Works Cited - Springer978-1-137-51120-1/1.pdf · Works Cited Accounting for ... Adam. 2011....

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Index

"Accounting Turnaround Management" (course) (UCLA), xxvi

ACH transfers, 186 acquisition models, 264-6 acquisitions, 11-12, 124, 126, 129,

177,207,209,238-41,264-6, 269,354,358

activity-based costing analysis (ABC), 142, 144, 157-64, 170, 172, 174, 195, 199,204

Adaytum, 140,305 AICPA,8 Allen, David, 326 alliances with other functions, 90-2

outcomes table, 92 performance levels table, 91

analytical structure, explanation of, 9-19 anosognosic management, 13 Apple Inc., 36, 53 assessment

of financial performance, see financial performance, assessment of

of operating expenses, 229-30 of relationships, see external

relationships resources, see assessment resources of revenue operations, 221-4 of senior management, see senior

management, assessment of assessment resources, 98-9

and psychological assessment, 98 and recruitment, 98-9

assets as barrier to exit, 41 current, 200-3, 252, 309, 355 intangible, 400 and liabilities and equity, see assets,

liabilities, and equity management

managing, 183-209; see also assets, liabilities, and equity management

noncurrent,178,207-9,252,309,355 property, plant, and equipment, 203-7 turnover, 113

assets, liabilities, and equity management, 183-217

and cash, 185-9 and current assets, 200-2 and current liabilities, 209-12 and equity, 213-15 and inventory, 194-200 and noncurrent assets, 207-9 and noncurrent liabilities, 212-13 and property, plant, and equipment,

203-7 and questions regarding, 215-17 and receivables, 189-94 and unwanted public disclosure, 233

audit, financial, 6-8, 85,108-10,131-2, 135-6, 185,212,230-2,256-7,277, 281,368

audit, postcompletion, 91, 180, 203-5 auto industry, 43, 110

Bain Capital, 106 balance sheet, 123, 155, 168, 175,

183-215,226,233,252-3,282-3 bank loan covenants, 18, 19,99-101, 106,

211,248 bank statement, 186, 282 bankruptcy, 106, 12~ 192,252 barriers to entry, 37-40

outcomes table, 40 performance levels, 39

barriers to exit, 37-8, 40-1, 119 and cash flow volatility, 119 and performance levels, 41

410 INDEX

BHAG, see big, hairy, audacious goal big, hairy, audacious goal (BHAG), 252 Bismarck, Otto von, 107 board of directors, 5, 15,22, 70, 80-4,

88,110-11,128, 144, 17~ 182,208, 233-4,246-~272-3,288,318,328,

341,349,362-5,372,383,392-3 and majority interest outcomes

table,83 and majority interest performance

levels, 82 and minority interest outcomes

table,84 and minority interest performance

levels, 83 performance of, 80-4

Bock, Laszlo, 86 book value, 41, 125-7,207-8 bottled water industry, 43 breakeven, sales volatility, and profit

margin, 114-17 outcomes table, 116 performance levels table, 115

breakeven point, 114-17 budgets, 66, 69, 141, 146, 187,243-4,

246-54,256-8,268,270,373 Buffett, Warren, 32, 61, 113,265-6,363 business process analysis and

optimization, 157-74 and ABC, 157-64 and chart of accounts, 164-9 and closing the books, 169-73 and outcomes table, 164 and performance levels table, 163 and questions regarding, 173-4

BusinessWorks,291

calendar year or fiscal year, 110 capacity, 249-50 career mobility, increased, 9 cash flow

analysis, 147, 152 budget, 187 forecast, 253 free, 124-6, 175 and financial flexibility, 179 from financing activities, 178-9

from investing activities, 177-8 management, see cash flow

management from operating activities, 175-7, 282 outcomes table, 181 performance levels table, 180 statement, 175,253,261,282 volatility, 119-21

cash flow management, 175-82, 185-9 controls outcomes table, 188 controls performance level table, 187 and financial flexibility, 179-81 and financing, 178-9 and investing, 177-8 and operating, 175-7 and questions regarding, 181-2

cash flow statement, 175,253,261,282 cash flow volatility, 119-21

and outcomes table, 121 performance levels table, 120

cash position outcomes table, 189 performance levels table, 188

Central Product Classification System, 302

Changing Minds (2004), 377-9 chart of accounts, 108, 109, 137, 138,

141,152,164-9,184,186,210,214, 221-2,224,226,230,232,301, 304-10,373


chief financial officer (CFO), needs of, xxi-xxiii

China, 51-5, 286, 327, 401 closing the books, 157, 165, 169-73


cloud computing, 285-6 Cognos, see TM1 software collateralized debt obligations

(CDOs), 257 Collins, James, 252, 323 Committee of Sponsoring Organizations

(COSO), 21-4, 27 competitive strategy, 31-59

and barriers to entry, 37-40

and barriers to exit, 37-8, 40-1 and China, 51-4 and competitive forces, 36-54 and complementary products, 37-8,

49-51 and firm position, 31-4 and globalization, 51-4 and intensity of competition, 37-8,

47-50 and power of customers, 37-8, 43-5 and power of suppliers, 37-8,40-3 and product differentiation, 34-5 and questions regarding, 57-8 and risk, see risk management and strategy and performance, 35-6 and structure of competition, 36-51 and substitute products, press ure

from, 37-8, 45-7 Competitive Strategy (1980) (Porter), 17,

29,31-8,40,266,392 complementary products, and

competition, 37-8, 49-51 outcomes table, 51 performance levels table, 49

concealed information, 233 condorsement, 277 contingencies, 114, 180,212,253-4 Cooper, Robin, 29, 142 CO SO, see Committee of Sponsoring

Organizations cost estimation, 142, 144,249 cost leadership strategy, 28, 32-6,

46,358 and performance levels, 33

cost of goods sold (COGS), 113, 224-7,249


cost reduction, 34, 256, 265, 294 cost systems, 142-6


Costco Wholesale Corporation, 115 counterfactual thinking, 352, 397-8 Countrywide Bank, 207 Covey, Stephen, 86-7, 268, 321-3,

326,371

INDEX 411

creative thinking, xxii, 292, 315, 327-8,398

credit cards, 133, 193, 229 credit management associations, 192 Crystal Reports, 139-40, 306 current assets, 200-3, 252, 309, 355


current liabilities, 206, 209-12, 309 outcomes table, 211 performance levels table, 210

customer power, see competitive strategy customer relationship management

(CRM) system, 304, 311

daily meeting, 324-5 days material on hand (DMO), 123 de Bono, Edward, 321, 327, 329 debt/equity, 117-19


direct deposit, 185 dishonesty, 94, 130, 183-4,242-5,

254-5,265,28~334,351-2,358,

374,384-5 disruptive technology, 50, 393 dividends, 125, 128-30


DMO, see days material on hand Dupont,185 dysfunctional finance, detecting, xxiii

economic instability, 257-60 Edison, Thomas, xxii employee surveys, 98 Enron,6,383 Enterprise Resource Planning (ERP)

systems, 35, 137, 139-40, 144, 152-3,155,165,285-317

and chart of accounts, 305-10 and implementation, 295-9 and implementation outcomes

table,299 and implementation performance

levels table, 298 and legacy systems, 292

412 INDEX

Enterprise Resource-Continued and numbering systems, 302-5, 310-12 and operations outcomes table, 297 and operations performance levels

table,296 and postimplementation review,

295-6 and project initiation, 288 and questions, 317-19 and supplychain, 312-17 and taxonomy, 300-12, 314-17

Enterprise Risk Management (ERM), 22 enterprise-wide implementation levels

(figure), 290 equity, managing, 213-15


equity investors, see private equity ERM, see Enterprise Risk Management ERP, see Enterprise Resource Planning

systems ethics, 84-9, 253-5, 375, 383-4

and contingencies, 253 FEI code of, 85 and outcomes table, 89 and performance level, 88 and senior management, 84-8, 375 upper dass, 254-5

expenses, 114, 116, 132-3,226-30, 251-2,309

amortization oflarge, 226 and me als and entertainment, 132-3 operating, 114, 116,227-30,

251-2,309 outcomes table, 230 performance levels table, 228

exponential relationship between performance factors (figure), 26

eXtensible business reporting language (XBRL), 139, 277, 279-80, 287, 300

external relationships, 99-110 and calendar year or fiscal year,

109-10 and lenders, 99-101 questions regarding, 110-12 and tax authorities, 107-9 and venture capital and private equity,

102-7

FAF, see Financial Accounting Foundation

FASB, see Financial Accounting Standards Board

FEI, see Financial Executives International

FIFO, see first in first out Financial Accounting Foundation

(FAF),280-1 Financial Accounting Standards Board

(FASB), 7-8, 198,207,220,275-81, 283, 327, 350

financial analysis of operating results, 142-54, 155-6

and cash flow analysis and ROI, 147-54

and cost systems, 142-5 and outcomes table, 154 and performance levels table, 152 and standard gross profits, 145-7

financial control design and review, 130-42, 154-5

and financial policies and procedures, 131-4

and management reports and information, 137-42

financial controls, 6-8, 75, 130-42, 155 and outcomes table, 136 and performance levels table, 135

Financial Executives International (FE!), 85, 185

Financial Executives Research Foundation, 323

financial forecasting, see forecasting financialleadership perspective, 4-9 financial management, xxi-xxvi,

1-20,322-4 and communication, xxii and financialleadership perspective,

4-9 innovative approaches to, xxii overview of, 1-4 and performance assessment

tools, xxi and priorities, xxii purpose of, 322-4 and questions regarding, 19-20 and structure of the analysis, 9-19

and trends transforming the profession, 9

financial models, 67, 99, 206, 211, 260-70 and acquisition models, 264-6 and analysis of firm's strategie

planning,266-70 and assessment of financial

forecasting, 266-8 and best practiees, 260-4 and covenant compliance tests, 99, 211 and firm and consolidation

models, 264 financial offieer relationship with

president, 90-8 outcomes table, 96 performance levels table, 93

financial performance, assessment of, 113-56

and analysis of operating results, 142-56

and control design and review, 130-42, 154-5

and financial ratio analysis, 113-30,154

and questions, 154-6 financial polieies and procedures, 131-4


financial ratio analysis, 113-30, 154 and breakeven point, sales volatility,

and profit margin, 114-15 and cash flow volatility, 119-21 and debt/equity, 117-19 and direction of dividends/net

income, generie strategy, earnings, 128-30

and free cash flow, return on equity, 124-5

and priee/book value, priee/earnings, 125-7

and working capital management, 121-4

financial reporting, 139-40, 145, 167, 197-8,275-83,301,305-10,373

and ERP systems, 305-10, 373 international standards, 197-8,

275-83 public,139

and SIC codes, 301 systems, 167 and tax reporting, 145

INDEX 413

see also eXtensible business reporting language; International Financial Reporting Standards

financial statement, 3, 6-7, 24, 65, 116, 131, 135, 152, 170-2, 175, 184-6, 206,209,214,229,246-~253,

255-6,261-2,279,282-3,305,352, 383-4

first in first out (FIFO), 145 first 90 days, 325-6 First Things First (1994) (Covey), 323, 326 fiscal year, 110 forces that drive competition and level of

risk (table), 37 forecasting

assessment of, 266-8 and cash flow forecast, 253 and cost reductions, 256 and outcomes table, 268 and performance levels table, 267 and sales forecast, 247-8

Foreign Corrupt Practiees Act, 134, 136 four rating (4) (failing), 18 Franklin Covey Co., 36 free cash flow, return on equity,


Frorn Good to Great (2001) (Collins), 323 FRx Software Corp., 140, 305

GAAP, see Generally Accepted Accounting Principles

Gardner, Howard, 86, 321, 359, 377 GDP, see Gross Domestie Product generalIedger, 109, 164, 167, 169-70,226,

305-7 General Motors, 52, 128 Generally Accepted Accounting

Principles (GAAP), 6-7, 145, 197-8, 203,206-~209,214,233,252,

276-83,373 and Big GAAP, 281 convergence with IFRS, 197-8,203,

206-~209,277-80

414 INDEX

Generally Accepted-Continued and inventory, 145 for IPO, 278 and Little GAAP, 281 and noncurrent assets, 252 and public/private companies, 6-7 statement, 282 total pages in, 276

Getting Work Done (2001) (Allen), 326 global financial crisis (2007-present),

51-2, 114,257-8 global supply chain, see supply chain globalization, xxiii, 9, 29-31, 51-4

of competition, 51-4 Goffman, Irving, 255 Google Inc., 86 Grant Thornton LLP, 279 Great Plains Dynamics, 291 Gross Domestic Product (GDP), 52-3 gross profits, 113, 124, l39, 145-7,227

holding company, 5, 260 honest broker, 385 honesty,94, l30, 183-4,242,245,254-5,

265,28~333,351-2,358,374,384-5

Hyperion, 140, 305 hypocrisy, and power, 86

IASB, see International Accounting Standards Board

IASC, see International Accounting Standards Committee

IFRS, see International Financial Reporting Standards

improvement plan (developing, selling, and implementing), 351-90

improving profits, see profits, improving income statement, 167-8, 175, 185,219,

226,230,261,264,282 India, 53, 286, 327 information taxonomy, 292, 303,


information technology (IT), 9, 286-7, 314,317

changes in, 9 and outsourcing, 286

and reporting structure, 314, 317 and security, 287 see also Enterprise Resource Planning

systems initial public offering (IPO), 2, 36,

278,360 intangible assets, 400 intensity of competition, 37-8, 47-50

outcomes table, 49 performance levels table, 48 see also competitive strategy

intensive recruitment screening, 98-9 International Accounting Standards

Board (IASB), 8, 198,220,275,280-3 International Accounting Standards

Committee (lASt), 278 International Financial Reporting

Standards (IFRS), 7-9, 85, 145, 197-8,203,206-~209,214,233,

252,275-84,286,35~373,383,399

and cash flow, 282 and principles, 281-2 in private firms, 282-3 and questions, 283 transition to, 9

international firm performance, 367-8 International Standards Organization

(ISO) certification, 158, 162-3,292 interviews/interviewers, xxv inventory, 113, 121-3, 139, 145, 176,

194-200,309,370,378 and cash flow cyde, 176 and changes in business

conditions, 197 and chart of accounts, 309 and financial reporting standards,

197-8 and inventory quality ratio (IQR),

195-~200,370,378

management, see inventory management

material, 123 obsolescence, l39 turnove~ 113, 121-3 valuation, 145, 197-8

inventory management, 194-200 outcomes table, 200 performance levels, 199

inventory quality ratio (IQR), 195-7, 200,370,378

figure,196 investing activities, and cash

flow,177-8 investor relationships, 102-7


invoicing, 160, 192,209,221-3 IPO, see initial public offering ISO, see International Standards

Organization IT, see Information Technology

joint ventures, 239-40

Kaplan, Robert, 142

last in first out (UFO), 145, 197-8 lead time, 161 leadership, 4-9,86-7,240,269,335-8,392

and financial staff, 335 and the next generation, 335-8 outcomes table, 337 performance levels table, 336 and personality, 87, 240, 269

lean accounting, 135, 152, 162 legacy systems, 292 lender relationships, 99-101

outcomes tables, 101 performance levels, 100

level of risk dependence on another factor (figure), 25

liabilities current, 206, 209-12, 309 insurance,88, 17~233,371 noncurrent, 206, 212-13, 309 tax, 10~ 109, 139, 167-8, 198,230-1 unrecorded, 123, 139, 170

UFO, see last in first out liquidation, 5, 13, 127, 180, 192 lock boxes, 185 long-term financial outcome rating, 19

Madoff, Bernard, 302 management communieations, 63-6


INDEX 415

management of assets, liabilities, and equity, see assets, liabllities, and equity management

management of cash flow, see cash flow management

management of operations, and use of plans, 66-70, 71-2


management reports and information, 137-42

and access, 138 and content, 137-8 and form, 137 and outcomes table, 142 and performance levels table, 141 and timing, 139

market forces environment (table), 38 Markopolos, Harry, 302 MBA program, xxiv-xxv mediocrity, 28, 395 Meek, Gary, 53, 138 meetings, 6, 64-7, 7l, 87, 225,

324-5,359 methodology, xxi-xxvi, 1-4,9-19 mission statement, 133,268,322-3 multiplicative risks in a global business

(figure), 31

NAICS, see North Ameriean Industry Classifieation System

NAPCS, see North American Product Classification System

narrative, 254, 291 negotiating, 89-98, 254-6, 379

alliances, 89-98 approach, 379 and strategie planning, 254-6

netincome, 113-14, 116, 128-30, 176, 213, 253, 282

noncurrent assets, 178,207-9,252, 309,355


noncurrent liabilities, 206, 212-13, 309 outcomes table, 213 performance levels table, 212

nonprofit organizations, xxi

416 INDEX

North Ameriean Industry Classifieation System (NAICS), 301-2

North Ameriean Product Classifieation System (NAPCS), 302

numbering systems, 302-5, 310-12 for parts, 304-5 structure of, 310-12

Ocean Tomo 300 Patent Index, 208 OECD, see Organization for

Economie Cooperation and Development

one rating (1) (excellent), 18 ontology, 300 operating expenses, 114, 116,227-30,

251-2,309 operating results, 142-54 Oracle Corporation, 290-1 Organization for Economie

Cooperation and Development (OECD), 277

Ostwald, Philip, 142,249 outcomes (tables)

alliances with other functions, 92 barriers to entry, 40 board of directors, president, majority

interest, 83 board of directors, president, minority

interest, 84 breakeven, sales volatility, and profit

margin,116 business processes, 164 cash flow, 181 cash flow management controls, 188 cash flow volatility, 121 cash position, 189 chart of accounts, 168 closing the books, 173 complementary products, 51 cost of goods sold, 226 cost system, 146 current liabilities, 211 debt/equity, 119 dividends/net income, generie

strategy, and earnings trend, 129 equity,215 ERP implementation, 299 ERP operations, 297

financial analysis of operating results, 154

financial controls, 136 financial forecasting, 268 financial offieer relationship with

president, 96 free cash flow, return on equity, 126 information taxonomy, 317 intensity of competition, 49 inventory management, 200 investor relationships, 105 leading finance staff, 337 long-term rating, 19 management communieation, 68 management reports, 142 noncurrent liabilities, 213 operating expenses, 230 other current assets, 202 other noncurrent assets, 209 parent and subsidiary operating

relationship, 80 parent strategie dependence on

subsidiary, 74 polieies and procedures, 134 power of customers, 44 power of suppliers, 42 relationship with lenders, 101 revenue operations, 224 senior managers, 65 strategie planning process, 270 strategy level, 36 subsidiary strategie dependence on

parent,76 supervising divisional/subsidiary

controllers, 335 tax authorities, 109 taxes, 232 tone at the top and ethies, 89 use of plans in managing

operations, 72 working capital management, 124 written strategie plan, 245

outsourcing, 53-4, 109, 115, 152, 286 Overbeck, Jennifer, 86

Palm Inc., 36 parent company-subsidiary

interdependence, 72-7

outcomes table, 74, 76 performance levels, 73, 75

parent company-subsidiary operating relationship, 77-80

outcomes table, 80 performance levels, 78-9

part descriptions, 311 paths to success and failure, 391-8 payables, 123, 160, 174, 176,210-11,

227, 260, 309 performance levels (tables), 15-16

alliances with other functions, 91 barriers to entry, 39 barriers to exit, 41 board of directors, president, majority

interest, 82 board of directors, president, minority

interest, 83 breakeven, sales volatility, and profit

margin,115 business processes, 163 cash flow, 180 cash flow management controls, 187 cash flow volatility, 120 cash position, 188 chart of accounts, 165 closing the books, 172 complementary products, 49 cost leadership strategie position, 33 cost of goods sold, 225 cost system, 143 current liabilities, 210 debt/equity, 118 defined, 10-14 dividends/net income, generic

strategy, and earnings trend, 129 equity,214 ERP implementation, 298 ERP operations, 296 financial analysis of operating

results, 152 financial controls, 135 financial forecasting, 267 financial offieer relationship with

president, 93 free cash flow, return on equity, 125 information taxonomy, 315 intensity of competition, 48

INDEX 417

inventory management, 199 investor relationships, 104 leading finance staff, 336 management communieation, 67 management reports, 141 moving between, 391-7 noncurrent liabilities, 212 operating expenses, 228 other current assets, 201 other noncurrent assets, 208 parent and subsidiary operating

relationship, 78 parent strategie dependence on

subsidiary, 73 polieies and procedures, 132 power of customers, 44 power of suppliers, 42 pressure from substitute products, 46 priee/book value, priee/earnings, 126 property, plant, and equipment, 204 receivables, controls, 190 relationships with lenders, 100 revenue operations, 222 senior managers, 64 strategie planning emphasis, 69 strategie planning process, 269 subsidiary strategie dependence on

parent company, 75 supervising divisional/subsidiary

controllers, 332 tax authorities, 108 taxes, 231 tone at the top and ethies, 88 use of plans in managing

operations, 71 working capital management, 122 written strategie plan, 243

performance ratings, 18-19,391-7 long-term, 19 moving between, 391-7 outcomes table, 18

Piek, Katharina, 5-6, 84 Polanyi, Miehael, 4 polieies and procedures, 131-4


politieal roles of financial advisors, 383-6

418 INDEX

Porter, Michael, 17,29,31-8,40,266,392 positive pay, 185 power of customers, 37-8, 43-5

outcomes, 44 performance levels, 44

power of suppliers, 37-8, 40-3 outcomes, 42 performance levels, 42

price/book value, price/earnings, 125-7

performance levels, 126 private equity, 26-8, 80-1, 98-9, 102-7,

117,178,375-6 product development, 69, 119,248-9 product differentiation strategy, 32,

34-6 products,32-8,45-~69, 119,248-9

developing,69, 119,248-9 and differentiation strategy, 32, 34-6 pressure from competing, 37-8, 45-7 and strategic planning, 248-9

professional development, 143, 152,270, 335-8

profit, 113-17, 124, 139, 145-7,219-35 gross, 113, 124, 139, 145-~227 improvement of, see profits,

improving margins, 114-17

profits, improving, 219-35 and cost of goods sold, 224-7 and invoicing, 221 and operating expenses, 227-30 and operating expenses assessment,

229-30 and revenue operations assessment,

221-4 and revenue recognition, 220-4 and taxes, 230-3

project initiation, 288 project management, xxii Project Oxygen (Google Inc.), 86-7 property, plant, and equipment, 203-7

performance levels, 204 psychological assessment, 98 public companies-entrepreneur divide, 9 purchasing card statement, 229, 282

QuickBooks, 166,290-1

realignment, 2 realism, and time for tasks, xxii receivables, 113, 121-2, 176, 189-94,

220,309 controls, and performance levels, 190

recruiting, 97-9, 250-1,328-35 Reinhart, Carmen, 258 relationships

external, 99-111; see also external relationships

lender,99-101 parent company-subsidiary, 70-80 and performance of the board of

directors, 80-4 representational redescriptions, 378 Research in Motion (RIM), 36 resonance, 377 responsibility reporting, 137-8, 153,

353,371 return on equity (ROE), 124-6 return on investment (ROI), 138, 147, 152 revenue, 220-4,279

and assessment of operations, 221-4 and outcomes table, 224 and performance levels, 222 recognition, 220-1, 279

RIM, see Research in Motion risk, xxii, 21-54, 100-1, 103, 113-14, 117,

135,169-73,179-80,188-92,220, 238-41, 375,401

analysis, 24-9, 56-7 and cash position, 188-9 and closing books, 169-73 and credit, 190-2,220 and default risk, 99-100 and financial controls, 135 and financial flexibility, 179-80,401 financial ratios as a gauge of, 113-14 hierarchy of, 238-41 management, see risk management and private equity, 103,375 questions regarding, 56-7 scores, see risk scores

risk and globalization, 29-31 riskmanagement, 1-3, 10-11, 17-18,

21-54,238-41 and competitive strategy, see

competitive strategy

and CO SO framework, 21-4 and dependence on other factors

(table),25 and globalization, 29-31 and hierarchy of risks, 238-41 questions regarding, 54-7 and risk analysis, 24-9, 56-7 and risk scores, 24-6, 368-9

risk scores, 24-6, 368-9 risks, hierarchy of, 238-41 ROE, see return on equity Rogoff, Kenneth, 258 ROI, see return on investment

sales forecast, 66, 69, 121, 159,247-9 sales volatility, 114-17 SAP,290 Sarbanes-Oxley Act (SOX), 6, 102, l34,

136, 158,27~291-2,375 Schapiro, Mary, 279 SEC, see Securities Exchange

Commission The Second Great Contraction, 258 securities analysts, xxv Securities Exchange Commission (SEC),

8, 87, l39-40, 167,207,277-80,287, 301-3

senior management, 61-99, 375 assessment of, 61-70; see also senior

management, assessment of and board of director performance,

80-4 communieation of, 63-7 and ethies, 84-9, 375 and negotiating alliances, 89-90 and parent and subsidiary

relationships, 70-80 and relationship with president, 90-0 and strategie planning, 66-70 and tone and ethies, 84-9

senior management, assessment of, 61-70

and management communieations, 63-6

and outcomes table, 65 and performance, 61-70 and performance levels, 64 and planning, 66-70

six sigma, 162, 195 slow growth, 257-60

INDEX 419

small and medium sized entities (SMEs), 279-81,283

staffing budget, 250-1 Standard Industrial Classifieation Code

(SIC),301 Stanton, John, 323 statement, bank, 186, 282 statement, cash flow, 175,253,261,282 statement, financial, 3, 6-7, 24, 65, 116,

131, 135, 152, 170-2, 175, 184-6, 206,209,214,229,246-7,253, 255-6,261-2,279,282-3,305, 352,383-4

statement, GAAP, 282 statement, income, 167-8, 175, 185,219,

226,230,261,264,282 statement, purchasing card, 229, 282 strategie planning process, 69, 241-56,

266-70 analysis of, 266-70 and balance sheet, 252-3 and budgets, 247 and capacity, 249-50 and cash flow forecast, 253 and contingencies, 253-4 and "emphasis," 68 and narrative, 254 and negotiations, 254-6 and other operating expenses,

251-2 and outcomes table, 269 and performance levels, 269 and products, 248-9 and sales forecast, 247-8 and staffing, 250-1 and written strategie plans, 243, 245

strategie plans, budgets, and financial models, 237-73

and analysis, 266-70 and economie instability, 257-60 and financial models, 260-71 and forecasts and cost reductions, 256 and hierarchy of risks, 238-41 and process, see strategie planning

process and questions, 270-3

420 INDEX

strategie position product differentiation (table),34

strategy and performance, 35-6 outcomes table, 36 performance level, 35

stretch budget, 248 subsidiary-parent company

interdependence, 72-7 outcomes table, 76 performance levels, 75

subsidiary-parent company operating relationship, 77-80

outcomes table, 80 performance levels, 78-9

subsidiary supervision, 331-5 outcomes table, 335 performance levels, 332

substitute products, pressure from, 37-8, 45-7

performance levels, 46 supplier power, 37-8,40-3 supply chain, 312-17

and IT, 314-17 systems, see Enterprise Resource

Planning systems

tables, explanation of, 14, 18 tax authority, 107-9,355

and outcomes table, 109 and performance level, 108

taxes, 107-9, 116, 132, 138-9, 145, 167-8, 185,198,200-1,212-13,227,230-3, 250,252,260-1,281-2,301,305-7, 309,355,367

and deductions, 132 deferred, 116,200,212-13 and documentation, 132 andincome, 116, 167-8,230-2,309 and liabilities, 107, 109, 139, 167-8,

198,230-1 and LIFO, 145 and outcomes, 232 and payroll, 185, 260 and performance levels, 231 and profits, 230-3 reporting, 230-2, 305-6 tax authority relationships, 107-9,355

taxonomy,285,292,300-1~401

and chart of accounts, 305-6 and financial reporting systems, 305-10 and IT, 314-17 and national classifieation systems,

301-2 and part numbering system, 304-5 and structure of a numbering system,

310-12 and using ERP, 302-4

Thinkexist, xxii Thinking Course (1994) (De Bono), 326 The Three Pillars of Self-Effidency

(2003) (Watkins), 326 three rating (3) (mediocre), 18 time

efficiency, and tasks, xxii and shorter time to get results, 9

TMI software, 140,305 Tolstoy, Leo, 9 tone at the top, 84-9

and outcomes table, 89 and performance level, 88

trade deficit, 51-4 treasury, xxv trust, xxii turnaround, 2, 4-7, 13, 16-18, 33-4,

66,69,85-6,95,104,115-16,119, 123-4,126,140-1,162,168,178-80, 200,206,239-40,35~360,365

two rating (2) (good), 18

unwanted public disclosures, 233 U.S. trade defidt (table), 52

venture capital and private equity relationships, 102-7

volatility, and cash flow, 119-21 volume, priee, cost and mix, 148-51, 153

Watkins, Miehael, 31-2, 130,325-6, 356,371

wire transfers, 186 working capital management, 121-4,

176,178,180,370 and outcomes table, 124 and performance levels, 122

working smarter, xxii, 1,321-50 and the daily meeting, 324-5 and the first ninety days, 325-6 and leading financial staff, 335 and the next generation ofleaders,

335-8 and purpose of financial

management, 322-4 and questions regarding, 338-50 and recruiting, 328-35 and thinking, 326-8

INDEX 421

world exports/imports, 51, 54 WorldCom, 6, 383 written strategie plan

outcome tables, 245 performance levels, 243 see also strategie planning process

XBRL, see eXtensible business reporting language

zero-based budgeting, 251

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