Monitoring makes things visible that are ordinarily invisible. The CEO might look across the organization at all goals, not just those aligned to a particular strategic objective. Any manager can view the progress being made on all the goals supporting his or her own goals. Furthermore, it is possible for managers and employees to see the entire goal landscape within the organization. Imagine the effect of this level of visibility on coordination and cooperation. It doesn't take a great leap of insight to realize that goals get achieved, or not. More specifically, they get achieved through people applying their skills, talents, knowledge, experience, and energy. Many companies develop competency models that specify more or less what the skills are that need to be applied in order to be successful in the organization, and even in a particular job. Usually mixed into the competency model are the values the organization.

Environmental influences on management accounting emerged in the mid 1990s that remain present today. These influences range from popularly embraced management philosophies to the fast emerging growth of electronic commerce and information technology. This alone has had a tremendous impact on the overall global economy and market. As electronic commerce matures, there are some obvious and subtle implications for the need of management accounting to develop new approaches to address the new paradigm. Production and distribution of products will continue; there is clear potential for diminished value added from retailers, and is clear that forward thinking brick and mortar sellers are at least establishing toeholds in cyberspace to meet the needs of a new class of consumer. Retailers that live completely virtually (Amazon and Dell Computers stand out; they are joined by others every day) have different overhead and fixed costs than those maintaining a storefront.

There are some clear markers for the origin of management accounting associated with significant shifts in markets and economic development that emerged during the Industrial Revolution. The earliest history of management accounting is embedded in the production goals of large, hierarchically organized single-product firms. The growth of this form of enterprise was spurred by advances in transportation and communication (specifically, telegraph and railroad) networks from the mid through the late nineteenth century.

Management accounting emerged as a product of the Industrial Revolution. Management accounting has roots in the capital-intensive, single-product enterprises (such as the railroad, steel and coal industries) that matured during the late nineteenth and early twentieth centuries. Milestones in the application of management accounting techniques are identified. These milestones include cost factors for capital investments, the development of scientific management, the birth of multi-product, multi-divisional enterprises, the emergence of mass retailing and the development of operations research. These milestones span the early twentieth century, the post World War II era, and the beginning of the Information Age. The continuing relevance of management accounting in the 'new economy' of the Information Age enterprises is addressed, as are recent management philosophies.

Companies try to keep a close watch on things happening in their external environments (both threats and opportunities) and on internal developments that might require them to adjust their strategic goals. Thus, the setting of strategic goals and subsequent alignment of supporting goals do not comprise a one-time event. Companies must be agile and their goal-driven performance management systems must enable them to quickly shift everyone in a new direction.

Some topics in this essay:
Johnson Kaplan, According Luft, War II, Du Pont, Management Association, Abstract Management, Nashville Railroad, Industrial Revolution, David Norton, Revolution Management, management accounting, johnson kaplan, return investment, du pont, world war, world war ii, kaplan 1987, war ii, goal alignment, performance management, johnson kaplan 1987, strategic goals, management accounting techniques, close watch happening, try close watch,