During the Leverhulme Trustee Project, we conducted an intensive programme of project analysis, case studies and methodologies for improving organizational effectiveness. The research that we produced was used to implement a series of strategies for improving our processes. All of the concepts that we used came from theory-based work that we carried out at the undergraduate level. We took a close look at concepts such as control, measurement, organization, human resources, financial management, information systems and various management style models. My supervisors at the time were impressed with the depth of our research.
My supervisor was particularly impressed by the scope of our investigations into some major topics. This was evident in the amount of supplementary reading that we required to do, and in the number of additional units that we had to include in our coursework. I was particularly excited by the results of one module that we used for case studies. We used case studies from an early twenty-first century company as a case study for analysing the performance of the reorganization strategy that they implemented. We then compared this historical case study with the current case study. What we discovered was surprising.
Compared to the initial performance of their reorganization plan, the case studies performed by our participants achieved much higher levels of success than the company’s managers anticipated. This evidence suggested that their original attempts were not well informed or thought through. It also suggested that the key elements of the theory research (the case studies) held true for reorganization projects conducted in the present day. This evidence suggested that companies should consider using both financial and theory research as a planning tool.
The financial side of theory research is perhaps the most important. A financial statement provides the numbers. It tells a Company’s Financial Health relative to its goals and objectives. The key drivers behind those goals and objectives are the company’s long-term viability and the ability to attract and retain customers and employees. Financial statements also provide management with data on its current and forecasted assets, liabilities, revenues and expenses which are essential to ensure a successful run.
By conducting financial research into aspects of the Company’s management and operations, Theory researchers can discover ways to improve managerial efficiency. They can also discover areas of weakness in the Company’s management structure. This can provide the opportunity to improve the efficiency of the company at a lower cost and/or discover ways to increase company productivity. Finally, by improving company management the theory model can indicate where the Company’s management can make changes to their operations in order to increase organizational profitability and reduce company risk.
While all these areas are important, theory research alone cannot provide management with all the information they need to successfully run a business. In addition, it is unlikely that managers will be interested in all the topics that are being researched. Therefore, managerial accounting software or another form of product such as a book are required. Theory research does not provide management with every detail that is needed but it does show managers certain key areas to watch for and improve upon.
Many companies are turning to a different way to manage their businesses. Instead of trying to do everything by hand, they are trying to use managerial accounting programs. These programs allow companies to input data and then let them run specific models which provide them with the information that they need. This saves them time and money because instead of having to run their accounting manually, they can simply run a specific model and receive results instantly.