DYNAMICS of a NEW CURRICULUM
James E. Sorensen, Ph.D., CPASchool of Accountancy University of [email protected] 303.871.2028
RESPONDING TO OUR CUSTOMERS
School of Accountancy
MISSIONENLIGHTENED PRACTICEPROFESSIONAL ACHIEVEMENTCOMMITMENT to COMMUNITY
COMMITTEE GOALSMEET the SOA MISSIONINCREASE ENROLLMENT: majors/minors
School of AccountancyCOMMITTEE GOALS
CONTINUE TO MEET 150 HOUR REQUIREMENTOFFER VIABLE and DESIRABLE DUAL MAJOR OR MAJOR/MINOR OPTIONSPROVIDE MORE GRADUATES TO THE CORPORATE ACCOUNTING SECTORMAINTAIN STRONG PERFORMANCE ON POST-GRADUATE PROFESSIONAL EXAMSENHANCE THE MARKETING OF OUR PROGRAM
School of AccountancyIMPACT OF IMA STUDIES
“WHAT CORPORATE AMERICA WANTS IN ENTRY LEVEL ACCOUNTANTS
• “PREPARATION GAP” -- SEE INSERT (1994)
“THE PRACTICE ANALYSIS OF MANAGEMENT ACCOUNTING”
• “WORK ACTIVITIES THAT WILL INCREASE IN IMPORTANCE”-- SEE INSERT (1996)
“COUNTING MORE, COUNTING LESS--(1999) transformations in management accounting
Figure 1
PREPARATION GAP
-15 -10 -5 0 5 10 15 20 25
INDIVIDUAL INCOME TAX
EXTERNAL AUDITING
GOVT & NFP ORGS
FASB STATEMENTS
CORPORATE TAX
CONSOLIDATED STATEMENTS
LONG-TERM FINANCING
INTERNAL AUDITING
ASSET MGT/PLANNING
WORKING CAPITAL MGT
INFO SYSTEM DESIGN
CONTROL/PERFORM EVAL
STRATEGIC COST MGT
PRODUCT COSTING
BUDGETING
To
pic
GAP BETWEEN EXPECTATIONS and EXPERIENCES
Source: “What Corporate America Wants in Entry Level Accountants, Management Accounting, Sept. 1994
Figure 2
WORK ACTIVITIES THAT WILL INCREASE IN IMPORTANCE
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
QUALITY SYSTEMS & CONTROLS
FINANCIAL & ECONOMIC ANALYSIS
INTERNAL CONSULTING
EDUCATING THE ORGANIZATION
PROJECT ACCOUNTING
MERGERS, ACQUISITIONS & DIVESTMENTS
COST ACCOUNTING SYSTEMS
COMPUTER SYSTEMS & OPERATIONS
LONG-TERM, STRATEGIC PLANNING
PERFORMANCE EVALUATION
PROCESS IMPROVEMENT
CUSTOMER & PRODUCT PROFITABILITY
PERCENT
Source: The Practice Analysis of Management Accounting, 1996, p.14; Counting More, Counting Less…, 1999, p. 17.
x 3
4 5
2 1
3 4
x x
1 x
5 2
x x
1999+3yrs
More Most
time critical
New!
New!
New!
New!
School of AccountancyMANAGEMENT ACCOUNTING
PROFIT MANAGEMENTORGANIZATIONAL COST MANAGEMENTSTRATEGIC COST MANAGEMENT
FORMULATION OF DESIGN TEAMSDEVELOP NEW PROGRAM MODULESTEST, EVALUATE AND REDESIGNDEPLOY NEW REVISED PROGRAM
School of Accountancy
YEAR THREEINTERNAL REPORTING PROCESSEXTERNAL REPORTING PROCESSMANAGEMENT CONTROL
TAXATIONCONCEPTS OF FEDERAL TAXATION• FAMILY TAXATION• BUSINESS TAXATION
School of Accountancy
FINANCIAL REPORTINGFINANCIAL REPORTING ENVIRONMENT
• CORPORATE FINANCIAL REPORTING• BUSINESS COMBINATIONS
BUSINESS AUDITING
• PROFESSIONAL AUDITING• FRAUD AUDITING
PROPOSED RESTRUCTURING OF FOUR AND THREE/TWO PROGRAMS
ENTRY LEVEL CORE COURSE (GATEWAY]
BSBA CORE
CYCLES
FAMILY TAXES
TECHNOLOGY
FINANCIAL REPORTING
ENVIRONMENT
CONCEPTS OF FEDERAL
TAXATION
BUSINESS TAXES
ORGANIZATIONAL COST
MANAGEMENT
STRATEGIC COST MANAGEMENT
APPROACH
EXTERNAL REPORTING
PROCESS
CORPORATE FINANCIAL REPORTING
BUSINESS COMBINATIONS
TECHNOLOGY
MANAGEMENT CONTROL
PROFIT MANAGEMENT
INTERNAL REPORTING
PROCESS
PROCESS (SYSTEMS) INTEGRATED
APPLICATIONS WORKSHOP
SCHOOL OF ACCOUNTANCY CURRICULUM
REVIEW COMMITTEE PROPOSED
RESTRUCTURING OF FOUR AND
THREE/TWO YEAR PROGRAMS
DRAFT---DRAFT--DRAFT
PROFESSIONAL AUDITING
BUSINESS AUDITING
THE ACCOUNTING PROFESSION
Proposed Restructuring
INTERNAL REPORTING
PROCESS
PROCESS (PROCEDURES
INTEGRATED
SYSTEMS
CYCLES
TECHNOLOGY
APPROACH
EXTERNAL REPORTING
PROCESS
FINANCIAL REPORTING
ENVIRONMENT
CORPORATE FINANCIAL
REPORTING
BUSINESS COMBINATIONS
CONCEPTS OF FEDERAL TAXATION
FAMILY TAXES
BUSINESS TAXES
TECHNOLOGY
MANAGEMENT CONTROL
PROFIT MANAGEMENT
ORGANIZATIONAL COST MANAGEMENT
STRATEGIC COST
MANAGEMENT
PROFESSIONAL AUDITING
BUSINESS AUDITING
THE ACCOUNTING PROFESSION
SUCCESSFUL CURRICULAR
CHANGE
ENTRY LEVEL COURSE
[GATEWAY]
Examples of new key approaches:
Quality tools manipulate verbal dataenhance problem solving
Strategic planning modelsuseable (BSC) and gold standard (Hoshin Kanri)
Tools for complex multi-criteria problems with both quantitative and qualitative data
AHP (theory) and Expert Choice (computer tool: http://www.expertchoice.com)
Case Protocols
How to Achieve Total Customer Satisfaction
PROCESS IMPROVEMEN
T
PROCESS IMPROVEMEN
T
IMPROVED PRODUCT QUALITY
IMPROVED PRODUCT QUALITY
EFFECTIVE TRAINING
EFFECTIVE TRAINING
Set and review quality levels for
internal and external
customers
Seek out process
problems
How to Achieve Total Customer Satisfaction
PROCESS IMPROVEMEN
TIMPROVED PRODUCT QUALITY
EFFECTIVE TRAININGKNOWLEDGEAB
LE CUSTOMER RELATIONSHIP
EFFECTIVE MARKETING
ALIGN REWARDS & RECOGNITIO
N
Balanced Scorecard
“… A strategic measurement system, not a measure of our strategy”
Larry D. Brady, Executive VP, FMC corporation
Balanced Scorecard
Based on a 2 year study by the Harvard Business SchoolUsed by leading companies like Intel, Johnson & Johnson, Chemical Bank...
Balanced Scorecard
How is this company doing?How will they be doing in the future?
0
20
40
60
80
100
120
140
Yr 1 Yr 2 Yr 3 Yr 4
PROFITS
Balanced Scorecard
0
20
40
60
80
100
120
140
Yr 1 Yr 2 Yr 3 Yr 4
PROFITS
CUST SAT
PROCESS
INNOVATION
How is the same company doing with BSC?How will they be doing in the future?What is happening?
Balanced Scorecard
0102030405060708090
100
Yr 1 Yr 2 Yr 3 Yr 4
PROFITS
CUST SAT
PROCESS
INNOVATION
How is this company doing using BSC?How will they be doing in the future?What is happening?
Balanced Scorecard
FINANCIAL
LEARNING &GROWTH CUSTOMER
BUSINESSPROCESSES
EACH HAS
OBJECTIVES MEASURES TARGETS INCENTIVES
Hoshin Kanri: Defining The Terms
“HOSHIN” = policy, a plan, an aim, or “goal + means”“KANRI” = planning, management or controlPopular translation: policy deployment
In Organization Wide Planning, It Provides
A step-by-step PLANNINGIMPLEMENTATION andREVIEW PROCESS forMANAGED CHANGE using thePLAN-DO-CHECK-ACT (PDCA) cycle.
FIGURE C
Hoshin Kanri, Cross-Functional and Daily (Kaizen) ManagementWHO
WHAT Individual Projects HOW Quality Circles Self-Directed
Continuous Teams Statistical Improvement; Methods; Standardization Seven Basic
Tools
DailyHOW Management
Strategic Organizational WHAT Information Break-Systems; Customer through;Audit Tools Driven Innovation
Cross- Master Plan
Functional HoshinManagement Kanri
Customers and
Suppliers; Vertical Senior Teams & Executive Coordination WHO
WHO Teams
Quality Systems Seven Management & QFD; Reliability Planning Tools
WHAT HOWSource: Goal-QPC, 1997
FIGURE D
HOSHIN PRINCIPLES & COMMON PLANNNG PROBLEMS H
OS
HIN
PR
INC
IPL
E:
Pa
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ipa
tio
n b
y a
ll m
an
ag
ers
Ind
ivid
ua
l in
itia
tiv
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nd
re
sp
on
sib
ility
Fo
cu
s o
n R
oo
t C
au
se
s
Tie
to
pe
rfo
rma
nc
e a
pp
rais
als
Qu
alit
y is
th
e f
ore
mo
st
iss
ue
Un
de
rsta
nd
ing
Ca
tch
ba
ll
Fo
cu
s o
n p
roc
es
s
1 2 3 4 5 6 7
PLANNING PROBLEM:1 No plan 2 Plan not used 3 Unrealistic plan 4 Short-term focus 5 Long-range at corporate level only 6 Long-range not related to daily 7 Failure to measure success 8 Hard to measure success 9 No plan for progress (change) 10 Poor communication (e.g., language, not shared) 11 Fragmented 12 People plan for others 13 Can not handle emergencies 14 New manager on the job 15 Plan used as a weapon, not a tool
Source: D. Mendez, 1997
AHP and EXPERT CHOICE
Appropriate for complex multi-criteria problems using both quantitative and qualitative dataAnalytic Hierarchy Process (AHP)—”the way people think by using comparisons”Expert Choice (computer software)Web site: www.expertchoice.com for explanations and free trial version
Using Protocols in Cases
Provides comprehensive feedback to students—not just one or two scribbled comments (see Word file: Sumitomo Protocol [Sumitomo Electric Industries, HBS] following these slides.)
Enables students to revisit case to identify additional relevant points—promotes mastery learningOperates like a “one-to-one” consultation with the professor—promotes a linkage often not possible with large classes (See PowerPoint file: Sumitomo Protocol following these slides)