Book Description

Take control and keep your company competitive. The controller's role in corporate America has become increasingly crucial and exceedingly complex. So how can new and established professionals enhance their performance and sustain their company's competitive advantage? With The Controller's Function, Third Edition.

From describing essential competencies—cash management, budgeting, fraud prevention and establishing codes for corporate ethical behavior—to detailing the more sophisticated skills like activity-based and target costing, disaster recovery planning, and outsourcing, The Controller's Function expertly balances both the technical and managerial sides of the job.

You'll quickly access information on how to:

• Use electronic spreadsheets for financial analysis
• Successfully implement a shared service center
• Enhance performance through online inventory systems, quick closing procedures
• Selecting adequate accounting software
• Avoid insurance pitfalls through proper planning

Order your copy today! ... Read more

Book Description

A number of peripheral discussions have been eliminated, particular those for which there was substantial mathematics with little insight to show for it.
* Chapter on measuring cost and benefit advantage have been eliminated.
* Integrates insights from the theory of the firm, industrial organization, and strategy research.
* Contains hundreds of examples to illustrate how the economic principles of strategy apply to the actual business world. ... Read more

Reviews (15)

Clearing the fog in tackling corporate strategy
For those who have become disenchanted with the faddish rhetoric of corporate strategy, and seek more rigorous analytical grounding than offered in most "inspirational" business books, this text by three faculty members of Northwestern University and of Purdue University is refreshing.

The text recapitulates the key tools of micreconomic theory in a masterful introductory chapter which covers cost theory and game theory. The rest of the book is structured around the four classes of issues which the authors see as the essence of strategic analysis: firm boundaries, market and competitive analysis, position and dynamics, and internal organization.

The text is full of excellent examples and mini case studies from a wide range of industries.

I have not found it easy to find many other texts which achieve this balance of analytical rigor and practical business-oriented empirical focus.

Strategy is more than blah, blah, blah
This book offers a very modern approach on strategy, including economics foundations and numeric solving of the different strategic concepts analyzed. The book is not for everyone, you need to have basic knowledge on business management, economics and math. As an MBA manager and academic, the book gave me new vision and a strong base on the strategy concepts. I recommend this book for every MBA student and manager.

A book that reasons the strategies
Many business books provide models of competition, innovation, etc. without adequately reasoning how the models were reached. Whereas they provide solutions to a problem - they do not provide the understanding of how the solution is reached.
However, this book provides a sound reasoning for every model on the basis of microeconomics. Even apparently abstract concepts like organization structure are explained on the basis of economics. I personally feel that the concepts covered in this book have been ingrained in my mind.

Great treatment of strategy
This book treats strategy from a strong grounding in micro economics. Forces strategic thinking to be grounding in fundamentals unlike a lot of hand waving you see in other books. Highly recommended

Good Point of View
Quite a good book: a clear and well organized view on the basic economic concepts behind strategy decision that, too often, are not taken into consideration. I used it to re-build the foundations to understanding strategic options. ... Read more

Book Description

Activity-based pricing: the new paradigm for maximum profitability

Pricing for Profitability introduces activity-based pricing, a new paradigm for improving profitability by reducing the occurrence of pricing mistakes and placing less emphasis on increasing revenue and more on improving profits. Activity-based pricing will help any company set prices that are attractive to buyers and profitable for the company. Pricing for Profitability teaches activity-based pricing to help you make better pricing decisions based on customer demand and a better understanding of what really causes profits. It will help you prevent underpricing and generate a healthier financial return.

Simply organized and nontechnical, this in-depth treatment covers the ten vital topics of activity-based pricing. A wealth of examples that illustrate the points made in the text include activity-based pricing models used in real industries. Designed for everyone involved with the pricing process, Pricing for Profitability provides a comprehensive understanding of how to use pricing to gain the competitive advantage. ... Read more

Reviews (5)

Activity Based Costing Success Story
We have used the concepts outlined in John Daly's book to develop an activity based costing model. In fact, it has proven to be so useful that we are in its third revision. It is has been a critical tool for us to remain profitable during these difficult economic times. I do not know how we got along with out it!

A Must Read for Manufacturers
Pricing for Profitability has allowed our company to intelligently quote new projects and answer a critical question during price negotiations - "Should I walk?". We have also found the activity based pricing concepts useful for evaluating the countless cost down requests we get from our customer and understanding what we can and cannot do. I would recommend this book to anyone in a highly competitive, tight margin business.

Valuable insights into profitable pricing
John Daly has written an excellent book with important insights into the desirability and mechanics of using Activity Based Pricing to achieve a profit-driven pricing model.

Why is this important?

If you really understand and properly allocate your costs and use that understanding to develop an Activity Based Pricing model for your products and/or services then you are pretty well assured of profitability, particularly as you increase unit volume. Of course, this assumes you can sell at a price higher than your fully loaded, properly allocated costs.

As Mr. Daly clearly describes, traditional cost allocation methods (not to mention back of a napkin allocations) result in problematical cost distortions and lead to potentially serious pricing errors.

Anyone with profit and loss responsibility, or who would like to get there, would be well served to buy this book, read it and take it to heart. It is well written, coherent and was a pleasure to read. Daly has struck an excellent balance in that the book is not so filled with technical accounting/finance detail it is inaccessible to a non-accountant and yet it has sufficient substance to be of interest to accounting and finance specialists.

As investment bankers we receive financing requests from many companies seeking capital that are not profitable or not as profitable as they could be. Activity Based Pricing is one of the disciplines we are introducing to our clients and prospective clients to help them achieve profitability or become more profitable in order to better position them to compete for capital.

Excellent!
Mr Daly's writing style is smooth and casual, and the book is loaded with common sense. His discussion of overhead allocation problems certainly makes the point that GAAP accounting practices lead to serious errors in cost accounting.

Full disclosure: I personally prefer an engineering model or standard cost approach, reality-checked with what might be called sampled-ABC: old fashioned time and motion studies.

A New Paradigm in Pricing Strategy
Pricing for Profitability is a refreshing new look at pricing strategy the combines the disciplines of Business Strategy,Cost Accounting, Economics, Marketing and Business Strategy to create an approach where each of these disciplines will surely find a solid common ground.

The book concentrates on maximizing profitability, rather than maximizing revenue, convincingly refuting the approaches of other pricing books (written by marketing professors) that say "the more sales the better". He reminds us that revenue does not equal profit, but that profit = revenue minus expenses.

Mr. Daly asserts "there are three things that can happen that can happen in product pricing and two of them are bad", the most devestating result being that many companies underprice difficult or low-volume bids sometimes loosing significant amounts of money. He believes that many organizations have an inadeqate understanding of their costs which leaves them at a competitive disadvaantage.

This book is a must read for any manager who has pricing responsibility. ... Read more

Book Description

Put your numbers to work

"Best Practices in Planning and Management Reporting is a must-read for anyone contemplating finance transformation. David Axson provides an insider’s view into the successful techniques and transformational strategies of The Hackett Group and their parent company, Answerthink."
–Michael Geltzeiler
CFO, Reader’s Digest

"In this new era of corporate governance, where the need for more and better information is a heightened priority, David Axson’s book provides timely insight and instruction for companies looking to leverage technology to enable best practices. When combined with process and organizational changes, companies can achieve significant efficiencies and dramatic improvements in information transparency, business planning, and performance management."
–Renee Lorton
Senior Vice President and General Manager
Financial Management Solutions
PeopleSoft, Inc.

"David Axson’s insights into the practical application of best practices combined with The Hackett Group’s benchmarks provide a valuable guide to implementing effective planning and management reporting processes. Organizational learning and improvement in this area is crucial to manage effectively in today’s volatile business world."
–Richard B. Kelson
Executive Vice President and Chief Financial Officer, Alcoa Inc. ... Read more

Reviews (3)

illuminating insights
An entertaining, insightful book - I found it useful in describing how benchmarking can be used to good effect in practise - in real situations - from someone who has definitely been there and done it. Our organization can certainly use the advice here - big time - and save ourselves a bunch of consultancy fees into the bargain!

Practical & easy to read
Axson's book offers a practical and easy to read review of best practices in one of the most maligned areas of management. Combining useful benchmark data and implementation guidance this book provides a useful companion for anyone attempting to navigate through a tough change process

Rehash...
This is another consultant's attempt at what I learned in my business practice. The book does not rise above the obvious, but is, for the most part, a survey of ideas. The best practices discussed have little depth or meat to them. If you are an executive with planning experience or have read other books on the subject, the read adds very little. ... Read more

Book Description

Praise for Performance Management

" We are witnessing a convergence among advanced management concepts and practices.Performance management is a means to pull it all together, to understand the strengths and limitations of each management practice and leverage it for competitive advantage. Cokins’ book walks us through all this in a manner that makes something confusing much less so.
" There is no one right answer for any situation.The answer lies in a balance of concepts and the integration of them. Performance Management is the glue that holds them all together.
" This book helps the reader understand the breadth of PM.It’s not just about measuring!"
–– John F. Morrow, CPA, AICPA Vice President, The New Finance

"Gary Cokins has articulated the ‘411’ of performance management.His combination of personal anecdotes with fundamental cost and performance management theories provides business leaders at all levels, in any industry or profession, a solid resource for practicing their work.
"This book is not only an invaluable resource for those new to performance management but provides guidance, wisdom, support, and insight to all industry leaders and managers. Cokins has organized and simplified the many complex performance management theories, associated tools, and infrastructure for the reader.
"Buy it, read it, and give it to your colleagues–– then celebrate your successes!"
–– Sue Swertfeger, Senior Manager, Owens & Minor ... Read more

Reviews (4)

Great addition to ABC and Performance Improvement
From TQM to Balanced Score Cards - this is the book that provides a practical synthesis. Focus on cause and effect relationships and away from abstractions. Must have book.

Business performance in context of today's environment
If execution is the goal these days, then this book brings an interesting perspective -- it's both big picture AND 'how to do it' at the same time. Cokins does a great job of putting the execution imperative into the larger context of "why." A good read for a reminder of basic performance management tools and for exploring how they work best in the context of today's tough business environment.

Great Graphics in Performance Management
Gary's book, on Performance Management published by Wiley, does an excellent job of pointing out there are no "Silver Bullets" or management tools that solve all problems. Combinations of the right techniques is an art. Bold graphics and flow charts in the book do much to stimulate the thought process. Business failure is often a result of inadequate performance management systems. Survival in today's global economy requires many of the better performance management techniques described in Gary's new book. A great addition to any business library. Bill Hass, Certified Turnaround Professional, wjhass@aol.com

Gary made a complete view of Performance Management
This not a common book about Performance Management. It integrates several methodologies like Activity Based Management, Balanced Score carding, Value Management and Customer Profitability Management.

If you want to know more about Performance Management roots, this book can be a practical guide to understand several aspects involved when you are working to implement successfully a PM initiative. ... Read more

Book Description

Cost Management: A Strategic Emphasis, by Blocher/Chen/Lin was the first cost accounting text to offer strategic management topics in conjunction with traditional cost accounting material.The text was written to help students understand more about management and the role of cost management in helping a firm or organization to succeed.This text aims to teach you about management, and how cost management is used by managers to make better decisions and improve their companies.In teaching these key management skills, this text takes on a strategic focus.It uncovers issues such as, How does a firm compete?What type of cost management information is needed by managers that are working to make the firm a success?We want students to know why, when, and how this information is used to make effective decisions that lead the firm to success. ... Read more

Reviews (1)

Good for managers bad for students
I bought this book to help me studying for my part 3 CMA exam.

The reason I removed the fifth star from my rating is:
First : It does not have enough questions, or questions are irrelevant to the ones you get in a CMA exam. Besides, there are no answers given to help you evaluate your self.

Second: Though it has a good website for student support ... some main chapters are still under construction!!

My Conclusion is that If you are a manager, you will find this book very helpful more than any other book but if you are a student you better use another text book like Horngren . ... Read more

Book Description

Garrison/Noreen has been- and still is- the market-leading text in managerial accounting, having educated close to 2 million students since its inception. In short, ”Garrison is the Guide” in Managerial Accounting.The lighthouse on the cover symbolizes that for this difficult course, Garrison’s comprehensive but manageable coverage, author-written supplements, and peerless end-of-chapter material makes it a safe and dependable choice for instructors and students alike. The loyalty and following it has achieved is due to the authors unwavering commitment to three simple principles: relevance, balance, and clarity.

Book Description

A complete appraisal of analytical tools available to managers to assess performance

"Steve Bragg has created a useful, relevant guide to applying performance measurements across the organization. His practical explanations and examples should enable managers to apply sophisticated performance measures in a straightforward manner. This book will be a great tool for process improvement. It should be well received by managers, accountants, and consultants."
–Clint Davies, Partner (Principal)
Berry, Dunn, McNeil & Parker

Business managers require a variety of analytical tools to assess a host of organizational performance standards–from finance, efficiency, capacity, and market share to asset utilization, cash flows, liquidity, and capital structure. Steven Bragg’s Business Ratios and Formulas represents a comprehensive resource of nearly 200 operational criteria, allowing managers and auditors to pick and choose the tools they need to best assess their organization’s performance. Each cataloged measurement includes a description, an example, and some time-tested troubleshooting. Business Ratios and Formulas proves an authoritative resource for managers wishing to thoroughly assess organizational performance. ... Read more

Reviews (1)

An excellent business resource
Business Ratios and Formulas, A Comprehensive Guide, is the most thorough reference book of its type. Steven Bragg provides a complete explanation of each business ratio and formula and follows each with a scenario example of their applications. Also provided is a discussion of how the resultant calculation can be misleading or should be used in conjunction with other ratios. I have not seen this feature in any other book of its kind.

Another excellent feature of the book is the chapter on "Measurement Analysis with an Electronic Spreadsheet", which describes the use of Microsoft Excel to assist the business professional in automating the analysis. Five types of analyses are included in this chapter: financial statements, project analysis, investment analysis, risk analysis and trend analysis.

In the introduction to the text Mr. Bragg states, "Even if a company has developed a reasonable set of measurements, this does not mean that they should never be changed." As a controller I am in the process of re-examining my company's measurement process. This book is an invaluable resource. Excellent for both the professional and student. A book I wish I had during my MBA studies. ... Read more

Book Description

Contains leading-edge treatment of innovative management accounting issues used by major companies throughout the world. Advanced Management Accounting provides a systematic management- oriented approach to advanced management topics. Each chapter is accompanied by cases to illustrate the concepts discussed. Written by an authoritative author team known for establishing innovative business standards. Includes an updated chapter on Transfer Pricing to reflect more modern approaches in addition to an entire chapter on Economic Value Added (EVA).Appropriate for business professionals involved in cost accounting and/or management. ... Read more

Reviews (9)

An excellent book for practioner and truely advanced learner
MBA students alike may not even have the patient to read through it. But, as a management consultant in China ( i used to work for 2 of big 4 accounting firms, and now working as a freelance to help local companies to solve their managerial costing problems), this book is my primary reference for my work. I applied ideas in this book helping my clients building ABC and transfer pricing and costing control models. When you really need to solve true business problems (rather than reading in the school), you will find this is "the" book. In my view, you have to read Kaplan and Cooper's staff if you want to get some true knowledge about managerial accounting.

This book is not what I expected....
I have studied, practiced and taught managerial accounting for more than 17 years at work, using excellent supporting text and case books from recognized US authors. But to be honest Dr. Kaplan is making easy concepts to appear complicated and cumbersome. His case readings as well as the text materials are very length and hard to "digest" since it does not capture the attention of the reader.I would not recommend the book neither for and undergraduate or graduate degree, despite the well known and worldwide recognition of Dr. Kaplan. His book is far from being pedagogical in nature.

An Advanced Accounting Student Opinion
I have studied many aspects of financial and management accounting, management issues, etc. from introductory to advanced levels. I have never used such an unappealing book. The student must sift through much wordiness. There are few, and sometimes no examples of the various calculations. There is very little use of white space. Virtually no colour, no use of bullets. Not only is the material presented in a "dry" form, but the book is not pretty to look at. The most praise I can give this book is that it is not too heavy to carry, and it has a pretty blue cover.

hmphh....
The explanation is too long, examples are vague, ambiguous and the cases provided is not really relevant to my level of knowledge. This book might be best for PhD holders, but not for me who is an undergraduate. My lecturer also complained that the explanation used is not suitable for our level. No interesting graphics or colour to attract readers.

Into the deep, drowned in the cases
This student textbook assumes a basic of management accounting. Well, I was known with the terms, and understood their examples, but completely lost track at the cases. At first I thought it was due to my language knowledge, but colleague students had the same problems and couldnot explain to me which information to use, which parts of the cases was useful and what was rubbish. Of course 'management accounting' is about retrieving the correct information, but it was a few steps to early for me. ... Read more

Book Description

Today's competitive environment requires that companies distinguish themselves in the marketplace using factors other than prices.Companies that excel at on-time delivery, short cycle/leadtime, quality, and fast response to the market gain a competitive edge - and have the ability to market based on these features. A proven approach to achieve this is the Theory of Constraints (TOC) production solution known, as drum-buffer-rope scheduling. Just in time (JIT), Total Quality Management (TQM) and other philosophies aim at exploiting these competitive edge factors. However, accounting systems, financial, and incentive measurements continue to be the biggest stumbling blocks to companies wishing to improve their financial performance with these tools. Agreement on the need for a measurement system that encourages local actions in line with bottom line results is common, but solutions have remained elusive. Whether a company is pursuing JIT, TQM, or TOC, cost accounting is the common enemy.Attempts have been made to introduce "new" costing methods such as activity based costing and economic value added, but they have failed to recognize the basic difference between product costing for financial statement purposes and collective management information to make real time decisions.The Measurement Nightmare shows you how to resolve the conflicts and remove the accounting systems, financial, and incentive measurement roadblocks to adopting TOC, thereby gaining improved performance and sustaining competitive advantage. The techniques that the author, leading authority Debra Smith, has implemented and tracked at various companies highlight "the productivity measurement nightmare". Especially important are the day-to-day tools she developed to ensure successful implementation. ... Read more

Reviews (8)

Great TOC book
Debra has done a nice job with this book. I would recommend it to anyone interested in learning more about Theory of Constraints.

Great Material - Difficult Read
This is an excellent book if you are serious about TOC. It covers the basic how-to subjects currently in the liturature, and goes into new territory showing how to reconcile Management/Throughput Accounting with GAAP Acounting. Despite the great material I have two complaints: 1) The book is difficult to read due to the small font and wordy style 2) The book fails to recognize the existance of Lean Manufacturing and Six-Sigma tools that could break the dilemia presented about sprint capacity and buffer size. The second issue is one that any experience practitioner of Lean/6-sigma will easily recognise and correct.

Getting to the core of the problem
The book focusses on the root problem behind all those dysfunctional metrics around us. It explains very clearly (also for people not trained in financial jargon) how the wrong focus on the wrong metrics in the top of the organization can have impact on the complete organization and may impact negatively the quality of decisions throughout the company.

Very much recommended!

Seamless blend of traditional (GAAP) and TOC
This remarkable book manages to cover a wide array of topics (TOC, metrics, accounting and GAAP compliance and implementation and strategy issues)in approximately 200 pages and still impart a deep message. The message is not subtle - don't be a lemming just because 'you've always done it this way'. Actually, the message is much deeper and also encompasses how to measure the right things.

What I like most is the fact that the author can write clearly and hold your attention while at the same time providing you with enough information to cause you to rethink the way you're currently doing business - and giving you a clear path to doing it better. The book starts out with eye-opening stories from the author's past experience of companies what were measuring the wrong things based on myopia. She then introduces TOC, discusses how traditional accounting metrics and indicators can be aligned to TOC, and goes deeper into TOC with a direct emphasis on how it relates to accounting methods. From there the book goes into TOC metrics and how to align them to GAAP financial statements. This short book wraps up with excellent implementation advice that is based on a strategic approach.

Overall, this book is easy to read, but is rich with information beyond what one would expect is such a short book. The author backs up her proposed approach with real life experience and compelling facts that are logically presented and based on hard numbers, and is an obvious expert in both accounting and TOC.

Measurement or Comedy of Errors
This is far and away the most entertaining managerial accounting text ever written. Smith illuminates the flaws in traditional accounting measures with humorous (unless they happen to you), real disaster stories. Each story includes explanations of the classical accounting analysis (or misguided blind pursuit of efficiency) which caused the disaster and a discussion of more appropriate metrics.

That people often let the way employers measure them influence their on the job behavior is a double edged sword. People measured stupidly just may behave stupidly (because the stupid measures will punish them if they behave wisely). Any CFO or managerial accountant who does not thoroughly understand this book may, with all the best intentions, put her/his entire organization at risk. The disaster stories lose some humor in the first person.

Read it because its fun. Apply it because it works. ... Read more

Reviews (2)

This a teacher and student choice!
Best book so far for teahing accounting.This is the book for learning accounting.

This book was the salvation of my accounting class...
My accounting professor was awful and it was this book that saved my grade in the class.It provides very detailed explanations and summaries of each concept it covers throughout the chapter, not just at the end of the section.The accompanying working papers and study guide were also very informative and helpful. ... Read more

Book Description

The Ultimate Accountants’ Reference offers a single-source tool of best practices and control systems related to accounting regulations for all aspects of financial statements, accounting management reports, and management of the accounting department.The perfect daily answer book for the practicing accountant, it also addresses financing options, risk management, mergers and acquisitions, and taxation topics.

This revised and updated edition of Accounting Reference Desktop offers a concentrated, everyday reference manual to help financial professionals become much more efficient in researching accounting topics.New features of this improved resource tool include:

• Up-to-date information on GAAP, IRS regulations, and new SEC regulations
• New material on leases and options
• More examples than the previous edition
• The latest coverage of control systems, including twice as many controls as the previous edition
• Double the amount of journal entries as the previous edition

Accountants, accounting managers, and finance personnel will turn to The Ultimate Accountants’ Reference time and again for quick, reliable answers to everyday issues. ... Read more

Book Description

A budget is the formal expression of the plans and objectives of management that covers all phases of operations for a specific period of time. Without clearly outlined budgets, corporations are unable to predict profits or losses or create plans for the future. The Fifth Edition of the Handbook of Budgeting has been fully revised and updated to help you keep up with this ever-changing world. This handbook shows controllers and budget directors how to create any style of budget, from traditional approaches to more cutting-edge approaches. Divided into five informative parts: An Introduction to Budgeting, Tools and Techniques, Preparation of Specific Budgets, Budgeting Applications, and Industry Budgets, this book provides complete coverage of the preparation, presentation, analysis, and effective use of the budgeting function. The Fifth Edition of the Handbook of Budgeting covers all facets of budget presentation for both profit and nonprofit organizations, and includes chapters on specific industries such as healthcare, biotechnology, and higher education. Numerous checklists and examples will ensure your understanding of this critical topic and help you enhance your budgeting skills. ... Read more

Reviews (2)

Needs more updating
Overall a good book, because it covers most topics related to planning and budgeting.

Some chapters need serious updating. For instance Chapter 32: "Computer applications in Budgeting, 'Microcomputer' Overview and needs assessment.." is totally out of date with respect to software applications in budgeting (Who still uses the term "Microcomputer" ?.
I have found this to be unnacceptable for a book with this price tag.

Great resources for all financial professionals
As a new financial manager I was searching for a book which will show me to prepare a budget and understand a budget process. No doubt understanding budget is the most immportant role in this field and this book I found was most helpful. I strongly recommend this to all finaltial professionals. ... Read more

Book Description

Praise for Creating Value through Corporate Restructuring

"A helpful reference guide for managers facing the complex operational and financial issues raised in today’s competitive environment. Gilson’s case studies provide a real-world context against which corporate leaders can plan their restructuring strategies."–Arthur B. Newman, Senior Managing Director, The Blackstone Group

"Stuart Gilson’s analytical case studies have demystified the battle of enterprise valuations in financial distress and buyout situations. It is a must-read for understanding the restructuring and buyout arena. I highly recommend this book."–Harvey R. Miller, Senior Partner and Chair of the Business, Finance, and Restructuring Department, Weil, Gotshal & Manges LLP

"The economically pivotal process has never before received such a rigorous and well-rounded treatment. Gilson goes far beyond the legal framework of bankruptcy resolution to show how industry-specific factors, conflicting creditor claims, and negotiating stratagems all determine a financially strained company’s fate. Readers of Creating Value through Corporate Restructuring will gain wisdom that could otherwise be obtained only through many years of direct experience in the field."–Martin S. Fridson, Chief High-Yield Strategist, Merrill Lynch & Co., Inc.

"Creating Value through Corporate Restructuring ably describes the importance and difficulty of designing, executing, and marketing restructuring strategies. The case study format offers the reader an inside look at the real world of corporate restructuring. With this book, Gilson provides a useful blueprint for tackling restructuring challenges."–Jay Alix, Founder and Principal, Jay Alix & Associates

"Stuart Gilson has created a much-needed book for practitioners and professors alike.It should be required reading for MBA and PhD students who need to understand corporate reorganization and crisis management."–Sanford Sigoloff, Chairman, President, and CEO, Sigoloff & Associates, Inc.

Please visit our Web site at www.wileyfinance.com ... Read more

Reviews (32)

The only reference guide for the restructuring/turnaround
This is an extremely important book that nimbly moves where no one has gone before to explain the value creation through corporate restructuring and turnaround. It does so by complementing real world case studies with well-focused introductions of theoretical concepts, analytical tools, and legal/tax framework. As a restructuring consultant, I found that the book contains much useful practical information on the restructuring process that turnaround practitioners can find helpful in their practice. The case studies themselves include useful applied, institutional information about how various types of restructuring are done, what motivates restructuring, what different restructuring options are available for dealing with a particular problem or challenge, etc. I find that it goes far beyond the legal framework of bankruptcy resolution to show how conflicting stakeholders claims play to create or destroy value. The book undoubtely breaks new ground in explaining the restructuring strategies and processes. I recommended the book to many of my colleagues in reorganization and restructuring services as I believe it shoud become essential reading for students, creditors, debtors and consultants as they face the complex operational, legal and financial challenges of distressed situations. The price: I found it steep at first glance but then I changed my mind when I compared it to other professional books in the industry.

The SEMINAL WORK on Creating Value Through Restructuring
Without question, Professor Gilson's book is the SEMINAL WORK on creating value through corporate restructuring. It is essentially the Graham & Dodd "Security Analysis" of the corporate restructuring sector. A "must read" on corporate restructuring for investors, professionals, executives, managers, and students. The benchmark against which any other text in this area should be measured. Wealth of practical, yet sophisticated information about real world "how to's" of corporate restructuring. Harvard B-School case study format. The Harvard case studies are carefully designed to provoke discussion and challenge readers to consider the options for restructuring companies facing potentially "life-threatening" business challenges or crises. These companies have actually been through various restructurings (bankruptcy, spin-offs, tracking stocks, mergers, layoffs, etc.); insight comes from real companies and their real challenges. Definitely a useful textbook in any undergraduate or MBA level course addressing these topics (topics unfortunately mostly ignored by writers and universities until now.) Excellent work describing various restructuring processes. For example, Professor Gilson describes in detail Chapter 11 bankruptcy reorganization tactics such as tax issues to be addressed prior to spinning off a division, tracking stock alternatives, and business analysis associated with employee downsizing. Valuable essays on investing in debt of troubled companies and valuing companies during restructuring. Useful introductory chapters summarize case study lessons and list relevant research on related topics. Japonica Partners has been active in the restructuring area since the late '80s, and has created over $2 billion in value for our investors. We've found no other resource in this sector that comes close to this book. Many of our professional team members have already found value-added in its pages. Perhaps Professor Gilson will follow up with a second book (for instructors only) providing a transaction analysis on the evolution of each case.

Finance with Negative Signs
Someone (perhaps it was I) has said that bankruptcy is corporate finance with negative signs. This has always been true but it is amazing how far mainstream finance has gone to try to resist the comparison. The resistance must be, must have been more cultural than economic, because it is axiomatic that anything is a bargain at the right price, and that there is no more or less money to be made in "distress investing" than in any other. Two generations ago, there seems to have been only one person in American that really understood this point - the late Max Heine, who made his grubstake by investing in out-of-favor railroad bonds in the Great Depression, and then riding the wave of prosperity that emerged in World War II. In the same vein, 40 years ago just about any bankruptcy judge would have looked on an "assigned claim" as some kind of monster.

Times have changed. Now everybody's an arbitrageur. The "vulture investors" have their conferences, their social clubs, and for all I know, their own softball team.

Stuart C. Gilson"s "Corporate Restructuring" symbolizes the sea change from the old attitude to the new. It adds the imprimatur of the Harvard Business School to the notion that vulture investing is just another way of making money. As others have noted, this isn't a work of high theory - indeed it has a kind of slapdash, direct-off-the-photocopier feel that is remarkably common in business publications. For fancy theory, you look elsewhere - in law to the likes of Douglas Baird or Lucian Arye Bebchuk; in finance to the developing lore of "real options." But the case studies are an excellent device for getting a sense of the texture and possibilities of vulture investing. It can be read with profit alongside Hilary Rosenberg's "The Vulture Investors." Ambitious students who want the full theoretical framework will match it with David G. Luenberger's "Investment Science." But Gilson's work has merit on its own as one kind of introduction to this revolution in investment thinking.

Only usefull for students
What a waiste of money.... The writer has not included any anlyses or real solutions to the cases that a provided. Unless you are a student in a class that use this book, this book gives you absolute nothing.

Good book but needs a companion text
This is a very good case book, complete with intricate case studies illustrating numerous aspects of challenges often faced in restructuring in bankruptcy. However, the book assumes a level of knowledge about M&A concepts that many readers may not have. Consequently, I would recommend using this book in conjunction with another excellent text by DePamphilis entitled Mergers and Acquisitions: Integrated Approach. There are two editions. The second edition is more complete and up to date. It also tackles some of the problems illustrated in this book. ... Read more

Book Description

• Best techniques for extending business credit
• Proven techniques to reduce unauthorized deductions and unearned discounts
• Latest Internet, electronic, and high-tech applications
• Practical real-life strategies to improve collections

Full of valuable tips, techniques, illustrative real-world examples, exhibits, and best practices, this handy and concise paperback will help you stay up to date on the newest thinking, strategies, developments, and technologies in credit, collections, and accounts receivable.

"This book is filled with wisdom, common sense, and practical solutions. Mary Schaeffer is right on when she states that credit is part science, part art, and part gut feel. I recommend this book to anyone interested in understanding the essentials of credit, collections, and accounts receivable."
–Vaughn P. Benjamin, Vice President, Media Credit Association
Magazine Publishers of America

"Mary Schaeffer has written an excellent book for the credit and collection professional. Every credit professional should read this book and keep a copy handy in their personal library."
–Tim Paulsen, Principal of T. R. Paulsen & Associates, author of Paid in Full
International Specialist in Creative Receivables Management

"Mary Schaeffer has taken a sometimes complex subject and reduced it to an easy- to -understand guidebook. This book should be in the reference library of every credit professional."
–H. Bruce Watson, Manager, Credit Services Group, Air Products and Chemicals, Inc. ... Read more

Book Description

Praise for The EVA Challenge

"The EVA Challenge provides helpful insights for both the beginner and the advanced EVA practitioner. Its real-life examples illustrate how the practical application of shareholder value orientation can align the goals of all organizational levels, motivate management by linking compensation to EVA performance, and bring additional value to shareholders."–Dr. Karl-Hermann Baumann, Chairman of the Supervisory Board

Siemens,A.G.

"A very valuable book for practicing managers who must solve problems. The authors provide a wealth of information and examples not only on implementing EVA, but on performance measurement and compensation in general. Their analysis is first rate. They draw from their extensive experience and from real companies, problems and solutions. I especially like the chapter on EVA failures."–Michael C. Jensen, Managing Director, Organizational Strategy Practice, The Monitor Group, Jessi Isidor Strauss Professor Emeritus, Harvard Business School

"Joel Stern knows this subject matter better than anyone. He adapted EVA so that we could use it to incent management at the United States Postal Service to greatly improve performance. We stopped losing billions and started turning profits."–Marvin Runyon, 70th Postmaster General

"The EVA Challenge is mandatory reading for any management in any business enterprise. Stern shows the way theory becomes practice and benefits not only management, but the shareholders and stakeholders alike. A must-read for management and shareholders."–Alfred G. Jackson, Global Head of Equity Research, Credit Suisse First Boston

"Joel Stern knows more about creating shareholder value than anyone in America. In The EVA Challenge you’ll learn how the master dumps rusty old accounting rules and hands managers a remarkable new yardstick for measuring success. Want to know the concept that made Roberto Goizueta great? Follow the Adam of EVA."–Shawn Tully, SeniorWriter, Fortune ... Read more

Reviews (7)

Highly Recommended!
Authors Joel Stern and John Shiely advocate a total revolution in the way companies are valued and measured. They make a convincing case for using EVA ("Economic Value Added") as the primary measure of corporate performance. The authors argue that the SEC's yardstick for corporate reporting, the "Generally Accepted Accounting Procedures" (GAAP), was designed to protect lenders by depicting a company's liquidation value. As such, GAAP provides an overly conservative and only marginally accurate picture of financial health. EVA principles - at least according to the consultants who advise companies on using them - evaluate intangible assets more realistically and correspond more closely to stock market performance. We from getAbstract recommend this book to executives who seek improved corporate financial and market performance, and to investors interested in understanding how value is created and maintained.

Aligning Shareholder and Manager Interests
One of the most difficult questions to answer is what a company's worth is. Two developments in American Capitalism have contributed to the question's complexity. First, shareholders have divorced themselves from the corporations operation, leaving the task to professional managers.

Second, generally accepted accounting principles do not align expenses with benefits, distorting economic reality. As a result, investors who want to compare the cash they can take out of a company with the cash they have invested are hampered.

The authors argue Economic Value Added (EVA) is a true measure of a company's economic performance, in addition to being a strategy for creating shareholder value. Properly implemented, they state, EVA frees the measurement of corporate performance from the vagaries of accounting principles and gives both shareholders and management a clear picture of the value the company creates.

EVA is the profit that remains after deducting the cost of the capital invested to generate that profit or EVA = Net Operating Profit After-Tax minus capital charge. Effectively implemented, the tool becomes the basis for an incentive plan that rewards managers for actions that increase shareholder returns and vice versa.

John S. Shiely, president of Briggs and Stratton and co-author of the book, notes this strategy provided the foundation of his company's turnaround. In 1989, the world's largest producer of air-cooled engines had an EVA of negative $62 million based on $1.3 billion in sales. By re-organizing and focusing its strategy while developing its EVA program, the company staged a dramatic turnaround. By 1999, it reported a record positive EVA of $50.9 million. Shareholders, who bought $100 worth of stock at the beginning of the program, saw it increase in value to $673 in 1999.

The authors claim EVA is ideal for knowledge-based companies making heavy infrastructure investments today for any anticipated return later. EVA treats cash outlays that represent investments as capital rather than expenses. The capital in these knowledge based industries consists of research, development, marketing, advertising and start-up costs. Accounts view these expenditures as expenses, but it is realistic to capitalize them and amortize them over their useful lives.

EVA from a Senior Management Perspective
EVA Challenge was OK. It is more geared towards senior managers who are thinking about EVA as a model for their companies. In that regard, this books does a fine job.

I was hoping the book would deal with more of the matamatics associated with defining EVA in relation to various projects and business decisions. This book contailed very little information in this regard.

What Is Your Organization's Net Worth?
Perhaps you have already read Ehrbar's EVA. He quite correctly points out that there can be many challenges to implementing a program based on EVA principles. He characterizes it as "a superior measure of corporate performance, one that is tied more directly to share than any other performance measure, by charging profit for the cost of all the capital a company employs, including equity."

More specifically:

"It is the framework for a complete financial management and incentive compensation system that can guide every decision a company makes...that can transform corporate culture, that can
improve the working lives of everyone in an organization by making them more successful, and that can help them produce greater wealth for shareholders, customers, and themselves."

Stern and Shiely (with Irwin Ross) focus on the specific challenges which will probably be encountered when initiates are taken to implement value-added change in an organization. They suggest all manner of strategies and tactics to achieve that objective, agreeing with O'Toole's key points in Leading Change when he analyzes what he calls "the ideology of comfort and the tyranny of custom."

For the authors of this book, there have been two major developments in American capitalism which explain why "the opportunity cost of capital" has been miscalculated: "(1) the split between ownership and control of publicly held corporations and (2) the widespread acceptance of accounting measurements [i.e. GAAP] to gauge corporate value, a purpose for which they were never intended." Having defined and then analyzed various problems in Chapter 1, the authors proceed into 12 more chapters whose titles suggest their focal points: The Solution, The Need for a Winning Strategy and Organization, The Road Map to Value Creation, The Changes wrought by EVA, Extending EVA to the Shop Floor [an absolute imperative], Getting the Message Out: Training and Communications, EVA and Acquisitions, EVA Incentives, How EVA Can Fail [and it does...the authors explain why], New Frontiers: real Options and Forward-Looking Eva, 25 Questions [which must be answered fully or forget about EVA], and finally, a Recipe for Success. The book then provides its own value-added benefit: an Epilogue written by Gregory V. Milano which discusses EVA and the "New Economy."

Briefly, I would like to comment on Chapter 13 which offers a "Recipe for Success." The authors introduce and explain six key factors. Having already acknowledged various forms of resistance and resentment which implementation of EVA principles may well encounter, the authors understand full well that these factors may offer the promise of success but by no means guarantee it. They are:

1. "The company must have a viable business strategy and appropriate organizational architecture before EVA can boost performance."

2. To achieve full potential of EVA, a company should install all of EVA's components -- a measurement system, a management system, and an incentive system."

3. An EVA incentive plan is essential, and it should reach as far down in the organization as possible."

4. "A comprehensive training program is equally essential. It should not be limited to top executives but should infiltrate all managerial levels and, ideally, reach down to the shop floor."

5. "The EVA program must have the full and fervent backing of the CEO, who should chair all the all-important steering committee that puts EVA in place."

6. "The CFO and/or the controller should be equally committed. Because they have to deal simultaneously with standard accounting practices, these specialists may have an even greater problem focusing on value creation than a CEO newly introduced to EVA."

Stern and Shiely (with Ross) offer a comprehensive, cohesive, and cost-effective program which, after appropriate modification, can be of substantial benefit to almost any organization, regardless of its size or nature. Milano's insights are especially important in 2001 as so many organizations are attempting (with mixed success) to reconcile the basic principles of the so-called "Old" and "New" economies. (I hope they or Ehrbar next write a book which explains how EVA can be of greatest benefit to privately-owned smaller companies.) Drucker was right: "Until a company returns a profit that is greater than its cost of capital, it operates at a loss." We have all manner of mechanisms by which to determine the exact net worth of an individual executive. Properly understood, EVA principles can do the same for an organization IF if those who lead that organization are guided and informed by the aforementioned "six key factors." If you share my high regard for this book as well as Ehrbar's, you are urged to check out Fitz-enz's The ROI of Human Capital.

THE big picture of EVA concept
Joel Stern masters the art of explaining EVA in a simple manner. Co-authored by John Shiely, sharing his on-the-job experience using EVA at Briggs & Stratton, the book looks at strategic considerations of why to use EVA and how it is better than other performance measures and financial management systems to enhance shareholder value. I especially like the "How EVA can Fail" and the "25 Questions" chapters because they go deep into issues sometimes overlooked when one thinks about Value Based Management implementation. ... Read more

Book Description

Practical, easy-to-follow ABC guidelines for small and mid-sized businesses

Incorporating activity-based costing (ABC) concepts into your business without relying on the usual complex ABC jargon can be a daunting task–even for the most experienced accountant. In Activity-Based Costing: Making It Work for Small and Mid-Sized Companies, professional accountant Douglas Hicks shows you how to sharpen your competitive edge while bringing you the "total package" of cost information–not just the computational elements. Using an approach developed while solving problems for small and mid-sized companies, Hicks has created a reader-friendly, comprehensive narrative covering every aspect of the ABC industry, including step-by-step instructions for building a cost accumulation and distribution model for any size business. With examples taken from Fortune 1000 companies, readers will find a wealth of information on ABC features, including:

• The logic behind ABC and its cost flow-down steps
• How to get the maximum benefits from ABC for your small or mid-sized business
• Case studies on emerging cost flow-down structures
• The most appropriate ways to change to multiple costing rates and bases
• Using ABC to perform "what if" analyses
• The danger of measuring costs using generally accepted accounting principles
• Applying decision costing and long-term contracts to your business

If your company is looking to dramatically improve its current cost information systems, this book is a must-read. You can have that crucial competitive edge. Activity-Based Costing: Making It Work for Small and Mid-Sized Companies will show you how. ... Read more

Reviews (9)

Very detailed
Hicks has a lot to offer in this book on activity-based costing, however it is not an easy to read. It very quickly dives into the weeds of detail. I think this is a very good second book to read on Activity Based Costing, because it goes into the details of how to actually implement a system. I would recommend that you first read Kaplan's "Cost and Effect," to get a good grounding in the fundamentals before reading this book.

Must Buy for ABC
This is a fantastic book on the subject of ABC. The costing model constructed in the book goes into just enough detail to give you a practical foundation for actual implementation, without getting lost in minutiae. At just the right times, the author also reminds you about the big picture and doesn't let you go away thinking correct decisions can all be boiled down to exercises in number-crunching. This is a must-buy, if you're serious about implementing ABC in your organization.

It really makes it work
Activity-Based Costing: Making it Work for Small and Mid-Sized Companies, is a very well written and usefull handbook to design and implementation of Activity-Based Costing. It provides: a general description of key concepts of ABC, a practical guide to design of ABC system in the company, as well as description of any potential problems concerning implementation of ABC. I am working as a financial consultant (in Warsaw), and this book has helped me to help many companies that were loosing their cost-effectiveness. I think, that the author should have added some 100 pages to the book, and defined - described some aspects of Activity-Based Management - although that could have been too technical for most of the readers. Overall, I think that the book contains most of the knowledge needed for successful design & implementation of ABC. It really worked for me...

Doug Hicks - ABC Guru
This is a model of clear and effective writing and teaching. Certainly one of the best accounting books I've ever read, it gives you the tools to start ABC analysis at once and never strays into jargon. The many examples of different company types and the simple to use and understand spreadsheet analysis keeps you focused on the theory of ABC rather than minute details of allocations. A book to keep on your desk.

Literally breaks ground!
I can not quite imagine a single decision made in any company that does not concern cost. And, when it is about accurate costing, I can not imagine another book on business that can better assist than this one.

First, the author defines the concept, states the reasons why Activity Based Costing should be implemented in every company, and then thoroughly shows you how to do it. Since the main step-by-step example in the book concentrates on a small manufacturing organization, those who are applying the concept to service organizations may have a harder time making the translation to their specific situations. Still, I don't think that will be much of an issue. The book is very well-written and must be digested by every professional with a passion for improving their company and seize a competitive advantage. ... Read more

Book Description

"No one has a clearer understanding of valuation than does Al King. He knows the nuts and bolts of this subject, as well as its intricacies, because he has practiced his profession on the factory floor, in the boardroom, and in the courtroom. The mathematics of valuation is easy to understand. Applying the underlying principles to the ever-growing myriad of business assets and issues is very difficult. Only a handful of valuation professionals have the breadth of knowledge and experience necessary to meet that challenge. The author of this book is one of them, and he conveys that experience in a readable style. He writes as he speaks- clearly and to the point. Anyone who wishes to understand the appraisal process as it pertains to business assets needs this book." --Gordon V. Smith, President, AUS Consultants
"Al King's Valuation: What Assets Are Really Worth aims to give the reader a deep understanding of what 'value' really means-and it succeeds brilliantly. King clearly explains why there is no single 'correct' value for many assets, using real-world examples to show that the intended purpose of a valuation must affect the result. Further, he offers examples of business problems (sometimes disasters!) caused by faulty understanding of value. Only someone with a truly deep understanding of the subject can explain it with such crystalline clarity." --Robert E. Esch, Retired Executive (General Management), Consultant, and President of Sarah Woods Traditions, Inc.
"What a wonderful, commonsense book for guys like me that covers the minefields of cost, price, and value. Every buyer or seller can gain many valuable insights from Al King's engaging book." --Thomas Swanston, Executive Vice President, Bassett Furniture Industries
"As usual, Al King has distilled a somewhat complicated area into commonsense business analysis that we can all relate to. His book is a very worthwhile read for professionals and business owners looking to better understand valuation in the broadest sense, as well as how it applies to their particular situation. I highly recommend taking the time to read this book." --Mark Santarsiero, President, Marshall & Stevens
"Al King has taken a complex topic and separated it into easily understandable components, which he highlights with meaningful examples. The result is a resource that attorneys, accountants, and business people in general can use frequently to explain to clients both the importance of 'valuation' and the concepts which define it." --Sari Ann Strasburg, Pepe & Hazard LLP
"Al King has put his long and vast experience in the field of valuation and accounting to use in Valuation: What Assets are Really Worth. He uses extensive examples to delineate differences between cost, price, and value. He then proposes that future debate should lead to disclosure and use of 'value' on a continuous basis. This book has been authored by a true expert in this field." --Frank C. Minter, CPA, Chair, Institute of Management Accountants ... Read more

Book Description

The most comprehensive and up-to-date guide to modern corporate restructuring techniques

Mergers and acquisitions are two of today’s most important competitive tools used by corporations in a rapidly changing global business landscape. In this ne