Performance Management Analytics - The Next Extension in Managerial Accounting

17 Pages Posted: 12 Aug 2010

See all articles by Riccardo Silvi

Riccardo Silvi

University of Bologna - Department of Management

Klaus Moeller

University of St. Gallen

Marten Schlaefke

University of Goettingen - Faculty of Economic Science

Date Written: August 10, 2010

Abstract

Hypercompetitive businesses are increasingly requiring the need for more rapid and sophisticated information and data analysis. This challenges management accounting’s role in effectively supporting the management decision making process. The emerging area of business analytics can potentially extend the domain of management accounting to the comprehension of business dynamics and provide more solid inputs for managing its performance. This paper introduces performance management analytics (PMA) as the next extension in management accounting research and practice. Specifically, it defines PMA as the understanding of relevant business dynamics through the use of data and analytical methods. In addition, it suggests PMA as a relevant part of performance management systems and moreover as the missing link between the existence of highly sophisticated performance management systems and their effective implementation. Furthermore, it provides a framework that incorporates a set of key components (input, process, output, outcome) where performance is grounded in its context, captured, coupled, and controlled. This framework might be useful for research and practice in the area of performance management. The relevance of performance analytics might be a predestinated subject for further empirical research in the field of the advances in management accounting with specific regards to performance management systems. If relevance and effectiveness of performance management analytics will arise, education on management accounting would have to be redesigned and integrated with performance analytical topics and new skills and competences on IT and analytical methods might be required for management accountants.

Keywords: performance management analytics, business analytics, performance measurement systems

JEL Classification: C67, M10, M40, L25

Suggested Citation

Silvi, Riccardo and Moeller, Klaus and Schlaefke, Marten, Performance Management Analytics - The Next Extension in Managerial Accounting (August 10, 2010). Available at SSRN: https://ssrn.com/abstract=1656486 or http://dx.doi.org/10.2139/ssrn.1656486

Riccardo Silvi (Contact Author)

University of Bologna - Department of Management ( email )

P.le della Vittoria, 15
Forli', Bologna 47100
Italy

Klaus Moeller

University of St. Gallen ( email )

Chair for Controlling/Performance Management
Tigerbergstrasse 9
St. Gallen, 9000
Switzerland
+41 71 224 74 06 (Phone)

HOME PAGE: http://www.aca.unisg.ch

Marten Schlaefke

University of Goettingen - Faculty of Economic Science ( email )

Gottingen, D-37073

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