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Strategic Business Management

Book Description

Presenting core theories alongside practical applications, this publication will help students understand how to effectively move an organization toward strategic goals. Author Gary Cokins uses his deep knowledge of the subject matter to deliver an easy-to-follow road map to effective and strategic management through:

  • Establishing the integral links between planning and performance
  • Demonstrating how risk management and performance assessment impact planning
  • Applying business analytics and Big Data in the finance and accounting functions as well as marketing, sales, operations and other functions
  • Evaluating the effectiveness of a strategy map and the balanced scorecard as a management tool
  • Tying budgeting to strategy and measuring the effectiveness of both via ongoing performance

Written in a plain, straight-forward fashion that will allow students to draw immediate value from its content, this book pulls together several topics in an elegant yet sophisticated approach. It uses detailed graphics and diagrams to provide students with a clear understanding of the dynamic intersection between key management and organization leadership topics that management accountants need to master in order to fill a strategic leadership role within their organizations.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Contents
  5. Author Biography
  6. Part 1: Overview of Enterprise Performance Management
    1. 1: Introduction
      1. A Dilemma for Accountants
      2. Accountants’ Problem of Denial
    2. 2: Enterprise Performance Management: Myth or Reality?
      1. Executive Pain—A Major Force Creating Interest in Performance Management
      2. What Is EPM?
      3. Is EPM a New Methodology?
      4. Clarifying What EPM Is Not
      5. What Has Caused Interest in EPM?
      6. The EPM Framework for Value Creation
      7. The EPM as a Continuous Flow
      8. A Car Analogy for EPM
      9. Where Does Managerial Accounting Fit In?
      10. EPM Unleashes the ROI From Information
      11. Management’s Quest for a Complete Solution
  7. Part 2: Managerial Accounting
    1. 3: Do Accountants Lead or Mislead?
      1. The Perils of Poor Navigation Equipment
      2. The Perils of Poor Managerial Accounting
      3. The Accountant as a Bad Navigator
    2. 4: A Taxonomy of Accounting and Costing Methods
      1. Confusion About Accounting Methods
      2. A Historical Evolution of Managerial Accounting
      3. An Accounting Framework and Taxonomy
        1. Asking What? So What? Then What?
        2. Predictive Versus Descriptive Accounting
      4. Co-existing Cost Accounting Methods
    3. 5: Managerial Accounting Design Complying with the Causality Principle
      1. Removing the Blindfold With ABC/M
      2. Overhead Expenses Are Displacing Direct Expenses
      3. Impact of Diversity in Products, Service Lines, Channels and Customers
      4. Growing Discontent With Traditional Calculation of Costs
      5. Activities Are Expressed With Action Verbs
      6. Drivers Trigger the Workload Costs
      7. Strategic Versus Operational ABC/M
    4. 6: Strategic Cost Management for Product Profitability Analysis
      1. ABC/M Is a Multi-Level Cost Re-assignment Network
      2. Drivers: Resource, Cost, Activity and Cost Object Drivers
      3. Business and Organisational Sustaining Costs
      4. The Two Views of Costs: The Assignment View Versus the Process View
        1. Vertical Axis
        2. Horizontal Axis
      5. How Does Activity-Based Costing Compute Better Accuracies?
      6. Activity-Based Management Rapid Prototyping: Getting Quick and Accurate Results
      7. Product Profitability Analysis
      8. Two Alternative Equations for Costing Activities and Cost Objects
  8. Part 3: Strategy Management
    1. 7: The Promise and Perils of the Balanced Scorecard
      1. What Is a Balanced Scorecard?
        1. Balanced Scorecards Are Companions to Strategy Maps
        2. Measurements Are More of a Social System Than a Technical One
      2. Scorecard or Report Card? The Impact of Senior Management’s Attitude
      3. GPS Navigators for an Organisation
      4. How Are Balanced Scorecards and Dashboards Different?
        1. Scorecards and Dashboards Serve Different Purposes
        2. Scorecards Link the Executives’ Strategy to Operations and the Budget
        3. Dashboards Move the Scorecard’s Dials
        4. Strategy Is More Than Performing Better
        5. Getting Past the Speed Bumps
    2. 8: Designing a Strategy Map and Balanced Scorecard
      1. Eight Steps to Create a Strategy Map
      2. Scorecards and Strategy Maps: The Enabler for EPM
  9. Part 4: Planning, Budgeting and Forecasting
    1. 9: Predictive Accounting and Budgeting with Marginal Expense Analysis
      1. What Is the Purpose of Management Accounting?
      2. What Types of Decisions Are Made With Managerial Accounting Information?
        1. Rationalisation
        2. Planning and Budgeting
        3. Capital Expense Justification
        4. Make Versus Buy, and General Outsourcing Decisions
        5. Process and Productivity Improvement
        6. Activity-Based Cost Management as a Foundation for Predictive Accounting
      3. Major Clue: Capacity Only Exists as a Resource
      4. Predictive Accounting Involves Marginal Expense Calculations
      5. Decomposing the Information Flows Figure
      6. Framework to Compare and Contrast Expense Estimating Methods
      7. Predictive Costing Is Modelling
      8. Debates About Costing Methods
    2. 10: What’s Broken About Budgeting?
      1. The Evolutionary History of Budgets
      2. A Sea Change in Accounting and Finance
      3. The Financial Management Integrated Information Delivery Portal
    3. 11: Put Your Money where Your Strategy Is
      1. A Budgeting Problem
      2. Value Is Created From Projects and Initiatives, Not Strategic Objectives
      3. Driver-Based Resource Capacity and Spending Planning
      4. Including Risk Mitigation With a Risk Assessment Grid
      5. Four Types of Budget Spending: Operational, Capital, Strategic and Risk
      6. From a Static Annual Budget to Rolling Financial Forecasts
      7. Managing Strategy Is Learnable
  10. Part 5: Integrating Enterprise Risk Management and Enterprise Performance Management
    1. 12: The Integration of Enterprise Risk and Enterprise Performance Management
      1. How Do ERM and EPM Fit Together?
      2. Is Risk an Opportunity or Hazard?
      3. Problems Quantifying Risk and Its Consequences
      4. Types of Risk Categories
      5. Risk-Based EPM Framework
      6. Risk Managers: Friend or Foe of Profit Growth?
      7. Invulnerable Today but Aimless Tomorrow
  11. Part 6: Business Analytics for Accounting and Finance
    1. 13: What Will be The Next New Management Breakthrough?
      1. The History of Management Breakthroughs
      2. Will Business Analytics Be the Next Breakthrough?
    2. 14: How Do Business Intelligence, Business Analytics and Enterprise Performance Management Fit Together?
      1. The Relationship Between Business Intelligence, Business Analytics and Enterprise Performance Management
      2. Overcoming Barriers
    3. 15: CFO Trends with Analytics
      1. Analytics as the Only Sustainable Competitive Advantage
      2. Resistance to Change and Presumptions of Existing Capabilities
      3. Evidence of Deficient Use of Business Analytics in Finance and Accounting
      4. Sobering Indication of the Advances Still Needed by the CFO Function
      5. Moving From Aspirations to Practice With Analytics
        1. Customer Profitability Analysis to Take Actions
        2. Rationalising and Validating Key Performance Indicators in a Strategy Map and Balanced Scorecard
      6. Moving From Possibilities to Probabilities With Analytics
      7. Fill in the Blanks: Which X Is Most Likely to Y?
        1. Increased Employee Retention
        2. Increased Customer Profitability
        3. Increased Product Shelf Opportunity
      8. The CFO Function Needs to Push the Envelope
  12. Part 7: How to Begin Implementing Enterprise Performance Management
    1. 16: Where do You Begin Implementing Analytics-Based Performance Management?
      1. Accept That Analytics-Based EPM Is About Integration and Speed
      2. Assuming an Enlightened Leadership Team, Then What?
      3. Embrace Uncertainty With Predictive Analytics
    2. 17: A Call to Action—Building a Business Case
      1. The Obsession With ROI Justifications
      2. Management and the IT Function Can Be Obstacles
      3. Is EPM Art, Craft or Science?
        1. Balancing a Smart, as Well as a Healthy, Organization
        2. The Power of Business Analytics
      4. The Future of Analytics-Based EPM