A word from the president.
Author | Glass, George |
There was an intriguing article in Business Strategy Review recently suggesting that problem-solving in management is not as effective as it is in law, medicine or engineering (http://tiny.cc/bvmtm). Those professions have a scientific process to define a problem, identify options, select the best solution and implement it - and then report the results. Those using this approach also receive feedback in a structured way and, if necessary, revise any hypotheses they make during the process.
The writer commented that, by contrast, his experience of executive decision-making was that it was often motivated by dogma ("my gut feeling tells me that ...") or determined by competition among people within the organisation. What actually got prioritised sometimes verged on the trivial. Compared with the relatively predictable environment of engineering (my own original profession), business decision-making is made messier by people - by the need to think about their relationships, the need to get their support for a decision and so on.
Our core role in supporting management decision-making means that we need to consider this writer's critique and how we can contribute to better problem definition, for example. Management accountants are highly analytical individuals who are experienced in talking to ~ different professional or managerial groups in our organisations, and interpreting their different perspectives as we meet their information needs. We are familiar with a wide range of management and management accounting tools and can advise on their suitability to deliver what the business requires.
A recent CIMA research report entitled "Don't s blame the tools" reinforces the importance of separating the problem from the solution. It advises that organisations should manage the end game more effectively. Instead of letting a management accountancy tool die a lingering death, we should explain when its time has passed. Purposefully managing the turnover of management accountancy tools will give users greater confidence.
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Implementing initiatives, particularly now...
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