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War On Terrorism Essay

3100 words - 13 pages

EXECUTIVE SUMMARY Driven by the need for organizational change, management accounting techniques have developed and proliferated at an unprecedented rate in the last few decades. Some critics, however, have charged that the changes are a "reinvention of the wheel" every few years. To put these issues in perspective, let's look at a framework created to illustrate the distinctive nature of these techniques in an organizational change context. The framework considers such factors as user resistance and organizational culture that can influence the applicability and implementation success of the techniques.

After tracing the history of management accounting beginning in 1850, accounting ...view middle of the document...

Venkataraman. (4) The underlying goal for the framework is designed to reveal the distinctiveness of each technique in the organizational change context. Specifically, is there a systematic approach to applying change techniques and anticipating issues we may encounter in the change process? The application of this framework is illustrated using detailed case studies.


In the new environment created by the power of computing and the displacement of traditional accounting tasks, companies are looking to their financial experts to "act as business partners with operations managers" by providing information to support decision making. (5) Accountants are increasingly involved in strategic management through the development and implementation of new accounting models integrating financial and nonfinancial information. (6) If the substance of the techniques overlaps, accountants need to clarify these overlapping areas to show how they may apply to support different strategic purposes.

Fundamental to organizational strategy is organizational transformation and change. Organizational transformation and change is an ongoing process, and accountants need to see their role in supporting such change. Firms continue to frame their strategy to respond to rapid changes created by globalization and technology. From a strategic purpose, therefore, firms are in a constant state of transformation and seldom reach a state of equilibrium. The nature of internal change and the techniques applied, however, will vary based on such factors as the nature of the change and influential factors internal to the organization.

There are a variety of change responses available to a firm that can be classified as either incrementally focused on efficiency or radically focused with the intent to enhance capability. (7) These influential factors internal to the firm can either constrain or enable the implementation of the techniques. In some instances, the techniques themselves can influence the internal factors. In sum, there are three factors in the framework:

* The nature of change,

* Influential factors, and

* Distinctive elements of change techniques.


Venkataraman classifies IT-induced business transformation strategies for change into five levels based on desired levels of benefits. (8) The levels of change (hereafter VCL) hinge on the business process or, more specifically, the purpose and extent of business process redesign. If the purpose is to rectify current deficiencies and increase efficiency, it involves incremental changes to current business processes at two possible levels, namely localized exploitation and internal integration. If the purpose is to enhance capabilities, it involves fundamental changes to the business processes that are possible at three levels, namely business process reengineering (BPR), business network, and scope redefinition. Table 1 illustrates...

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