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Organizational innovation, leading change, customer service management in professional service firms.

Advanced undergraduate, MBA/executive education.

This case describes the human resource (HR) dilemma faced by BDO Hungary in 2010, an international audit and tax consulting partnership, operating in the country since 1989. In order to continue its past growth story and to reach closer to “Big Four” BDO has to enter new business segments, offer more services to its existing customers and seize higher value-added business potentials. The new strategy, however, is challenged by its incumbent, traditional core business: auditing, which is highly regulated by ethical, legal, and professional standards including non-advertisement regulations to which the resulting organizational culture and HR routines are congruent. The case is described from the perspective of the Equity Partner, HR Director and Executive MBA student, who is tasked with a new HR plan for training and development and is charged with implementing it successfully. How best to adjust current training and development policies to the best meet new strategic growth goals? How to develop existing human capital? How to make employees more commercially oriented in such a conservative, risk averse, and highly regulated environment? How to improve their customer service and the sales skill?

Exploring the importance of training and development in improving customer service levels in professional service firms operating in emerging markets. Understanding the limitations and the possibilities of transferring international HR policies and standards across borders and cultural differences.

Teaching notes.

Auditing, accounting, finance, control.

Upper level undergraduate, MBA, MS accounting.

This case takes an internal approach by exploring how PricewaterhouseCoopers - Egypt develops and applies industry specialization in an emerging market such as Egypt. The case focuses on three aspects of specialization. First, the strategic drivers behind specialization. Second, the internal processes of building industry-specific knowledge. Finally, the costs and benefits of specialization.

Industry specialization is a strategy:

• Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market.

Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market.

Industry specialization is a culture:

• For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries.

For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries.

Human resources are the most valuable asset of auditing firms:

• Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another.

Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another.

Teaching notes.

Winstar Communications was a successful and fast growing telecommunication company in the 1990s and early 2000s. However, in the early 2000s, the company started to struggle financially. In 2000, Grant Thornton audited Winstar, issuing an unqualified opinion. After Winstar went into bankruptcy in 2002, investors started to question the quality of the audit. This teaching case is based on the Gould v. Grant Thornton case that was tried in the United States Court of Appeals in 2011/2012. It provides accounting students with an opportunity to learn about auditing procedures and the consequences when auditing procedures are not correctly followed.

Teaching case study.

This case study is suitable for introductory undergraduate auditing, advanced undergraduate auditing and master level auditing courses.

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.

Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

The case describes the first four years of Dhruva, a tax advisory firm set up by Dinesh Kanabar, ex-Deputy CEO of KPMG. Dinesh and other founding partners had worked with the Big-4 firms and were familiar with some of the tensions in the overall ecosystem of Professional Services Firms. Dinesh wanted to build a distinctive professional service firm driven by values of cooperation, high quality work, transparency and stewardship. Very early in its journey, Dhruva's founding team decided that they would use organizational culture as the North Star for guiding decisions related to growth, internal organization design and even admission of new members including Partners. The first four years turned out to be highly successful for the firm. Since inception, it was ranked as Tier-1 firm in the tax advisory space. It was apparent that the firm had succeeded in building a model of alternate organizational paradigm for professional service firms. The next challenge was to test the scalability of this model as the firm embarked on an ambitious growth journey.

The case is appropriate for courses in financial accounting and reporting, audit and assurance, forensic accounting, accounting practice and regulations and corporate governance. After studying the case, students should be able to explain the concept of control and power under IFRS; explain the concept of economic; discuss audit committee and external auditor independence issues and ways to strengthen auditor’s independence; assess the usefulness of the new extended audit report; and evaluate the role of gatekeepers such as financial analysts, audit committee, external auditor, institutional investors and regulators in enhancing the quality of financial reporting.

This case focuses on the accounting policy choices of the foreign associates of AirAsia Berhad. AirAsia Berhad is a phenomenal success, from a debt laden company to having been voted as World’s Best Low-Cost Airline in the annual World Airline Survey by Skytrax for eight consecutive years from 2009 to 2016 and the World’s Leading Low-Cost Airline in the annual World Travel Awards for four consecutive years from 2013 to 2016. In June 2015, an analyst report was leaked, and it led to heated discussion and exchanges in the market. The report questioned the non-consolidation of AirAsia Berhad associates. The share market also reacted. Various players in the market came into foray with their statements and opinions on the merit of the accounting policy choice by AirAsia Berhad. Whose views actually reflect the nature of accounting policy choice that is true and fair? Are these gatekeepers attesting to the accounting crux of substance over form?

Senior undergraduates; MBA; EMBA

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 1: Accounting and Finance

Supply Chain Management, Technology, Procurement, Supply Chain Finance

The key learning objectives are as follows: to gain critical insights into e-commerce supply chains of fashion garments; understand the importance of digitization to manage the risks due to supply chain disruptions; evaluate the role of digitization to improve supply chain performance; understand the importance of supply chain finance in maintaining a healthy buyer–supplier relationship; and appreciate the role of supply chain digitization to transform a regional supply chain into a global supply chain.

This case highlights the challenges faced by fashion garments industry due to fragmented nature of their supply chains, where the manufacturing base was in the east and most of the consumers in the west. Digitization can create a bridge to integrate these supply chains to drive out their inefficiency, fragility and vulnerability to disruptions.

The case could be discussed in 90 min of an Operations Management, Supply Chain Management and Technology Management class at MBA or Executive MBA level.

Teaching notes are available for educators only.

CSS 9: Operations and Logistics.

Strategic marketing, Downturn, Optimal utilisation of minimal resources, Consolidating profitability, Focus shift from features to benefits and cost savings.

Management students who have knowledge of basic concepts of management discipline to derive the maximum benefit and understand the applicability; budding entrepreneurs; middle- and senior-level executives in an executive development program; people running family-owned businesses.

In 2008-2009, the Indian manufacturing sector was facing stiff competition from China on account of the latter's ability to provide cheap labour and handle large volumes. The 2008-2009 economic down turn saw consumers cut down on their requirements with manufacturing companies getting fewer orders. Manufacturing companies therefore adopted the principle of optimal utilisation of minimal resources. Millennium Company Ltd (MCL) also succeeded in overcoming the 2008-2009 downturns through a shift in focus during the recession of 2009 from achieving pure revenue to consolidating its profitability. MCL is probably the only company in the world to have extensive expertise in both steam and control instrumentation. The dual expertise allows them to engineer industry-specific systems that focus on energy efficiency and utilities management for sectors as diverse as textiles, food processing, paper, power and chemicals etc. The company shifted its attention from features to benefits, cost savings, and profitability. MCL trained its people as to what to talk to whom. Today, MCL is a leader in India in process efficiency and energy conservation through technology tie-ups and focused investments in manufacturing and research.

The purpose of this case is to enable student managers to evaluate effectiveness of corporate strategies; make the student managers understand the resources–businesses–systems framework and the need for focused connection between these three through appropriate coordination and control mechanisms for a corporate strategy to deliver value; encourage students to apply their knowledge of Turnkey Projects, BCG/Porters/SWOT/Mackensys Model; encourage the students to research and find out how other companies in this field fared and what were the strategies adopted by them to overcome the recession and compete with MCL in a highly competitive market like that of India; and encourage student managers to go on field visits with the institute's help to similar organisations within the same city and if possible get live projects.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Finance, accountancy, auditing.

Supports information systems audit (ISA), auditing practises and controls, corporate governance and internal controls and financial management modules, business administration and MBA programmes.

The case study focuses on the implementation of ISA and information technology in the highly responsible task of executing financial audits The case emphasises on the fact that the advantages of ISA can only be reaped when they are amalgamated with an auditor's scrutiny, sharp eye, extensive knowledge of auditing systems and accounting principles and a rich experience of the auditing function. The suggested synergy also facilitates a reduction of around 60 per cent, in the cost of executing the audits and the man-hours required to complete the audit, as in the case of Jain Chowdhary & Company.

The case helps students to comprehend the relevance of audit trail. It emphasises on the importance of identifying the source of information and tracking raw data backward. It familiarises the students with the complexities involved in a real audit and emphasises on the role of logic, intelligence, diligence, patience and farsightedness while performing the auditing function. It is important for them to understand how White collar crimes take place in real business economy. This case, hence exposes students to these nuances and can make a student, from a non-commerce background, understand the key elements of efficient auditing. (Elaborate teaching objectives are appended in the teaching note.)

Teaching note.

Undergraduate courses: Auditing, Leadership, Management accounting. Postgraduate courses: Leadership, Management accounting.

Auditing, Leadership, Management accounting

This case documents the journey of a professional accountancy organisation, namely, the Malaysian Institute of Accountants (MIA) and document the MIA’s journey on the establishment of digital blueprint for the accounting profession in Malaysia including some major milestone in innovating audit evidence-gathering technique by introducing e-confirm for auditing bank confirmation in Malaysia. This case highlights the significant role played by a lady chief executive officer (CEO) in embarking into the digitalisation of the accountancy profession and practice in Malaysia. While the ultimate objective of digital blueprint is to transform the accounting and auditing practices in Malaysia, the CEO has led by example by embedding digitalisation within MIA’s practices itself.

The learning outcome of this paper are as follows: to develop students’ understanding on the right attitudes, skills and characters that a successful leader should possess in contemporary business environment by focusing on dilemma and stereo-typing faced by women leaders; to develop the students’ understanding on the changes in business environment particularly the rise of digital technology that affecting the ways in which accounting functions in organisations; to encourage students to be aware that technical accounting knowledge is just one of the key success factors in the career of a professional accountant. The case offer insight into accountants’ role in digital environment and the development needed for accounting profession; to demonstrate how auditing process can benefit from the advancement in technology; and to encourage critical discussion on the development of accounting profession in Malaysia. The case aims to develop students’ critical discussion on the roles of MIA as a regulator of accounting profession and to appreciate historical development of accounting profession in Malaysia. The case also aims to encourage students to realise the existence of other professional accounting bodies, accounting practitioners and academic accountants, and together with MIA, they play significant role in shaping the accounting profession in Malaysia.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

The case has a strong implication on the role of effective leaders in ensuring that significant efforts involved in digitalisation journal, a vital need for the accountancy professional to continue to be a relevant profession, is a success.

CSS 1: Accounting and Finance.

Women leadership, Digitalisation, Professional accountancy organisation, Electronic bank confirmation, Malaysia