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

Abstract

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.

Citation

Ansari, S. and Bell, J. (2009), "Five easy pieces: a case study of cost management as organizational change", Journal of Accounting & Organizational Change, Vol. 5 No. 2, pp. 139-167. https://doi.org/10.1108/18325910910963418