DYNAMICS of a NEW CURRICULUM

James E. Sorensen, Ph.D., CPASchool of Accountancy University of Denverjsorense@du.edu 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

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PR

INC

IPL

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Ind

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Qu

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ue

Un

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rsta

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Ca

tch

ba

ll

Fo

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s o

n p

roc

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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)