Strategic Management Accounting and Balanced Score Card

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CHAPTER 17: ACCOUNTING FOR STRATEGIC MANAGEMENT CHAPTER OUTLINE    Learning outcomes Introduction Organisational strategy o Definition o Cumulative strategy (strategising)  Strategic management accounting (SMA) o Definition o Components of SMA o Does SMA still exist; or, what is it becoming?  The balanced scorecard o Its origins and its purpose o Elements and characteristics of a balanced scorecard o Designing a balanced scorecard o Features of a balanced scorecard o Why has the balanced scorecard stood the test of time? o Critique of the balanced scorecard     Roles of management accountants in accounting for strategic management Chapter summary Recommended reading References © John Burns, University…show more content…
2. A tool or technique that when an organisation appears to be ‘off course’ in respect of its strategic goals, things can again be learned so as to make better and more informed decisions in the future, but also that pointers will be available to guide managers towards decisions (and some changes implemented) that will bring actions and strategic aims back in line with each other. In so doing, managers will be taking into account significant alterations to both internal (i.e., organisation-specific) and external factors which impact the context in which the organisational goals and aims have been established. This process of (ongoing) monitoring and re-alignment is nowadays cumulative and open-ended for most organisations (see below). Being strategic, i.e. engaging in strategic management and all that this entails in terms of gathering and using management information, is not a static phenomena but rather a moveable process, necessarily changeable and © John Burns, University of Exeter February 2012 4 adaptable so as to accommodate the fast- and frequently-changing environment in which organisations operate nowadays. All organisations need to be strategic, not just commercial
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