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Mnmnt ccontin toos ortoa omorro
www.cimaglobal.com/ma
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Abou he survey 4
1 Overvie o resuls 6 1.1 Ornistion o th nnc nction 6
1.2 Th innc o ornistion siz 6 1.3 Th rn o toos crrnt in s 7 1.4 Th toos most ik to b introc soon 7
2 Resposes by secor 8
3 Resposes by regio 9
4 Resposes by orgaisaio size 10
5 Operaioal ools 11 5.1 Costin toos 11
5.2 Pricin toos 135.3 Btin toos 155.4 Protbiit nsis toos 175.5 Invstmnt cision mkin 185.6 Othr oprtion toos 19
6 Maagerial maageme accouig 20 6.1 Prormnc msrmnt toos 20
6.2 Prormnc mnmnt toos 216.3 Rwr sstms 24
7 Sraegic ools 25 7.1 Prormnc rportin toos 25
7.2 Strtic tchniqs 25
8 Coclusios 28 8.1 Nmbr n vrit o toos 28 8.2 Trition vrss nw toos 28 8.3 Siz n rion vritions 28 8.4 Crrnt isss or rsponnts 29
Coes
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Th CIMa mnmnt ccontin srv skbot crrnt n intn s o mor thn 100mnmnt ccontin n rt toos, n wscompt b 439 rsponnts in J 2009.
Th srv covrs tchniqs miir to othr
mnmnt iscipins, n incs nrpprochs s w s th ppi tchniqssst b th trm toos.
Abou he survey
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A selecio o maageme accouig ools
Th srv covrs 11 ctoris o mnmnt ccontin toos, spit into oprtion, mnri nstrtic rops. Th nmbr o toos in ch ctor vris rom v (rwr sstms) to 16 (strtictoos). us o th toos is not mt xcsiv or xmp in rtion to th oprtion ropspricin tools ctegory, dierent segments o the business my use dierent pricing strtegies, or twoor more tools m b s in combintion (or xmp cost-ps pricin n trnsr pricin btwnbsinss nits).
the imporace o selecio
Mnmnt ccontnts mst choos th riht too or th spcic contxt, cision bs on thir
tchnic know, prossion xprinc n jmnt. Whi n ccontnt invov in nncirportin oprts in stnris nvironmnt tht ows itt choic, mnmnt ccontntmst s wi rn o skis to choos th riht too or th job.
A healhy urover
usin th riht too or th riht contxt mns tht prctics chn s ornistions ns chn,n so s nw toos r introc, provn n issmint throhot rions or instr sctors.Th mnmnt ccontnt sho rssr srs tht sch trnovr in th s o toos is ntrn bnci, n os not sini sn ck o connc in too, or n mission tht its ormrppiction ws mistk.
wha he survey ells us
Th srv sks rsponnts both bot thir crrnt s o toos, n thir intntions to rop or opttoos. from this w cn rw concsions bot th xtnt to which rsponnts hv stt on thirrn o toos, or r srchin or bttr sotions. Th inormtion cptr b this srv rprsntsprctics n intntions rom th srv poption s t smmr 2009, which cn b compr toothr rvnt srvs, n ct s snpshot or bsin bnchmrk or onoin CIMa rsrch.
Ierese paries
This ppr intis th most popr crrnt mnmnt ccontin toos in ch ctor.frthr t rom th srv wi b pbish sbsqnt, to ow prctitionrs to inti thostoos which most rsponnts intn to opt within th nxt two rs, which miht thror b
worth invstitin b non-srs; th st popr toos, n thos which crrnt srs most intnto rop rsts which m inict tht crtin toos r bcomin ott, or r sorc oisppointmnt to srs.
Othr mnmnt iscipins m b intrst to rn bot th rn o toos (or nctions) withwhich th mnmnt ccontnt is or cn b miir, n so bot nr vopmnts in thiscipin. This wi b o intrst too to rvnt tchin n rsrch cmics. Constnts,sotwr voprs n othr sotion provirs wi b intrst in th intiction o poprn npopr toos, n trns in thir s.
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H o th srvs rsponnts r mpo in th srvic sctor, m p o prossion srvics,nnci srvics n othr srvics (s r 2). amost on thir o th rsponss r rom thmnucturing sector. Note tht the sector lbelled other comprises public nd eduction nd ll otherrsponss (rom instr sctors sch s rti n tr; IT n tcommnictions; hospitit tc).
Figure 2: Resposes by secor
10%
8%
32%Services
sec
tor
19%
31%
50%
Manufacturing
OtherTotal services
Financial services
Professional services
Other services
fir 3 shows how th rsponss b sctor r spit cross th v rions o th srv. This shows
tht in th asin n erop (othr thn uK) rions, mor o th rsponss r rom mnctrin incomprison to othr rions.
Figure 3: Resposes by secor ihi regio
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
26% 47% 28%
30% 47% 23%
44% 44% 13%
45% 43% 12%
27% 53% 20%
Rest of World
Africa
Asia
Rest of Europe
UK
Manufacturing
Services
Other
2. Resposes by secor
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fir 4 shows tht r proportion (61%) o th rsponnts is bs in th uK. amost rsponnts r CIMa mmbrs who hv bn spcic invit to compt th srv, with vrsm nmbr o othr rsponnts. Th rion composition o rsponnts to th srv throrrcts ob CIMa mmbrship, which is 75% uK bs.
Only 12% o the respondents re rom those regions which mke up the survey ctegory Rest o World.This compriss n rion with ss thn 30 rsponnts rthr thn n ttmpt to rop rions withsimir conomic or ctr contxts. W intn to ncor mor rsponnts rom ths rionsor tr srvs, to xpor rion pttrns bttr.
Figure 4: Perceage resposes by regio
6%
3%
0%2%
61%
12%9%
7%
12%
RestoftheWorld
UK
Rest of Europe
Asia
Africa
Rest of World
Australasia
N America
C & S America
Middle East
ansis o th siz o ornistion rom ths rion sb-smps shows thr is bis towrssmr ornistions in th aric sb-smp (s r 5). Whn n aric rsts r consir,thror, it sho b born in min tht th rsts r innc b ornistion siz s ws rion.
Figure 5:Regioal resposes by orgaisaio size
Small (10,000)
Rest of World
Africa
Asia
Rest of Europe
UK
0% 20% 40% 60% 80% 100%
16% 21% 56%
41% 21% 28%
28% 28% 38%
20% 27% 43%
26% 23% 37%
7%
10%
6%
10%
15%
3. Resposes by regio
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fir 6 shows tht ovr h o th srvs rsponnts r mpo b ornistions tht r ithrr (mor thn 250 mpos) or vr r (mor thn 10,000 mpos).
Figure 6: Resposes by size o orgaisaio
Small (10,000)
26%
23%
39%
12%
dt on th nmbr o bsinss nits co on b coct or 110 rsponnts, bt thr r norons or spposin this nsis is nrprsnttiv o th ntir smp. Th rsts r shown
in r 7. athoh mor thn qrtr o ornistions hv on on bsinss nit n botor-ths hv v or wr, th vr nmbr o bsinss nits within rsponnts ornistionsis v. This vr is innc b th ct tht som vr r mtintion ornistions hvhnrs o bsinss nits.
Figure 7: number o busiess uis ihi he orgaisaio
0% 5% 10% 15% 20% 25% 30%
% of respondents who had this number of BU
19%
18%
24%
11%
28%
More than 5 BU
5 BU
Between 35 BU
Between 13 BU
One BU
4. Resposes by orgaisaio size
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This sction is concrn with th trition oprtion tsks which th ornistion mns o itsmnmnt ccontin nction:
costin o ctivitis pricin o procts n srvics nsis o th protbiit o rvn nrtin ctivitis ctiv oction o rsorcs b mns o btin n invstmnt ppris tchniqs.
Respondents were lso sked bout rnge o other opertionl mngement ccounting tools, including:
qit phiosophis sch s tot qit mnmnt (TQM) n bnchmrkin pprochs which r hvi IT-pnnt sch s cstomr rtionship mnmnt (CRM) ppi n mthmtic tchniqs sch s inr prormmin.
5.1 Cosig ools
fir 8 shows th rtiv poprit o costin toos. Th mor trition toos o vrinc nsisn ovrh oction rmin th most popr.
Figure 8a: Relaive populariy o cosig ools
0% 10% 20% 30% 40% 50% 60% 70% 80%
Time driven ABC
Actvity based costing (ABC)
Overhead allocation
Integrated cost and financial accounts
Throughput accounting
Variable or marginal costing
Variance analysis
Standard costing
Kaizen costing
Life cycle costing
Target costing
Quality costing
Full (absorption) costing
Costing for jobs, batches, processes or contracts
Th rsts inict tht rsponnts s rn o costin toos on vr, n ornistion wis or rom th 14 toos srv. Th rr th ornistion, th mor ik it is to s n too nth mor toos it ss. fir 8b shows tht th rst ornistions r th hvist srs o toos,with th xcption o qit costin.
5. Operaioal ools
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fir 9b shows tht both toos r mch mor common s in th mnctrin sctor. This isnot nxpct, s it rcts th tnnc o mnctrin ntitis to oct proction whr wsor tx rts r ow, or whr rw mtris r mor ri vib. In ition it rcts th inkbtwn th two pricin mthooois; th trnsr pric btwn bsinss nits is nr cost,whi th pric to th n sr is otn cost ps prot mrin.
Th srvic sctor sms comprtiv knr on introcin nw pricin toos, showin som intrstin thm (s r 9c) bt spci in mrkt snsitiv pricin n smnt pricin.
Figure 9c: Ieres i pricig ools by secor
Cost-pluspricing Market sensitivepricing Segmentalpricing PriceSkimming PenetrationPricing Transfer pricingbetween BU
Manufacturing Service
Percentageofnon-usersproposingto
introducetoolwithin2yrs
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
This miht rct mor xib pproch to pricin in th srvic sctor, s pric comprison is mchhrr or cints who s srvics thn or cstomrs who b procts. In ition n ornistion inth srvic sctor miht tn to prioritis othr consirtions thn short-trm prot, sch s:
its rtionship with th cint (whthr inin nw on, or kpin n importnt xistin cint) th n to in xprinc or pro in nw mrkt th n to kp rsorcs po th n to cross-s othr srvics.
Ths th srvic sctor miht hv rtr intrst in smnt pricin (irnt prics orirnt mrkts), pntrtion pricin (s to ntr nw mrkts or pn mrkt shr) nmrkt snsitiv pricin.
lookin t ornistion siz, thr wr two rsts o not. 11% o vr r ornistions whoo not crrnt s mrkt snsitiv pricin propos to introc it within th nxt two rs(64% crrnt s it), n 10% o sm ornistions propos to introc smnt pricin(bt on 22% crrnt s it).
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figure 12b shows tht while one in six very lrge orgnistions use cpitl sset pricing model (CaPM) ndon in svn s r options to vt invstmnt cisions, th r not s wi s s th othrtoos. This sms srprisin s both toos r w stbish, rtiv s to s n wi tht.
anothr nxpct rst is tht rsponnts rom sm ornistions rport sin invstmntppris toos (spci CaPM n r options) mor thn mim ntitis. 8% o smornistions s CaPM, compr with 3% o mim ornistions, n 4% s r optionscompr with 2% o mim ornistions.
5.6 Oher operaioal ools
This is n intrstin ctor, s ornistion siz os not sm to b sch stron innc on too
s. On vr, rsponnts s jst ovr two oprtion toos ot o nin srv. fir 13 showstht thoh ths toos r s mor b th rst ornistions, this tnnc is not s strons or othr too ctoris.
Figure 13: Use o operaioal ools by size o orgaisaio
70%
60%
50%
40%
30%
20%
10%
0%
Theory of constraints
Small Medium Large Very large
Linear programming Learning curves Benchmarking Decision tree analysis
Customer relationship
management
360 degree reviews Value chain analysis Total quality
management
Bnchmrkin is th ominnt mnmnt ccontin too or ornistions o sizs thoh it isss prvnt in th (possib mor scrtiv) sm ornistion.
aso popr r 360 r rviws, cstomr rtionship mnmnt (CRM) n tot qitmnmnt (TQM) thoh this st is not s popr in vr r ornistions s in mim nr ons. It is possib tht vr r ornistions hv bspok qit inititivs sin orthm, which th o not consir TQM.
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This sction is concrn with how prormnc is msr, mn n rwr. Th ntr osom o ths mnmnt ccontin toos with thir rrnc to prot, or cpit mpo ssts it is ncssr to jst or th innc o instr sctor.
6.1 Perormace measureme ools
fir 1 show tht prot bor tx is th scon most wi s mnmnt ccontin tooovr. fir 14 shows cr tht whn it coms to th s o prormnc msrmnt toos bsctor, prot bor tx is th most wi s msr. On vr ornistions s btwn twon thr prormnc msrmnt toos ot o th v srv, rtiv hih proportioncompr to othr ctoris o toos.
Figure 14: Use o perormace measureme ools by secor
Manufacturing
Return on capital
employed
Cash flow return
on investment
Residua l income Econ omic va lue added Profit before t ax
Other
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Professional
services
Financial
services
Other
service
Public and
education
Thr o ths prormnc msrmnt toos r mon th most s o th 100+ in th ntirsrv ROCe, CfROI n prot bor tx r in th top 20 most s toos, istrtin th
importnc o ths msrs.
6. Maagerial maageme accouig
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6.2 Perormace maageme ools
Th common pttrn o incrs poprit o toos b sccssiv rr ornistions is vr notbor prormnc mnmnt toos (r 15). On vr ornistions s jst nr two ot o ihtprormnc mnmnt toos. lr ornistions s on vr twic s mn prormncmsrmnt toos s sm or mim ons.
Figure 15a: Use o perormace maageme ools by size o orgaisaio
Balanced scorecard
Small Medium Large Very large
Business process
re-engineering
Activity based
management
Total performance
scorecard
Value based
management
Six sigma Value mapping Performance prism
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
fir 15 shows th bnc scorcr is th most wi s msr in ornistions. Othrsrvs conrm simir rsts or th bnc scorcr, or xmp it is s b 60% o fortn 1000(i.. vr r) compnis. Its poprit shows no immit sins o btin, it bin th most ik too(o thos in or srv) to b introc b crrnt non-srs o sizs (s r 15b).
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Figure 15b: Ieres i perormace maageme ools by size o orgaisaio
0% 5% 10% 15% 20% 25%
Very large Medium Small
Percentage of non-users proposing to introduce tools within two years
Large
Total performance scorecard
Value based management
Value mapping
Performance prism
Business process re-engineering
Activity based management
Six sigma
Balanced Scorecard
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6.3 Rear sysems
for toos wr srv, incin xctiv incntiv schms (or snior irctors) n mnmntincntiv schms (or mnri ros). On vr, ornistions s jst nr two rwr sstms.
fir 16 shows th rion nsis, which inicts tht prot shrin schms sm rtivnpopr in asi, with on 13% o rsponnts crrnt sin thm, n rtiv popr in aric,whr 37% o rsponnts crrnt s thm. O th othr rions, th uK bhvs mor ik aric(with 27% crrnt sin prot shrin schms), n rst o erop n th rst o Wor bhvmor ik asi (with 16% n 19% o rsponnts rspctiv sin thm).
Figure 16a: Use o rear sysems by regio
Executive incentiveschemes
Management incentiveschemes
Profit sharingschemes
Share options
80%
70%
60%
50%
40%
30%
20%
10%
0%
UK
Rest of Europe
Asia
Africa
Rest of World
Overall
fir 16b shows tht sm ornistions ppr to bhv mor ik r ornistions whn itcoms to prot shrin schms (i.. th both s thm mch mor thn mim siz ornistions).This m b xpin b th ct tht th mpos o micro n sm compnis r tpic othrmi mmbrs n th ownrs r mor ik to b ivin thm shr o th prot. Mim sizornistions m tn mor to b privt own, ths ownrs o not obi to shr prcnt o thir prots with th st. fin r n vr r ornistions m n incntivschms mor ctiv thn commn n contro mnmnt to motivt th sir bhviormonst nmros n isprs workorc.
Figure 16b: Use o rear sysems by size o orgaisaio
70%
60%
50%
40%
30%
20%
10%
0%
Executive incentiveschemes
Management incentiveschemes
Profit sharingschemes
Share options
Small
Medium
Large
Very large
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Figure 18a: Relaive populariy o sraegic ools
0% 10% 20% 30% 40% 50% 60% 70% 80%
Strategy mapping
Core competencies
CIMA strategic scorecard
Long-range and business planning
Risk management
Environmental impact assesment
Mission statement
Value for money audits
Value chain analysis
Value engineering or value analysis
Competitor analysis
Strategic planning
SWOT analysis
Boston matrix
Environmental management accounting
Figure 18b: Use o sraegic ools by size o orgaisaio
Strategic planning
Small Medium Large Very large
Value chain analysis
SWOT analysis
Risk management
Value for money audits
Mission statement
Competitor analysis
Value engineering
or value analysis
Strategy mapping Boston matrix Environmental management
accounting
Long range and
business planning
Core competencies
CIMA strategic
scorecard
Environmental
impact assesment
80%
70%
60%
50%
40%
30%
20%
10%
0%
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Rrs cn n n ovrviw o th rsts t th ront o this rport. Som concsions r sst:
8.1 number a variey o ools
Or srv show tht mnmnt ccontnts s nmbr o toos, on vr 33, cross rno oprtion, mnri n strtic nctions. This monstrts th wi rn o ornistionprormnc or which th mnmnt ccontnt cn provi t.
8.2 traiioal versus e ools
Th toos s r mix o trition2 n nw toos. This sms hth stt or n iscipin.It ssts tht th iscipin hs soi ontion, n princips which nr t r rn so thtth bo o know is contin xpnin. Howvr, som trition toos r sti wi sspit th commnts b cmics n constnts tht th sho b iscontin. for xmp,
mn txtbooks commnt on th nsitbiit o pbck s mns o invstmnt ppris. yt itrmins popr, spit thr bin simp trntivs which iv mor inormtiv rsts.
Btin is n r whr mn commnttors sst tht trition prctics hv bcomott. dict movmnts hv vov to chmpion both bon btin, n bttrbtin; n thr is r bo o itrtr which commnts nr on th tnnc orbts to trir m-pin, bt-pin n othr sb-optim bhvior. Howvr, itwo n ric r-invntion o btin n prormnc mnmnt to prs srsthr r trntivs to csh orcsts, n nnci r orcsts (both o which r monstth most s toos).
8.3 Size a regioal variaios
Siz is n obsrvb innc on too s, s r 19 shows. Th rr th ornistion, thmor toos it ss. Whr this is not th pttrn, ssts tht thos toos r mor pproprit
or smr ornistions.
Figure 19a: Average umber o ools use (orgaisaio size)
Small Medium Large Very large
40
35
30
25
20
Th mnctrin sctor ss th most toos, oow vr cos b th nnci srvics sctor.Rsts which jmp ot r th rtiv poprit o Six sim, n rtiv npoprit o aBM orth mnctrin sctor (s r 15c).
Th pbic sctor tns to s wr toos ovr, bt thos it ss tn to b strtic toos.This is probb bcs th pbic sctor ss ss pricin n costin toos, to th ck o protmotiv in ths ornistions.
2 B trition w mn th rtiv simp n on-stbish toos sch s minstrmbtin prctics, stnr costin tchniqs, pbck tc.
8. Coclusios
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Figure 19b: Average umber o ools use (secor)
Manufacturing Service Professional
services
Financial
services
Public and
education
Other
36
34
32
30
28
26
24
22
20
8.4 Curre issues or respoes
Rsponnts wr sk Wht r th min isss crrnt conrontin th mnmnt ccontinnction in or ornistion? 199 rsponnts rpi (45% o th smp); n th isss which mostconcrn thm r:
sotwr isss sch s ott, inxib or poor intrt sstms (rqirin mnrconciitions or othr intrvntions to crt rports) or ck o strtic vision or IT
spcts ctin th qit o inormtion th provi srs mns or bttr or mor tim
inormtion, or bspok or mor stnris inormtion short o rsorcs both th ck o sitbiit qi nnc prsonn in nnc n othr
prtmnts, n ck o invstmnt in nnc ck o nrstnin bot th contribtion possib rom mnmnt ccontnts, both rom
th ccontnts thmsvs (mittin to inqt know o toos) or ck o co-oprtionn pprcition rom srs.
Th srv its prov to b hp too. Svr rsponnts commnt tht it ws s to brmin o (or in som css introc to) th toos vib or prticr prposs. Whnrsponnts rciv th ti rsts, th wi b b to bnchmrk thir prctics inst thirprs; n consir whthr th r sin th bst st o toos or thir ns.
frthr rports on th srv t wi ocs on rion, siz n sctor vritions; n th trvopmnt o th nnc nction.
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Reereces
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