Five easy pieces: a case study of cost management as organizational change

Shahid Ansari and Jan Bell

Journal of Accounting & Organizational Change, 2009, vol. 5, issue 2, 139-167

Abstract: Purpose - The primary purpose of this paper is to merge two traditions in management accounting change – design theory and action research – to explain findings from a case study of introducing a cost leadership initiative. Design/methodology/approach - This paper is an example of action research in which design theory explains events related to the implementation of a strategic cost leadership initiative at Shell Gabon, a Royal Dutch Shell unit in West Africa. Findings - The evidence shows that technical accounting changes are, in the final analysis, change management exercises. Implementing change requires thinking as a designer and employing the logic of conjecture rather than scientific deductive or inductive reasoning. Successful implementation requires conjuring an image of a future reality that does not currently exist and making that image persuasive by connecting it with the values of the organizational participants. Research limitations/implications - This case study provides five key lessons for future designers of accounting change. Implementers should: understand the mental models of organizational participants; show respect for the cultural values of the organization they are working in; meaningfully engage organizational participants; use structured processes to unfold change; and be ready to seize new opportunities and discard old game plans when necessary. The case study also reveals gaps in existing change management models and behavioural accounting theories. Originality/value - This paper offers design theory as an alternative way of viewing organizational change and offers criteria for evaluating the use of design as a process and for assessing the value of the implemented change.

Keywords: Accounting; Action research; Cost accounting; Organizational change; Oil industry; West Africa (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:18325910910963418

DOI: 10.1108/18325910910963418

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