This Statement on Management Accounting (SMA) is designed for today’s management accounting and financial professionals seeking to engage in strategic planning, analysis, and execution. It provides key ways management accountants and CFOs can add value to the strategic analysis and planning process.
Traditional strategic analysis tools, methods, and frameworks are covered such as 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
Case examples of companies achieving sustainable high performance illustrate the power of developing a connection and alignment between the strategy, strategy execution, budget, and financial performance.