Highly effective internal decision support information is the key to long-term profitability by maintaining or expanding the role of accounting and finance in companies for today’s highly connected, digital, and data-rich environment. The Profitability Analytics Center of Excellence (PACE) builds on Institute of Management Accountants (IMA) Statements on Management Accounting (SMAs) that are developed by its members, including The Profitability Analytics Framework, Conceptual Framework for Managerial Costing, and Revenue Management Fundamentals. PACE seeks to design and support end-to-end processes that are tied to strategic planning while building on traditional ROI elements – Revenue, Operations/Cost, and Investment. The PACE approach to traditional ROI elements is adapted to today’s business environment by incorporating a data-analytics focus, Industry 4.0 trends, and tangible and intangible investments.
PACE is a not-for-profit organization that works to advance management accounting and thought leadership to ensure the profession is prepared for a future that is focused on creating value and insights, standing in contrast to traditional historical reporting. PACE is committed to helping the accounting profession move beyond historically-oriented financial reporting models and move aggressively toward models that reflect cause and effect for internal decision support and the real economics faced by companies in fast-moving markets.
PACE addresses issues like:
- Why is finance and accounting’s cost information ignored? What’s wrong?
- What are the indicators needed by organizations for new and improved cost systems?
- How can accounting and finance more effectively engage in revenue management processes?
- Why is traditional depreciation misleading? What a good alternative?
- How to develop and deploy affective models for internal decision support information?
- And more…
The PACE website contains information about our program and reference materials to assist your efforts to improve internal decision support. It also has a forum for discussion and questions. PACE also maintains an active LinkedIn page that supports discussion and routinely announces PACE activities, such as our monthly webinar. PACE webinars are recorded on the Profitability Analytics YouTube Channel.
Written by PACE Directors: Larry R. White, CMA, CFM, CSCA, CPA; Douglas Hicks, CPA; Gary Cokins; and Monte Swain, PhD, CPA, CMA, CGMA.
For assistance with your own profitability and operational analytics efforts learn more about BPM Partners’ offerings in this area.