A newly released report by IMA® (Institute of Management Accountants), titled “Strategic Analysis – Methods for Achieving Superior and Sustainable Performance,” provides insights into ways management accountants and CFOs can lead strategic analysis and planning processes to achieve superior and sustainable performance. The 42-page Statement on Management Accounting (SMA) is part of IMA’s effort to provide tools and resources for accounting professionals to upskill and increase their competitive value.
“The COVID-19 crisis has added a whole new level of momentum to the ever-increasing complexity, volatility, uncertainty, and pace of change and competition in today’s global marketplace,” said Kip Krumwiede, Ph.D., CMA, CSCA, CPA, IMA director of research and coauthor of the SMA. “This is an especially good time for management accountants to build their skillset in the strategic analysis process.”
The SMA describes leading strategic analysis tools, methods, and frameworks such as Michael Porter’s Five Forces and SWOT analysis, as well as more recent developments such as Blue Ocean Strategy, Good to Great, creating shared value, disruptive innovation, Return Driven Strategy, reverse innovation, and strategic risk management. They are organized into three types:
- Environmental scan and competitive analysis
- Internal and external analysis
- Innovation, change, and market disruption
“The overall objective of this SMA is to emphasize the importance of developing alignment between strategy, strategy execution, and financial performance,” said Mark L. Frigo, Ph.D., CMA, CPA, professor emeritus at DePaul University and coauthor of the SMA. “These methods and tools can help organizations become more strategic and create greater long-term sustainable value for shareholders and stakeholders.”
The report also includes case examples of companies like Apple, Netflix, and The Lego Group on how they achieved sustainable high performance and developed alignment between strategy and financial performance.
The skills described in the SMA align closely with IMA’s CSCA® (Certified in Strategy and Competitive Analysis) certification, a program for CMAs that complements and expands upon the strategic planning and analysis skills developed through the CMA® (Certified Management Accountant) certification.
Learn more about the new SMA, “Strategic Analysis—Methods for Achieving Superior and Sustainable Value,” on the IMA website. And to find out more about IMA’s other research activities, please visit the Research and Publications webpage.