Preparing business managers for the paradigm shift

In upswing economies:

There are plenty of indications that the economy is shifting into higher gear and they are not just buried in economists' models and spreadsheets, but evident in the day-to-day decisions consumers and business folks make, according to some economists.

In this backdrop, the business managers should not have faith and trust in a framework where financial statements prepared and audited which were developed for an earlier economic environment when tangible assets such as machinery were the engines of growth; but instead need to rethink the accounting model to fit the new informational and influential economic paradigms of a knowledge economy, according to Institute of CMA Australia Sri Lanka Branch President Murali Prakash. He said that as the external environment begins to exhibit positive signs, a change in culture from survival to opportunity is a necessary response for the firm wanting to initiate value creation and take advantage of the economic upswing.

In such a setting, the ICMA Australia has organized a seminar on July 1 the theme 'Are we ready for the paradigm shift in upswing economies?' to be held 1st of July at the Galle Face Hotel.

"This seminar which is titled 'New directions for management accounting in upswing economies' is targeted at operational and strategic level managers," said the local branch CEO Kapila Dodamgoda. "It is only then that management accountants can help executives to catch the mood to provide relevant decision oriented information in upswing economies such as Sri Lanka," Dodamgoda said. He said that an eminent panel of business leaders expressing different industry outlooks will be conducting two sessions; the first one titled 'The accounting delusion: Faith and trust in financial reporting' followed by 'The audit evolution - Moving from assurance to strategy'.

South Australia University, City West Campus, Commerce Division of Business, Professor Janek Ratnatunga will head the first session which will be moderated by Strategy and Business Development Director Hemas Holdings Trihan Perera. Panelists at this session will be Unilever Sri Lanka Limited, Home Care and Foods Marketing Director Asanga Ranasinghe, Bartleet Transcapital Limited CEO Indrajith Fernando, INSEAD Social Innovation Centre Executive in Residence Ravi Fernando.

The second session will explore if management accounting reports fill the gap when financial accounting and audit reports provide information largely irrelevant to modern corporations for decision is making purposes. Dodamgoda said that recessive environments force many businesses into a culture of survival encouraging a risk averse, siege mentality throughout the organization. "This period of transition may be hampered by a tentative management, unsure of the strength of the recovery. A strategic audit programme is a corporate cat scan, uncovering inadequacies and risks lurking within the internal capability of the firm while at the same time opening up a vision of the potential strategic windows of opportunity appearing in the external environment. Effectively applied, it provides management with the ability to develop the confidence required to move forward from siege to offense and we will be discussing all these strategies."

ICMA Australia CEO Leon Duval with moderator, Cornucopia Sri Lanka Managing Director Dinesh Weerakkody will see panellists Hatton National Bank former Chairman Rienzie Wijetilleke, Ernst and Young Sri Lanka Country Managing Partner Asite Talwatte and Hemas Holdings CEO Husein Esufally at this session.

Further details could be obtained by emailing [email protected]