1. Strategic Management Accounting Chapter 23 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007 Hakan.kullven@indek.kth.se Additional material taken from “”Den nya ekonomistyrningen” (in swedish). Ax, Johansson & Kullvén. Liber (AJ&K)

2. Balanced Scorecard Figure 23.1 page 1002

3. Strategic maps Human capital Information capital Organizational capital Quality PriceTime Functio- nality Partner- ship Brand Productivity Value for the owners Increase in sales Product attributes RelationsImage Operative processes Customer processes Innovative processes Processes in the society Financial perspective Customer perspective Internal business processes Learning and growth AJ&K

4. Strategic themes Qualified employees Cooperation with the customer Optimal man planning Cross-cultural employment Leader in technology Product develop Sale of solutions Control of relations Just-In-Time Flexible production Contribute to development of the society Value for the money Reliable deliveries Competent partner Innovative products Sales increase Value for the owners Productivity Value offer to the customer Innovative processes Customer processes Operative processes ”A good citizen” Technology Human capital Financial perspective Customer perspective Internal business perspective Learning and growth perspective AJ&K

5. Example of theme Qualified employees Product develop Innovative products Sale increase Owners value Strategy map Balanced scorecardAction plan Objective Measure Target Strategic initiative Budget Financial perspective Customer perspective Internal process perspective Learning and growth perspective Sales increase by selling new products Satisfy customer needs with the latest developments Faster product development Change, develop and keep strategically important abilities Yearly sales increase % of sales from new products Re-sales Share of customer account First to market Time to market Availability of front knowledge Keeping key employees +25 % 30 % 80 % 40 % 75 % 9 mon 100 % 95 % - - - - Relationship marketing Rewards for customer account sales Industry exhibit JIT project Development program Employee program Management development Employee bonus plan £AAA £BBB £CCC £DDD £EEE £FFF £GGG £HHH AJ&K

6. Next, we… will summarize the course, cover some parts not covered earlier, and discuss the seminar reports. Questions can be asked and the homework assignment will be handed out