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

2009; Emerald Publishing Limited; Volume: 5; Issue: 2 Linguagem: Inglês

10.1108/18325910910963418

1839-5473

Shahid L. Ansari, Jan Bell,

Management Theory and Practice

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.