597-The Conference Recommendations


S

Strategetic center

A Conference on Relevance Regained for Narrowing the Increasing Gap
between Revenues and Expenses & Active Formula for Actual Doubling of
Monetary Revenues in Governmental Corporations and Institutions & the
application of Six Sigma to Cut down Costs

The conference was held at Helnan Shepheard Hotel on June 15-16, 2004.
It was organized by the Arabian Gulf Center for international
consultations in cooperation with the Strategetic Center for finance
and management, under the patronage of the former Prime Minister, Dr.
Ali Lotfi & the deputy Prime Minister and the Minister of Agriculture
and Land Reclamation, Dr./ Yousif Amin Wali. The conference tackled
the following topics:

First: The Relevance Regained for narrowing the increasing gap between
the governmental revenues and expanses in Egypt

Second: The worldwide concept on Relevance Regained and the most
significant variables facing accountants under the ever-changing
environment

Third: The efficiency of cost management under the competitive
dynamics

Fourth: Scorecards (balanced scorecard and accountability-based
scorecards)
Fifth: The meaning of Six Sigma and its relations with management
systems in addition to its applications in small, medium-sized and
large-sized corporations

Six: The Active Formula application for doubling monetary revenues in
governmental companies and institutions

Seventh: A methodology for reducing costs and doubling revenues

After further discussions on the aforementioned topics conducted by
the participants, the conference committee reached several
recommendations, the most important of which are the following:

1-Public expenditure should be economized without affecting the budget
items of replacement, renovation and maintenance in order not to
accelerate the deterioration of production assets.

2-The duplicity of tasks must be limited in many corporations in
comparison with its program. In addition, there should be proper
standards to measure the efficient way of expenditure and the
workers’ performance.

3- There should be up-bottom prioritization for expenditure on the
basis of the impact of every item on the corporation’s goals.

4- The Active Formula technique can be used in promoting tax resources
and charges. Its equations take into consideration the basic
foundation of the institution units and their duplicity. Further, it
does not depend on its monetary proceeds.

5- The Active Formula method can be applied in doubling monetary
revenues in institutions. Further, it serves as a real criterion for
the performance.

6- The lost relevance between accounting numbers and reality should be
regained.

7- The Relevance Regained technique can be used to clarify the
achievements recorded in balance sheets and accounting books. Further,
it relates them with real life in terms of assets, objectives as well
as performance, quality and constant reform and the ability to satisfy
clients.

8-Scorecards should be utilized to record and measure performance.
Further, budget results should be achieved through four components
(comprehensive vision for the future of the company- the goals of
putting this vision into practice- management style for implementing
these goals- previous experience and feedback). In case of
non-fulfillment of the second goal for example, the other three
elements can act as a source of vital information according to which
managers can take the right decisions.
9-The Six Sigma technique should be applied in both the product and
service institutions. As a result, this will lead to better strategic
outcomes like creating job opportunities. In addition, it will
minimize the number of the costly defective products. In consequence,
this leads to cut costs and increase the revenues. Besides, it
increasingly attains the confidence of clients and stakeholders.

10-Any uncompetitive accounting information should be removed like:
a) Product volume increase
b) Cost reduction

All workers should firmly adopt the Relevance Regained technique to
promote client satisfaction.

11-There should be a shift to dependence on knowledge-creating
principles as an indispensable advantage for the survival of the
institution represented in the connection between just-in-time system,
total quality management and added-value account. In addition, there
should be a kind of commitment with the constant reform. This is due
to the fact that it is a real substitute for the accounting
information systems on management. Such management is based on
capital, labor force and situational information rather than a
predetermined production plan. This is due to the fact that the
predetermined data are totally different from reality under variable
human ways of thinking nowadays.

12-The curricula studied in commerce and business colleges should be
reviewed to regain the lost relevance. This is represented in the
following:
§ Ways of continuous development should be taught rather than
restricted production improvement methods.
§ Problem-solving ways should be taught rather than finding solutions
for the problems.
§ Teamwork-oriented education should be encouraged rather than
reaching solutions individually.
§ Opportunities of field study should be available.
§ Practical styles understood by transactions and clients should be
more important than accounting and financial theoretical notions.
Further, students should be adapted to work environment through
instructing them the practical styles of processes.

The above-mentioned recommendations were read by the conference
participants who agreed upon their contents. Then, they sent them to
mangers and decision-making executives. Further, the committee signed
them within the framework of the conference on June 16, 2004.
 
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