Management expertise is required for successful navigation through financial crises. Among some of the recent trends in management during such crises are analyzed in this paper, specifically their application in different institutions. These include cost mitigation, movement from product to channel and customer profitability analysis, managing information technology and other services as a business and shifting towards predictive accounting (Cokins, 2013).
The first trend, which involves expanding to customer profitability analysis, requires that organizations evolve from the common reporting on product and service-line profitability to reporting on customer profitability data, taking to account various aspects such as demand by customers, consumption expenses and feedback from the customer base (Cokins, 2013). This would be important in establishing such patterns as demand behavior among others and in the long run would reduce the cost of marketing and relieve the organization of the human resource involved in marketing.
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The second trend, which involves managing information technology and other services as a business, requires that organizations shift their focus into managing their telecommunication equipment and services such as e-commerce services as if they were actual businesses, taking to account the returns they generate compared to the capital invested in them (Cokins, 2013). In recent times, it is essential to keep up with emerging trends in technology in terms of e-business. Hence, efficacy in the telecommunication techniques would absolve organizations of the extra human resource that has become a liability.
Finally, it would be essential for organizations to take to account the aspect of predictive accounting that involves analyzing the unused fixed and variable aspects of the organization, taking to account both the unavoidable and adjustable fiscal aspects while carrying out financial analysis (Cokins, 2013). It is a move away from the tradition descriptive analysis and enables the organization to establish its position and account for future hurdles, especially in the prevailing financial crisis.
References
Cokins, G. (2013). Top 7 trends in management accounting. Strategic Finance, 95(6) , 21-30.
