Lukas Goretzki

Coordination under uncertainty A sensemaking perspective on cross-functional planning meetings

Purpose - This paper aims to examine how managers use planning meetings to coordinate their actions in light of an uncertain future. Existing literature suggests that coordination under uncertainty requires a “dynamic” approach to planning, which is often realized in the form of rolling forecasts and frequent cross-functional exchange. Not so much is known, however, about the micro-level process through which coordination is achieved. This paper suggests that a sensemaking perspective and a focus on “planning talk” are particularly helpful to understand how actors come to a shared understanding of an uncertain future, based upon which they can coordinate their actions. Design/methodology/approach - This paper builds upon a qualitative case study in the Austrian production site of an international manufacturing company. Drawing on a sensemaking perspective, the paper analyses monthly held “planning meetings” in which sales and production managers discuss sales forecasts for the coming months and talk about how to align demand and supply. Findings - The authors show how collective sensemaking unfolds in planning meetings and highlight the role that “plausibilization” of expectations, “calculative reasoning” and “filtering” of information play in this process. This case analysis also sheds light on the challenges that such a sensemaking process may be subject to. In particular, this paper finds that competing hierarchical accountabilities may influence the collective sensemaking process and render coordination more challenging. Originality/value - The paper contributes to the hitherto limited management accounting and control literature on operational planning, especially its coordination function. It also extends the management accounting and control literature that draws on the concept of sensemaking. The study shows how actors involved in planning meetings create a common understanding of the current and future situation and what sensemaking mechanisms facilitate this process. In this respect, this paper is particularly interested in the role that accounting and other types of numbers can play in this context. Furthermore, it theorizes on the conditions that allow managers to overcome concerns with hierarchical accountabilities and enact socializing forms of accountability, which is often necessary to come to agreements on actions to be taken.

Exploring the Persuasiveness of Accounting Numbers in the Framing of ‘Performance’ – A Micro-Level Analysis of Performance Review Meetings

Abstract Based on a micro-level analysis of performance review meetings and drawing on an interactional framing perspective, this paper analyses the role of accounting numbers as ‘framing devices’ in discussions about performance. Analyzing interactions between superiors and subordinates, we examine how and why these two groups of actors mobilize different accounting numbers to make claims about performance and try to persuade the other party. Our interest is with the choice of accounting numbers and how they come to be seen as persuasive. The main theoretical argument developed in this paper is that whether a specific accounting number or indicator comes to be seen as persuasive or not in a particular situation is both a matter of how legitimate the underlying indicator is to the actors involved as well as whether they regard the signal it provides, i.e. the actual outcome on this particular indicator, as salient when compared to the actual outcomes on alternative indicators. Taken together, our findings suggest that persuasiveness is not an ‘objective’ quality of accounting numbers, but a situated achievement that results from interactive alignments between different actors with potentially competing interests.

Controllers’ use of informational tactics

Controllers typically have a ‘dual accountability’ towards the finance function and operational management, respectively. This dual accountability at times confronts them with conflicting expectations. In this paper, we suggest that ‘informational tactics’ constitute an important resource which controllers rely on so as to handle these expectations and to successfully present themselves vis-à-vis their different internal stakeholders. Drawing upon interview data, we demonstrate that informational tactics relate to different dimensions of information control (i.e. ‘when’, ‘how’ and ‘what’ information is to be exchanged) and that they depend on the respective room for manoeuvre a controller has in a given situation. Overall, our analysis adds a more nuanced picture to the literature on controllers’ handling of information and demonstrates the fundamental role of informational tactics for their everyday work.

How management accountants exert influence on managers – a micro-level analysis of management accountants’ influence tactics in budgetary control meetings

Purpose This paper aims to examine how remote (i.e. global, regional or divisional) management accountants communicate in interpersonal contacts with operational managers when trying to exert influence on them. Design/methodology/approach An ethnographic field study focusing on budgetary control meetings between regional management accountants and operational managers is used as the basis for a micro-level analysis of situated face-to-face interactions and communicative influence tactics. Findings Remote management accountants mainly use soft rather than hard influence tactics. They, furthermore, employ what is referred to as “panoramic knowledge” gained explicitly from their structurally as well as physically removed “meta-positioning” to suggest certain measures to operational managers that have proved successful in other units and – by doing so – try to exert influence on these managers. Moreover, they use information that they gain in their position in between senior and operational managers by acting as “double agents” – that is, informing operational managers about senior managers’ focus as well as making transparent to operational managers that they will inform senior management about specific operational matters. By doing so, they try to prompt operational managers to address these issues. Additionally, strengthening their verbally articulated suggestions, as “minute takers” they are able to document their suggestions by moving from spoken to a more binding written text. Through these purposeful and rather unobtrusive tactics, remote management accountants try to take influence on operational managers without generating their resistance. Originality/value The paper shows how remote management accountants (as staff members) can skillfully turn their apparently powerless position within the organization into a source of strength to exert influence on operational managers.