Characteristics of the Strategic Planning Process and the Relevance of Management Accounting: Evidence from German Dax30 Companies

34 Pages Posted: 31 Jul 2007

See all articles by Pascal Nevries

Pascal Nevries

University of Witten/Herdecke

Timo Kornetzki

University of Dortmund - Chair of Accounting and Management Control

Gonn K. Weide

WHU Otto Beisheim Graduate School of Management

Date Written: 2006

Abstract

Corporate strategies often evolve from a complex and extensive corporate-wide planning process. Many stakeholders of the company are involved in this process, for instance corporate management, strategists, or business unit managers. So far, no paper that we are aware of has analysed the characteristics of the strategy process in connection with the role of management accountants in the strategy process. Therefore, it is the purpose of this paper to analyse if management accountants support, participate in and influence the strategic planning process and how they do it. A cross-sectional field study was undertaken to answer this research question, in which we interviewed 29 top management executives in 11 company groups in Germany. We found differing roles and intensities of management accountants' participation and influence in the planning process depending on the specific corporate context. Furthermore we divided the process into four phases: strategic analysis, strategy conception, strategy implementation, and control phase. By conducting a detailed examination of the characteristics of the corporate strategy process, including relevant participants, structure of information flows, or formal framework we were able to differentiate three different types of strategy processes: type one with only minor moderating management accounting participation; type two with major management accounting participation in later strategy process phases; and type three with a strong emphasis of management accounting on the control phase at the end of the strategy process. Depending on the process type management accountants have different formal tasks and objectives and therefore use varying tool sets, ranging from traditional cost accounting to general management instruments like portfolio analysis.

Keywords: strategy process, strategic management accounting

JEL Classification: M40

Suggested Citation

Nevries, Pascal and Kornetzki, Timo and Weide, Gonn K., Characteristics of the Strategic Planning Process and the Relevance of Management Accounting: Evidence from German Dax30 Companies (2006). AAA 2008 MAS Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1004091 or http://dx.doi.org/10.2139/ssrn.1004091

Pascal Nevries

University of Witten/Herdecke ( email )

Alfred-Herrhausen-Stra├če 50
Witten, 58448
Germany

Timo Kornetzki (Contact Author)

University of Dortmund - Chair of Accounting and Management Control ( email )

Dortmund
Germany
+492317554378 (Phone)

HOME PAGE: http://www.wiso.uni-dortmund.de/uc/de/

Gonn K. Weide

WHU Otto Beisheim Graduate School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,060
Abstract Views
9,040
rank
26,605
PlumX Metrics