Managerial Accounting – Sessions 7 & 8
The final two sessions of Managerial Accounting shifted the focus from accounting to managerial control, centralisation vs. decentralisation, and performance metrics.
During the sessions we discussed four different cases:
- Iceland’s Landsbanki: exploring the actions a new CEO can take over after a complete collapse of banking system in Iceland.
- Codman and Shurtleff: Understanding decentralisation, and management control.
- Nucor Corporation: Advantages of running a “knowledge-driven” orgranisation, various compensation structures, and first-mover advantage.management, importance of having a strategy map.
These sessions also touched up on the leadership skills of different companies and what kind of measurements help in executing a successful strategy.
Implementing change poses a big challenge for leaders and in the final session we discussed a bit about the 8-step process for leading a successful change:
- Establish a Sense of Urgency.
- Form a Powerful Guiding Coalition.
- Create the Vision for Change and a Strategy for Achieving It.
- Communicate the Vision and Strategy.
- Empower Others to Act on the Vision and Strategy.
- Produce Short-Term Wins.
- Sustain the Effort: Produce Still More Change.
- Institutionalize the New Culture.
These sessions concluded the Managerial Accounting course and for the final examination we need to submit a managerial report with presentation for a company. The report needed to identify the key issues and provide solutions for implementing change at a delivery service company.
Managerial Economics – Sessions 1 & 2
During this weekend (April 15/16) we had our first two sessions of Managerial Economics by Prof. Barry Standish from South Africa. Before the sessions started we finished the Micro Economics online session, which gave me some idea of basic economics.
The course focuses on making us understand the importance of the environment in which the businesses operate by focusing on macro economics of the world. The first two sessions we discussed various fundamentals like Business Cycles, Wealth Effects, understanding where the money comes and what properties an exchange medium should have for it to act as “good money” viz., Portability, Durability, Divisibility.
We also spend time in understanding the history of money from the gold standard of 1930s to modern Bretton Woods/Dollar Standard.
During the second session Prof. Barry gave us some intuition about the Quantity Theory of Money which can be described using the equation:
M * V = P * Q
M = Money
V = Speed of Circulation
P = Price of things
Q = Quantity of things