Financial Skills: Adding Value with Key Management Accounting Techniques

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Course Overview

Thecentral task of the management accountant has substantially changed in many organisations, moving away from providing routine information toward contributing to the strategic development of the business. The past decade has also seen significant developments in the techniques that are available and the ways in which they can be deployed. This course is designed to assist management accountants to develop their role as business and financial analysts by presenting the key developments that can be used to add value to the management process.

It examines a selection of developments in management accounting and performance management to give an overview of the battery of techniques that are now available to support the management process and implement strategic intent. Particular attention will be paid to methods of monitoring the creation of value as well as the incurrence of cost, and the role that these techniques can play in business development.

Course Outline

THE CONTEXT OF MODERN BUSINESS

• Focus on the customer and client
• Value creation strategies
• Drivers of change
• An overview ofkey developments in management accounting

VALUE-BASED MANAGEMENT

• Value comes from customers
• Strategic management accounting
• The value to cost ratio
• Value-based management
• Demand management techniques
• Economic value added
• Monitoring value creation

COST MANAGEMENT

• From ABC to overhead cost management
• Product and customer profitability
• Implications for cost management
• Life-cycle and target costing

INTEGRATING COST AND VALUE INFORMATION (CASE EXERCISE)

PERFORMANCE MANAGEMENT

• Implementing strategic intent
• Frameworks for analysis
• The 'levers of control'
• Balanced scorecard approaches
• Developing robust performance measures
• Some 'health warnings'
• Dangers with incentives
• Avoiding dysfunctional behaviour
• Risk management

PERFORMANCE MEASURES (CASE EXERCISE)

IMPROVINGBUDGETARY CONTROL

• Issues with traditional methods
• The 'Beyond Budgeting' movement -principles and practice
• Integrating budgetary control with performance management
• Creating an adaptive organisation

CONCLUSIONS

• The role of the accountant in adding value
• Techniques and processes

Financial Skills: Adding Value with Key Management Accounting Techniques / CM9462