The role of management accountants to facilitate sustainable business success in big Lesotho companies

Abstract

Companies today are strongly motivated and intend to be the leading ones in their area of business, as they are seen to be busy trying to build new competencies and capabilities so that they become competitive and grow profitably to sustain successful businesses. No one can overlook the fact that hard work is required in order to achieve ultimate success in business. However, it can also not be denied that there are challenges along the way, as - due to factors such as globalisation - managing business and organisations in this era is not as simple as it was in the past. The problem of this study is based on the statement that management accounting is more than what most managers perceive it to be. It is more than just costing of products and services, but includes both financial and business expertise and an understanding of how departments of the organisation have to unite and work together for effective decisions to be made within the organisation. The main purpose of conducting this study was to determine whether boards and top-management of big companies in Lesotho appreciate and understand the role of management accountants as facilitators and supporters for successful strategic and operational decision making, with regard to the components of the CIMA business success wheel. As a way of trying to achieve the above purpose, a literature review of the attributes of the CIMA business success wheel, as well as the role of management accountants about how they facilitate sustainable business success, was conducted. Moreover, an empirical study was also done. In order to try and answer why businesses suffer and do not become successful, this study tried to develop a model to assist the board and top management of big companies in Lesotho on how to achieve sustainable business success. The development of the model came about as a result of the findings and results of the empirical study and the literature review. This model was furthermore brought about by using qualitative and quantitative research designs which are known to be resourceful in research. Qualitative findings from the 3 interviews with the executives of companies were supported by self-administered questionnaires completed by 18 companies considered big in Lesotho. Findings from the empirical study confirmed that top management and the boards of big companies in Lesotho are indeed not aware of the roles of management accountants and how they can be of assistance in facilitating success in their businesses. Participants and respondents pressed more on the management accountant’s role in planning in terms of budgeting and monitoring of execution of company funds, which is the financial expertise rather than the business acumen part. It was even found that the majority of the companies did not have the office of a management accountant. As a result, recommendations to the boards and top management of companies regarding the importance of a management accountant in organisations, as well as recommendations for further research by other researchers in this respect, were provided. Although the research was only limited to available big companies in Lesotho, it is the hope of the researcher that the study would bring change to how top management and boards of also medium and small companies, also internationally, perceive the role of management accountants, and that it would also be of value to such companies and other stakeholders