
CHAPTER OUTLINE
Learning outcomes Introduction Organisational strategy o Definition o Cumulative strategy (strategising)
Strategic management accounting (SMA) o Definition o Components of SMA o Does SMA still exist; or, what is it becoming?
The balanced scorecard o Its origins and its purpose o Elements and characteristics of a balanced scorecard o Designing a balanced scorecard o Features of a balanced scorecard o Why has the balanced scorecard stood the test of time? o Critique of the balanced scorecard
Roles of management accountants in accounting for strategic management Chapter summary Recommended reading References
© John Burns, University of Exeter February 2012
1
Group discussion topics Review questions Exercises Chapter case study
LEARNING OUTCOMES
On completion of this chapter, students will be able to:
Appreciate the organisational necessity, and difficulty, in being strategic – i.e., (re-)planning and continually monitoring for alignment between organisational aims and actions.
Describe some of the key components (tools and techniques) comprising SMA, and understand why they are regarded as such.
Describe the balanced scorecard, including its four main perspectives and main assumptions; and understand its aims for holistic and integrated performance measurement.
Be critical and alert to some of the potential problems of a balanced scorecard, and articulate how improvements might be made to overcome such problems, hence describing some of the details of tomorrow’s strategic performance measurement tool(s).
INTRODUCTION
Much of the content of this textbook to this point has described various tools and techniques of management accounting which assist an organisation to plan (often in the short-term) and monitor and control its activities in a fairly static manner. But, nowadays organisations need to be