Spreadsheets and the financial planning process: a case study of resistance to change

Douglas Howcroft

Journal of Accounting & Organizational Change, 2006, vol. 2, issue 3, 248-280

Abstract: Purpose - The purpose of this paper is to identify and explain the barriers that prevented the case study organisation, a UK manufacturing and R&D subsidiary of a European transnational company, from improving its spreadsheet‐based financial planning process. Design/methodology/approach - This is an insider action research case study, using qualitative semi‐structured interviews to ask accountants their opinions on budgeting and whether the present spreadsheet‐based budgeting system could be improved. In addition, a quantitative questionnaire was used to ask managers their views on whether budgeting was a help or a hindrance. Findings - Changes to the existing financial planning process were not implemented because they threatened to alter the existing distribution of power within the finance organisation. Research limitations/implications - The research project could not have proceeded into an implementation of change cycle due to financial constraints and because the manufacturing sites where the study took place were closed down. Further research into the organisational politics and culture of the case study organisation would have been an interesting challenge. Practical implications - Consistent with previous research that existing power distribution and organisation cultures may stifle creativity and be the cause of resistance, preventing changes to accounting systems being implemented. Originality/value - Why management systems are resistant to change has occupied researchers in recent times. However, there has been a dearth of action research on budgeting and financial planning, particularly insider action research. This paper contributes to the developing body of action research literature on management accounting systems.

Keywords: Management accounting; Organizational change; Organizational culture; Financial management; Spreadsheet programs (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:18325910610690081

DOI: 10.1108/18325910610690081

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