Today’s businesses are always more interconnected via various networks and platforms as society in general is experiencing a Digital Transformation, this digitalization exposes businesses to new opportunities but also new threats. As the way business is conducted changes, the figure of leaders that lead organizations through the business ecosystems need to change obtaining a range of skills, abilities and behavior in order to be successful as Digital Leaders. So a question arises: Who is a digital leader? Digital leaders can be found across the organization in the various levels, from operational levels as operational managers, division level as divisional or line managers, executive level as executives such as CEOs, CIOs, or Board levels. Digital leaders are the new leaders that guide, empower and inspire employees throughout all the organization in order to successfully achieve the planned objectives. This are the same old leadership trait but this are executed in a Continue reading
Modern Management Approaches
Change Kaleidoscope – Change Management Models
Due to growing of globalization, advance technology, and organizational consolidation, change is nowadays become a crucial part of every organization in order to survive in changing business environment. To handle the change, change management is required in transitioning for both organizational and individual level to attain future desired change. Change at organizational level is related to strategy which will indicate organizational direction and activities. In developing effective organization strategy, both internal and external environments have to be taken into consideration. When the strategy has been changed as adapting to changing internal and external environments, strategic change is necessity to be utilized in change management in order to align change with developed strategy. As individual change is pivotal part of organization change, change management need to be adopted at individual level in order to initiate the change and consequently obtain successful organization change. Change Kaleidoscope was produced by Hope Hailey & Continue reading
Organizational Innovation – Definition, Characteristics and Types
Organizational Innovation is a process of receiving and using new ideas to satisfy the stakeholders of an organization. It is the conversion of new knowledge into new products and services. Organizational Innovation is about creating value and increasing efficiency, and therefore growing business. It is a spark that keeps organizations and people moving ever onward and upward. “Without innovation, new products, new services, and new ways of doing business would never emerge, and most organizations would be forever stuck doing the same old things the same old way. “Innovation here is defined broadly, to include both improvements in technology and better methods or ways of doing things. It can be manifested in product changes, process changes, new approaches to marketing, new forms of distribution, and new conceptions of scope.” (Porter, 1990, p. 45) The term organizational innovations covers a wide spectrum of innovations; for example, it can mean innovations in Continue reading
Top Down Approach for Audit of Internal Controls
The purpose of using the top down approach for an audit of internal controls is to allow the auditor to take a systematic approach to identify risks and select which controls to test. The top down approach begins with the auditor forming a general understanding of the entity and the industry in which it operates. This is accomplished by looking at the company’s financial statements, and acquiring general business knowledge. The auditor then looks at the entity-level controls of the company to ensure that sufficient policies and procedures are implemented to recognize misstatements, due to error or fraud, in a timely manner so that material misstatements do not affect the financial statements. The two most important types of entity-level controls are those related to the control environment, and those over the period-end financial reporting process. Controls over the control environment should assess how management promotes ethical values and integrity, as Continue reading
Value Added Statements – Definition, Advantages and Disadvantages
Meaning and Definition of Value Added Statements The main thrust of financial accounting development in the recent decades has been in the area of `how’ we measure income rather than `whose’ income we measure. The common belief of the traditional accountants that profit is a reward of the proprietors has been considered as a very narrow definition of income. This was so because previously the assets were assumed to be owned by the proprietor and liabilities were thought as proprietor’s obligations. This notion of proprietorship was accepted and practiced so as long as the nature of business did not experience revolutionary changes. However, with the emergence of corporate entities and the legal recognition of the existence of business entities separate from the personal affairs and interest of the owners led to the rejection of proprietary theory. Value added is now reported in the financial statements of companies in the form Continue reading
DSMC/ATI Organizational Performance Improvement Model
Out of the organizational performance improvement planning process come specific performance improvement interventions, tactics and techniques. Note that these interventions happen at five checkpoints. Upstream systems, inputs, process, outputs and downstream systems. Quality management efforts must be defined relative to these five checkpoints. In effect, transformation and continuous improvement efforts are commitments to a practice of managing all five-quality checkpoints. The management team then develops, through the performance improvement planning process, a balanced attack to improve total system performance, not just system sub-components. After interventions are made to the system, measure, assess and analyze organizational performance at the five checkpoints to determine whether the expected impact actually occurred. Based on these data, make an evaluation relative to the business strategy, the environment (both internal and external), the vision, the plan and the improvement actions themselves. Note that the process of evaluation is separate from the process of measurement. In addition, Continue reading