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Examining The Quantified Customer Impact on Organizational Management Accounting

This paper explores how the introduction of quantified knowledge affects organizations, focusing on the concept of The Customer and its implications for organizational action and management accounting. It discusses the changing role of The Customer in modern organizations, the impact on management accounting, and the importance of aligning operations with customer demands. The case study delves into the formation of a calculable space in the name of The Customer and the effects of the Quantified Customer on organizational activities and power structures. The paper also addresses challenges and opportunities posed by quantifying customer data and the implications for organizational structure and activities.

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Examining The Quantified Customer Impact on Organizational Management Accounting

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  1. Examining ”TheQuantifiedCustomer” Strategic Management Accounting 30.9.2014 Group 15: Matias Jäntti, Olli Leikkonen, Juha-Pekka Niittymaa

  2. Objectives of thispaper? • To conceptionalizethrough a descriptive case study: • How introduction of quantifiedknowledgeaffectsthe case organization • How a calculablespacein thename of TheCustomer is formed • What is QuantifiedCustomer’seffect on organizational action & itsimplications • QuantifiedCustomer’seffect on therole of management accounting

  3. Background - The role of The Customer in modern organizations • In modern organizations, the concept of The Customer is gaining importance • It is considered essential to fit The Customer & operations together • Trying to meet The Customer’s demands affects: • Organizational processes • Organizational structures • Management techniques

  4. Background - The Customer & the role of management accounting • How the growing presence of The Customer affects MA? • New perspective: • Forming a link between The Customer & organizational activities • New measures: • Non-financial • Customer-focused

  5. TheCustomer in modernorganizations Changingrole of management accounting CS Quantitative Knowledge CS CS CS CS Calculablespace in thename of TheCustomer CS TheQuantifiedCustomer

  6. Vagueness Ad-hoc approaches Disorganized activities I Z N A Externalcustomer Externalcustomer A Incorrectinvoicing T TheQuantifiedCustomer Poorfieldservice G I R O N O Product performance Misseddeliveries Externalcustomer Externalcustomer Co-operation, standardization, harmonization Formalizedorganizationalmemory Systematicmeasurement Precision

  7. Case organization • LI-UK • Chemicals business • Part of Unilever • Complexity of environment • Diverse operations • Heterogeneous customer base

  8. CSS –Customer service summary • Monthly management report to complement financial measures • Monitoring activities and functions that are critical in terms of customer satisfaction • Commercial initiative • Cross-functional team • Customer Service Meeting • Sales managers usually not present

  9. Implications of The Quantified Customer • Systematically organized actions instead of ”ad-hoc” solutions • Medium against organizational rumors • Enhanced organizational memory (trends, performance…) • Reshaped power structures • Collision of interests • Too formalized information  difficult to serve individual customers • Measuring for measuring  unpractical and based on history

  10. Events & implications in the case organization CSS MEETINGS IMPROVEMENT SYSTEMATIC QUANTIFICATION REORGANIZATION ORGANIZATIONAL RESISTANCE RIVALRY COLLIDING KNOWLEDGE THE SPECIFICS

  11. Recap • The Quantified Customer • Changed the role of MA & brought it closer to the customer • Transformed organizational power relations • Faced resistance & competing knowledge • Caused changes in organizational structure & activities

  12. Le Critique • Difficult to grasp • Imbalance between theory and case description • Inadequatedefinitionsof themain concepts • Lack of linkagebetweenfindings and theory • How doesthispapercontribute to MA research? • Findings are confined to the specific site • Just a recreation of already existing concept?

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