Strategic Management Accounting

Chapter 23

ME 2027 Performance and Cost Analysis

ME 2605 Cost Management and Control (for IMIM)

Håkan Kullvén, KTH, 2007

Hakan.kullven@indek.kth.se

Additional material taken from“”Den nya ekonomistyrningen”(in swedish). Ax, Johansson &Kullvén. Liber (AJ&K)

Balanced ScorecardFigure 23.1 page 1002

Strategic maps

Humancapital

Informationcapital

Organizationalcapital

QualityPrice TimeFunctio-

nalityPartner-

shipBrand

Productivity

Value forthe owners

Increase insales

Product attributes Relations Image

Operativeprocesses

Customerprocesses

Innovativeprocesses

Processesin the

society

Financial perspective

Customer perspective

Internal business processes

Learning and growth

AJ&K

Strategic themes

Qualifiedemployees

Cooperation withthe customer

Optimal manplanning

Cross-culturalemployment

Leader intechnology

Productdevelop

Sale ofsolutions

Control ofrelations

Just-In-TimeFlexible

production

Contribute todevelopment of

the society

Value forthe money

Reliabledeliveries

Competentpartner

Innovativeproducts

Sales increase

Value for theowners

Productivity

Value offer to the customer

Innovative processes Customer processes Operative processes ”A goodcitizen”

Technology

Human capital

Financialperspective

Customerperspective

Internalbusinessperspective

Learning andgrowthperspective

AJ&K

Example of theme

Qualifiedemployees

Productdevelop

Innovativeproducts

Sale increase

Owners value

Strategy mapBalanced scorecard Action plan

Objective Measure Target Strategicinitiative

Budget

Financialperspective

Customerperspective

Internal processperspective

Learning andgrowthperspective

Sales increase byselling newproducts

Satisfy customerneeds with thelatestdevelopments

Faster productdevelopment

Change, developand keepstrategicallyimportantabilities

Yearly salesincrease

% of sales fromnew products

Re-sales

Share of customeraccount

First to market

Time to market

Availability offront knowledge

Keeping keyemployees

+25 %

30 %

80 %

40 %

75 %

9 mon

100 %

95 %

-

-

-

-

RelationshipmarketingRewards forcustomer accountsales

Industryexhibit

JIT project

DevelopmentprogramEmployeeprogram

ManagementdevelopmentEmployee bonusplan

£AAA

£BBB

£CCC

£DDD

£EEE

£FFF

£GGG

£HHH

AJ&K

Next, we…

will summarize the course, cover

some parts not covered earlier,

and discuss the seminar reports.

Questions can be asked and the

homework assignment will be

handed out