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Barriers to customer‐oriented management accounting in financial services

Jørn Flohr Nielsen (Department of Management, School of Economics and Management, University of Aarhus, Denmark)
Per Nikolaj D. Bukh (Department of Management, School of Economics and Management, University of Aarhus, Denmark)
Niels Peter Mols (Department of Management, School of Economics and Management, University of Aarhus, Denmark)

International Journal of Service Industry Management

ISSN: 0956-4233

Article publication date: 1 August 2000

Abstract

In the retail financial sector competitive pressure seems to challenge traditional management accounting systems, which often do not allow the identification of profitable customer relationships. Drawing on a stage model and data from management accountants, branch managers and frontline employees in Danish financial service companies, this article investigates barriers to the implementation of customer‐oriented management accounting. The article documents how financial institutions are increasingly integrating management accounting systems with customer‐related activities thus enabling customer profitability analyses. However, several barriers related to organization structure, resources and attitudes hamper further customer‐oriented changes. Data gathered at the branch level strongly indicate problems of ownership and project sponsoring, and it is argued that new accounting systems may be less important to customer orientation than empowerment and goal‐oriented participation of the frontline employees.

Keywords

Citation

Flohr Nielsen, J., Nikolaj D. Bukh, P. and Mols, N.P. (2000), "Barriers to customer‐oriented management accounting in financial services", International Journal of Service Industry Management, Vol. 11 No. 3, pp. 269-286. https://doi.org/10.1108/09564230010340779

Publisher

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MCB UP Ltd

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