Page 2

Key findings: • Focus on a company’s separate profit centres, discrete transactions and monthly budget achievement indicates it has a short-term orientation. • Profitability arises over the long-term ‘customer life cycle’. So managers and salespeople need to have lengthened time frames, redefined conceptions of effective performance and a focus on long lasting customer relationships. • Building and maintaining long lasting customer relationships requires information gathering and use in a systematic process that can be measured. • Changing the behaviour of employees to match these requirements involves challenging existing practices, attitudes and methods of communication. • Performance indicators during the change should focus on both the process and the results, and employees and managers need to be trained in their use.

Using management accounting to lengthen the time frame of managers  

Most of the criticism of traditional management accounting and control concerns its short-term orientation. The Netherlands, in contrast w...