![]() ![]() If an organization does not cause its members to understand and focus on these important elements, it will soon find participants becoming solely “profit-centric.” This behavior leads to a short-term focus and potentially dangerous practices that may provide the seeds of self-destruction. Core values can cover a broad spectrum involving concepts of fair play, human dignity, ethics, employment/promotion/compensation, quality, customer service, environmental awareness, and so forth. Specific strategy setting can take many forms, but generally includes elements pertaining to the definition of core values, mission, objectives, and sustainability.Ĭore Values - An entity should clearly consider and define the rules by which it will play. But, strategic planning ultimately defines the organization. It is difficult to see the linkage between strategic endeavors and the day-to-day corporate activities associated with delivering goods and services to customers. ![]() Employees, harried with day-to-day tasks, sometimes fail to see the need to take on strategic planning. In short, “everyone needs to be on the same page.” As such, clear communication is imperative.Ī business should invest considerable time and effort in developing strategy. It is important that they share and understand the organizational plans. These individuals must be orchestrated to work together in harmony. Finally, planning must give thoughtful consideration to financial realities/constraints and anticipated monetary outcomes (budgets).Ī business organization may be made up of many individuals. It then moves to broad-based thought about how to establish an optimum “position” to maximize the potential for realization of goals. First, it occurs at the high level of setting strategy. What does it mean to plan? It is about deciding on a course of action to reach a desired outcome. The central theme is this: (1) business value results from good decisions, (2) decisions must occur across a spectrum of planning, directing, and controlling activities, and (3) quality decision making can only consistently occur by reliance on information.Ī business must plan for success. Conversely, failure to plan, direct, or control is a road map to failure. Correct execution of each of these activities culminates in the creation of business value. Managerial decisions can be categorized according to three interrelated business processes: planning, directing, and controlling. Managerial accounting provides the information needed to fuel the decision-making process. Consistently good decisions result from diligent accumulation and evaluation of information. Good decision making is rarely done by intuition. ![]() Because each management action is predicated upon some specific decision, good decision making is crucial to being a successful manager. To successfully manage an operation also requires follow through and execution. Furthermore, good managers must have endurance to tolerate challenges and setbacks while trying to forge ahead. All of these tasks must be executed with an understanding of how actions influence human behavior within, and external to, the organization. Among those skills are vision, leadership, and the ability to procure and mobilize financial and human resources. What does it mean to manage? Managing requires numerous skill sets. Managerial talent goes beyond just dealing with the problems at hand. While there is some truth to this characterization, it is perhaps more reflective of a “not so impressive” organization that is moving from one crisis to another. Chapter 24: Analytics for Managerial Decision MakingĪ sign hanging on the wall of a business establishment said: ”Managers are Paid to Manage - If There Were No Problems We Wouldn’t Need Managers.” This suggests that all organizations have problems, and it is management’s responsibility to deal with them.Chapter 23: Reporting to Support Managerial Decisions.Chapter 22: Tools for Enterprise Performance Evaluation.Chapter 21: Budgeting – Planning for Success.Chapter 20: Process Costing and Activity-Based Costing.Chapter 19: Job Costing and Modern Cost Management Systems.Chapter 18: Cost-Volume-Profit and Business Scalability.Chapter 17: Introduction to Managerial Accounting.Chapter 16: Financial Analysis and the Statement of Cash Flows.Chapter 15: Financial Reporting and Concepts.Chapter 14: Corporate Equity Accounting.Chapter 12: Current Liabilities and Employer Obligations.Chapter 11: Advanced PP&E Issues/Natural Resources/Intangibles.Chapter 10: Property, Plant, & Equipment.Chapter 6: Cash and Highly-Liquid Investments.Chapter 5: Special Issues for Merchants.Chapter 1: Welcome to the World of Accounting. ![]()
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