Corporate management performance evaluation – intuition and analytics.
Anton Sosenko
The article reviews analysis and decisionmaking practices in big successful companies known for established management systems, making the most of advanced accounting and report generation technologies. A case, where enterprise management system is essentially operational but top managements periodically run into poor performance in individual lines of business, is explored. In this case the company head has to evaluate effectiveness of the established management techniques, sometimes assuming stagnation or gradual obsolescence of company’s management system as a whole.
It is shown that modern record-keeping and management accounting systems are virtually useless for handling this type of tasks, and are generally ignored in decision making. Standard approaches practiced in Russia are described.
