Purpose - This paper seeks to elaborate on how facts and feelings can be engaged in management accounting (MA) practice. The paper discusses a blueprint of new MA to be used in value and profitability management. The need for such a blueprint is defined in the following way: What does the interaction between facts and feelings mean for managing customer value and profitability, and how such interaction can be established? Such a blueprint ought to be at least widely and emotionally desirable, ergonomic and effective, durable and repairable, which have not been sufficiently addressed as design characteristics in the MA literature.
Design/methodology/approach - Besides a literature review on the processes of co-thinking and co-feeling in management accounting literature, we propose a more detailed approach for identifying the needs for accounting development and responding to them with a relation to the aforementioned challenges. In practice, we identify timely management challenges in different case environments, ranging from industrial operations to health care services. After that, we elaborate on the desired role of MA practice in responding to the identified challenges, as a basis for the proposed blueprint of new MA.
Originality/value - The paper is among the rare attempts to extend the theory and practice of management accounting with an approach that combines both analytical and emotional aspects of value and profitability management. The paper provides both a description of the needs for accounting development in different environments and an aggregate level agenda for turning such blueprint into action, i.e., the blueprint of new MA. Moreover, the paper responds to the need for better supporting managerial work by means of accounting information, with an explicit connection to the processes of value and profitability management in the companies.
Practical implications - The research gap underlying this paper is closely connected to the needs for developing management accounting practice according to the timely management challenges and recent technological advancements. After reading this paper, practitioners will be able to identify the needs for accounting development in their organizations, and translate the blueprint of new management accounting into a set of practical questions related to their own business context.
|Title of host publication||IFKAD 2015: 10TH INTERNATIONAL FORUM ON KNOWLEDGE ASSET DYNAMICS|
|Editors||JC Spender, G Schiuma, Albino|
|Number of pages||11|
|Publication status||Published - 2015|
|MoE publication type||A4 Article in a conference publication|
|Event||International Forum on Knowledge Asset Dynamics - Bari, Italy|
Duration: 10 Jun 2015 → 12 Jun 2015
Conference number: 10
|Conference||International Forum on Knowledge Asset Dynamics|
|Period||10/06/2015 → 12/06/2015|
- Management Accounting Practice
- Value and Profitability Management
- Facts and feelings
- REFLECTIVE PRACTICE