Breaking new frontiers in management accounting research: the CMA Canada Research Foundation will expand the conceptual boundaries of management accounting and create value-added knowledge management materials.

The CMA Canada Research Foundation, re-established by CMA Canada's National Board of Directors, will generate leading-edge research aimed at CMAs, other strategic financial management professionals, the business community, and prospective members in educational institutions.

The Foundation will expand the conceptual boundaries of management accounting by encompassing new developments and practices that may affect the professional accountant in business. It will also create relevant knowledge management materials that will either create or add value for CMAs and other professional accountants in their roles in business.

"It's vital that we are, and are seen to be, the accounting organization that drives continuous development of management accounting, and the organization that shapes strategic leadership in our members," said Ron Stoesz, Chair of CMA Canada's National Board of Directors. "The Foundation will help us maintain that standing."

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The research foundation is part of CMA Canada's thrust to dedicate expanded resources to management accounting research to foster the development of innovative management accounting tools and techniques, build member competencies, and reinforce CMA Canada's leadership role in the management accounting territory.

"Interest in management accounting research is growing as organizations look for ways to enhance capabilities in areas such as strategic performance measurement, risk management, corporate governance, strategic cost management and internal control," said Steve Vieweg, President and CEO of CMA Canada. "We want to be able to offer the best, most informed research possible on best practices in these areas."

Guideline growth

CMA Canada currently has a library of 57 Management Accounting Guidelines and 45 Management Accounting Standards. The guidelines look at a management accounting issue from a strategic and management perspective, identifying new issues and the ways leading-edge organizations are adopting new practices. The standards focus on narrowly defined topics in three overarching categories--cost finding, cost using and strategic management control.

The newest addition to CMA Canada's knowledge management library is an innovative management guideline on Identifying, Measuring and Managing Organizational Risk for Improved Performance. Produced in conjunction with the American Institute of Certified Public Accountants (AICPA), the guideline is designed to help both public and private sector organizations manage risk.

"This new guideline presents a selection of performance measures to properly identify, measure, manage, and report risks," said Richard Benn, Vice President of Program Development for CMA Canada. "The risk-management model described in the guideline demonstrates that improved risk measurement and management produces organization-wide benefits, such as enhanced working conditions, allocation of resources to the risks that really matter, and sustained or improved corporate reputation. These outcomes help an organization prevent loss, achieve performance targets, and increase shareholder value."

CMA Canada's risk management guideline is designed specifically for boards of directors, members of audit committees, chief executive officers (CEOs) and chief financial officers (CFOs) with increased responsibilities, senior management teams, and accounting, internal audit, and finance professionals who face the challenges of risk assessment, analysis, and control. The guideline is also aimed at external auditors who must attest to, and report on, internal control over financial reporting.

CMA Canada has made the new guideline available to the federal government to help develop a framework that helps public servants measure and manage risks while facilitating practices that ensure accountability and optimum service for Canadians.

During the past year, CMA Canada also published a new guideline on Evaluating Performance in Information Technology. Also produced jointly with the AICPA, the new guideline presents an invaluable resource to help organizations measure the return on investment in their IT systems.

"In addition, we are now working on five new Management Accounting Standards on database management systems, enterprise resource management systems, managing organizational change, supply chain management and managing intellectual capital," noted Benn.

CMA Canada is also participating in an international library research project through IFAC's Public Accountants in Business (PAIB) Committee. The library will provide the IFAC membership with access to CMA Canada knowledge management publications.

University outreach

CMA Canada's management accounting research programs are supported through partnerships with leading universities. Work continues at CMA Canada's Centre of Excellence in Management Accounting for Small and Medium-Sized Enterprises, which is based at Wilfrid Laurier University in Ontario.

"Through interaction between small and medium-sized enterprises, management accountants and university faculty, the centre is significantly expanding the body of knowledge on management accounting techniques, best practices and skills development for entrepreneurs and small business managers," said Steve Vieweg.

Similarly, the CMA Centre for Strategic Change and Performance Measurement at Simon Fraser University in British Columbia is generating new knowledge related to three themes: strategic change and its execution, strategic performance measurement, and leadership and change management. The Centre has already held one workshop for the Canadian business community. Another workshop is now being considered.

Work also continues at the CMA International Centre for Studies of Business Processes, located at The Ecole des Hautes Etudes Commerciales (HEC) in Quebec. The centre researches, analyzes and communicates contemporary and emerging best practices with respect to business processes internationally, as well as promotes better performance by participating companies.

"The CMA International Centre is currently conducting revolutionary research on the role of management accountants in business," said Vieweg. "The research results will provide CMA Canada and other management accounting organizations with valuable information concerning the unique contribution our members provide to business success."

CMA Canada is also expanding its program with Athabasca University to provide CMAs with enhanced access to Athabasca's executive MBA programs. These MBA programs provide our members with an opportunity to hone and expand skills in managing strategy, information, people, resources, markets and operations. This enables them to quickly earn an internationally recognized post-graduate business degree by receiving advanced standing and transfer credit in course areas related to CMA expertise.

Athabasca's executive MBA was launched in 1994 as the world's first online MBA. It has grown to become Canada's largest executive MBA with more than 1,100 students representing Canada's top 20 companies and 400 companies world-wide.

"The university's innovative approach to providing graduate management education is proving highly attractive to CMAs, both in Canada and abroad," said Vieweg.

CMA Canada has also established specialized online management development courses with Athabasca University tailored specifically to meet the needs of CMAs. Courses cover topics such as leadership development, organizational change management, coaching, knowledge management practices, and supply chain technologies.

"With the continued development of strategic partnerships, and the expansion of our knowledge resources, CMA Canada will be able to maintain and further develop its international pre-eminence in management accounting expertise," said Vieweg.