Conversion Ratios, Efficiency and Obfuscation: A Study of the Impact of Changed UK Charity Accounting Requirements on External Stakeholders

Key stakeholders in the UK charity sector have, in recent years, advocated greater accountability for charity performance. Part of that debate has focussed on the use of conversion ratios as indicators of efficiency, with importance to stakeholders being contrasted with charities’ apparent reluctance to report such measures. Whilst, before 2005, conversion ratios could have been computed from financial statements, changes in the UK charity SORP have radically altered the ability of users to do this. This article explores the impact on the visibility of such information through an analysis of the financial statements of large UK charities before and after the 2005 changes. Overall, the findings suggest that, despite the stated intention of increasing transparency in respect of charity costs, the application of the changes has resulted in charities ‘managing’ the numbers and limiting their disclosures, possibly to the detriment of external stakeholders.

Project Management within an Urban Site Context: Issues considering External Stakeholders

Large construction projects create numerous hazards, making it one of the most dangerous industries in which to work. This element of risk increases in urban areas and can have a negative impact on the external stakeholders associated with the project, along with their surrounding environments. The aim of this paper is to identify and document, in an urban context, the numerous issues encountered by on-site project managers from external stakeholders and how they affect a construction project. In addressing this aim, the core objective is to identify what issues are involved in the management of these stakeholders. In order to meet this requirement, a qualitative methodology encompassing an informative literature review followed by five individual case study interviews. The data gathered is assessed qualitatively using mind mapping software. A number of issues are identified which have an impact on the external stakeholders involved, and also how they affected proceedings on site. Collectively the most commonly occurring issues are environmental, legal, health and safety and communication issues. These ranged from road closures and traffic disruption to noise, dust and vibrations from site works. It is anticipated that the results of this study will assist and aid project managers in identifying issues considering external stakeholders, particularly on urban construction projects. A wide range of issues can develop depending on the complexity and nature of each project, but this research will illustrate and reinforce to project managers, that identifying issues early, effective communication and appropriate liaising can be used to manage the issues considering external stakeholders.

Emotional turmoil at the Bauhaus : problems of internal and external legitimacy : an historical case study

Walter Gropius established the Bauhaus in Germany in 1919. The organization established one of the most important design movements of the twentieth century. The organization had a very brief existence and was fraught with disruptions and emotional turmoil. Despite the difficulties, Gropius managed to keep the organization alive long enough for its extraordinary creativity to be harnessed and developed. The organization closed in 1933, but by that time its legitimacy as a source of design and pedagogy was assured. Organizational survival is often dependent on government subsidies, support through sales, donations or sponsorships. A factor in attracting this support is the perceived legitimacy of the organisation. Legitimacy is defined as a degree of consensus that the meanings and behavior of an organisation are valid and desirable by society in
general. Legitimacy remains an undeveloped concept. This paper reviews relevant theories of legitimacy, considers the role of emotions in shaping legitimacy and the emotions evoked as legitimacy is negotiated by internal and external stakeholders. A historical case study of the Bauhaus provides the backdrop for portraying the focal role emotions can play in institutionalization. The paper concludes with a discussion of the lessons of legitimacy available to contemporary cultural organisations.

Social intelligence and top management team: an exploratory study of external knowledge acquisition for strategic change in global IT service providers in India

This paper focuses on the processes by which firms, particularly knowledge intensive firms, can augment their overall knowledge stock by tapping into external sources of knowledge. It is argued that Top Management Teams' (TMTs') social intelligence is a critical learning capability in acquiring external knowledge that leads to strategic change. Social intelligence involves social awareness, social understanding and social skills. The study draws from the experience of 11 of the largest Information Technology Service Providers (ITSPs) in India and based on in-depth interviews. The findings show that TMTs' learning capability in the context of social intelligence to interact with external stakeholders is important to ITSPs in facilitating external knowledge acquisition and allowing new knowledge emerge within and across networks. The findings provide significant insights into ITSPs emerging in other developing countries such as in China. Research limitation and future research direction are also provided.

Does pedagogy still rule?

Theories on teaching and learning for adult learners are constantly being reviewed and discussed in the higher educational environment. Theories are not static and appear to be in a constant developmental process. This paper discusses three of these theories: pedagogy, andragogy and heutagogy. It is argued that although educators engage in many of the principles of either student-centered (andragogy) and self-determined (heutagogy) learning, it is not possible to fully implement either theory. The two main limitations are the requirements of both internal and external stakeholders, such as accrediting bodies and requirements to assess all student learning. A reversion to teacher-centered learning (pedagogy) ensues. In summary, we engage in many action-oriented learning activities but revert to teacher-centered approaches in terms of content and assessment.

Understanding legitimacy in a changing global economy

In a knowledge economy where technologically mediated information plays an important role, greater understanding is required of its impact on organisational sustainability. This paper examines the link between mediated information within a global economy and its relationship to a key to long-term organisational success– legitimacy. Aligning organisational legitimacy and the demands of a range of internal and external stakeholders is a central concern for managers when challenges to legitimacy continue to arise. Particularly during times of internally or environmentally driven change, challenges are created for managers seeking to ensure their organisation avoids questioning about its legitimacy. This paper presents the proposition that the perceptions of collective opinion derived from mass media provide a lens to a global world upon which managers base decisions to protect and repair organisational legitimacy. Legitimacy is determined from a broad social arena that can cross national and international boundaries (Lomi, 2000). Experience of legitimacy concerns, therefore, are often outside the traditional realms of managerial knowledge, and experience and of local business association networks (Aldrich, 1999). While the organisational landscape has been changing, at the same time, mass media have increased the focus on bringing news about events, and interpretations of events, from a broad and even global social area (Mutz, 1998). In addition, electronically facilitated media have exposed both organisational stakeholders and managers to views and interpretations of the world more quickly and more explicitly than in previous times. This paper proposes a relationship between perceptions of collective opinion derived from mass media and organisational legitimacy in such an environment.

Developing strong social enterprises : a documentary approach

Social enterprises are diverse in their mission, business structures and industry orientations. Like all businesses, social enterprises face a range of strategic and operational challenges and utilize a range of strategies to access resources in support of their venture. This exploratory study examined the strategic management issues faced by Australian social enterprises and the ways in which they respond to these. The research was based on a comprehensive literature review and semi-structured interviews with 11 representatives of eight social enterprises based in Victoria and Queensland. The sample included mature social enterprises and those within two years of start-up. In addition to the research report, the outputs of the project include a series of six short documentaries, which are available on YouTube at http://www.youtube.com/user/SocialEnterpriseQUT#p/u. The research reported on here suggests that social enterprises are sophisticated in utilizing processes of network bricolage (Baker et al. 2003) to mobilize resources in support of their goals. Access to network resources can be both enabling and constraining as social enterprises mature. In terms of the use of formal business planning strategies, all participating social enterprises had utilized these either at the outset or the point of maturation of their business operations. These planning activities were used to support internal operations, to provide a mechanism for managing collective entrepreneurship, and to communicate to external stakeholders about the legitimacy and performance of the social enterprises. Further research is required to assess the impacts of such planning activities, and the ways in which they are used over time. Business structures and governance arrangements varied amongst participating enterprises according to: mission and values; capital needs; and the experiences and culture of founding organizations and individuals. In different ways, participants indicated that business structures and governance arrangements are important ways of conferring legitimacy on social enterprise, by signifying responsible business practice and strong social purpose to both external and internal stakeholders. Almost all participants in the study described ongoing tensions in balancing social purpose and business objectives. It is not clear, however, whether these tensions were problematic (in the sense of eroding mission or business opportunities) or productive (in the sense of strengthening mission and business practices through iterative processes of reflection and action). Longitudinal research on the ways in which social enterprises negotiate mission fulfillment and business sustainability would enhance our knowledge in this area. Finally, despite growing emphasis on measuring social impact amongst institutions, including governments and philanthropy, that influence the operating environment of social enterprise, relatively little priority was placed on this activity. The participants in our study noted the complexities of effectively measuring social impact, as well as the operational difficulties of undertaking such measurement within the day to day realities of running small to medium businesses. It is clear that impact measurement remains a vexed issue for a number of our respondents. This study suggests that both the value and practicality of social impact measurement require further debate and critically informed evidence, if impact measurement is to benefit social enterprises and the communities they serve.

Designing disruption : linking participatory design and design thinking in technology orientated industries

A vast proportion of companies nowadays are looking to design and are focusing on the end users as a means of driving new projects. However still many companies are drawn to technological improvements which drive innovation within their industry context. The Australian livestock industry is no different. To date the adoption of new products and services within the livestock industry has been documented as being quite slow. This paper investigates how disruptive innovation should be a priority for these technologically focused companies and demonstrates how the use of design led innovation can bring about a higher quality engagement between end user and company alike. A case study linking participatory design and design thinking is presented. Within this, a conceptual model of presenting future scenarios to internal and external stakeholders is applied to the livestock industry; assisting companies to apply strategy, culture and advancement in meaningful product offerings to consumers.

The risks and returns of new public management : political business

Purpose – This article aims to consider success in terms of the financial returns and risks of new public management (NPM) in state-owned enterprises (SOEs). Design/methodology/approach – Financial returns of New Zealand SOEs were examined through a review of their annual reports over a five-year period. Dimensions of risk were examined through interviews conducted in two phases over a two-year period with senior executives from 12 of the (then) 17 SOEs operating in New Zealand. Findings – Findings indicate the potential for SOEs to operate as profitable government investments, with clear support for positive financial returns under NPM. However, variations noted within individual SOEs also indicate that profitable and commercial operations may not be possible in all cases. An examination of the risks associated with SOEs’ operations reveals a number of dimensions of risk, encompassing financial, political (including regulatory), reputational, and public accountability aspects. Practical implications – There is a need for an enhanced awareness on the part of internal and external stakeholders (such as the government and general public) of the risks SOEs face in pursuing higher levels of profitability. Also required, is a more acute understanding on the part of internal and external stakeholders (e.g. government and the public) of the need for SOEs to manage the range of risks identified, given the potentially delicate balance between risk and return. Originality/value – While previous studies have considered the financial returns of SOEs, or the risks faced by the public sector in terms of accountability, few have addressed the two issues collectively in a single context.

The contribution of leadership attributes to large scale, complex project success

Mismanagement of large-scale, complex projects has resulted in spectacular failures, cost overruns, time blowouts, and stakeholder dissatisfaction. We focus discussion on the interaction of key management and leadership attributes which facilitate leaders’ adaptive behaviors. These behaviors should in turn influence adaptive team member behavior, stakeholder engagement and successful project outcomes, outputs and impacts. An understanding of this type of management will benefit from a perspective based in managerial and organizational cognition. The research question we explore is whether successful leaders of large-scale complex projects have an internal process leading to a display of administrative, adaptive, and enabling behaviors that foster adaptive processes and enabling behaviors within their teams and with external stakeholders. At the core of the model we propose interactions of key attributes, namely cognitive flexibility, affect, and emotional intelligence. The result of these cognitive-affective attribute interactions is leadership leading to enhanced likelihood of complex project success.

Learning or legitimacy? an exploration of business planning amongst Australian social enterprises

In recent years, the value of business planning for new business ventures and small firms has been the subject of debate amongst entrepreneurship researchers (Brinckmann et al 2010: 24). Drawing on institutional theory, a number of writers suggest that business planning is primarily used to confer symbolic legitimacy on businesses seeking investment and engagement from external stakeholders ( Karlsson & Honig 2009; Zimmerman & Zeitz 2002; Delmar & Shane 2004). In this sense, business planning may not have any significant effects on firm learning, but may be used as evidence of good business operations in order to attract external resources. Meta-evaluation of the available empirical literature contests this proposition, finding that both the symbolic and organisational learning effects of business planning influence small firm performance (Brinckmann et al 2010: 36) While social enterprise – which we define as organisations that exist for a public or community benefit and trade to fulfill their mission - the study of social enterprise is a nascent and pre-paradigmatic area of inquiry (Nicholls 2010). As a consequence, there has been relatively little empirical analysis of the nature or effects of business planning amongst social enterprises (for two exceptions, see exploratory studies by Hynes 2009 and Bull & Crompton 2006). In this paper, we examine business planning practices amongst Australian social enterprises. Drawing on a survey of 365 social enterprises conducted in 2010 and in-depth interviews with 11 social entrepreneurs and managers from eight social enterprises, we find that social enterprises report being more actively engaged in business planning activities than their mainstream business counterparts. Our exploratory research suggests that both legitimacy and learning drive business planning amongst social enterprises, although legitimacy is the stronger driver. Our results also suggest that, as multi-stakeholder businesses led by mission, business planning can serve unique communicative and relational functions for this business type.

Corporate profit and impression management in developing markets

In this study, we examine how organisations in Fiji communicate or legitimise their profit. We base the need for understanding this phenomenon on the following premise. Organisations are part of a wider society, and in competition for scarce resources. Organisations obtain the rights to consume resources upon conception, but must continually legitimise their rights of existence and the need to access the resources. Legitimacy is the ability to continue to justify one’s authority to exist in a society. Organisations rights to resources are contractual, and have a moral obligation to act in a responsible manner and justify their outcomes, actions, and activities to external stakeholders. Such justifications would be an attempt at legitimizing their existence by some form of impression management. Impression management refers to the process by which individuals attempt to influence the impression of others (Melo et al. 2009). In corporate reporting, impression management occurs when management selects, display, and presents that information in a manner that distorts readers’ perceptions of corporate achievements (Neu 1991; Patten 2002), and is managed best through disclosures (O’Donovan 2002). In developing economies, there is significant Government protection that creates near-monopoly sectors and industries. The rendered protection permits organisations to provide essential services to the community at reasonable costs. Organisations in these sectors and industries have an ominous need to legitimise their position and actions. The bond between the organisations and the society is much stronger, making organisations devote more effort in communicating their activities. Protection permits organisations to make reasonable profits to sustain their operations. Society may not accept abnormal profits from operational efficiencies. Profit is fundamental to the society’s perception of an organisation, amplifying the need for the firm to justify a level of profit. Abnormal profit for organisations construes bad news, and organisations would make relevant disclosures to manage stakeholder impressions on profit (Patten 2002). Organisations can manage impressions by disclosing information in a particular way. That is, organisations would want to put the impression that the abnormal profit is justified and the society will obtain its benefits in future. Such form of impression management requires unambiguous disclosure of information. The readability of corporate disclosures is an important indicator of organisational abnormal profit-related legitimacy efforts in developing economies.

Not-for-profit ratios for financial resilience and internal accountability : a study of Australian international aid organisations

Not-for-profit (NFP) financial ratio research has focused primarily on organisational efficiency measurements for external stakeholders. Ratios that also capture information about stability, capacity (liquidity), gearing and sustainability, enable an assessment of financial resilience. They are thus valuable tools that can provide a framework of internal accountability between boards and management. The establishment of an Australian NFP regulator highlights the importance of NFP sustainability, and affirms the timeliness of this paper. We propose a suite of key financial ratios for use by NFP boards and management, and demonstrate its practical usefulness by applying the ratios to financial data from the 2009 reports of ACFID (Australian Council for International Development)-affiliated international aid organisations.

Influencing innovation in SME’s : from designer to transitional engineer

The following paper presents insights found during an ongoing industry engagement with a family-owned manufacturing SME in Australia. The study seeks to unpack cultural, strategic, product opportunities and challenges available to the firm engaging in a design led approach to innovation. Design led innovation finds new market opportunities to innovate through a holistic perspective of both the internal business operations, focusing on the customer experience and external stakeholders. The action research based methodology consisted of 25 semi-structured interviews, a reflective journal and focus group, all of which were analysed thematically. This paper focuses on the resultant themes of the focus group data constituting a discussion around the best strategies to try and integrate design thinking as a fundamental skill across the company. The main thematic results included the participant’s limited views of themselves (in current roles) as being to create ‘buy-in’ to change initiatives, a preference to act as a group to gain traction in the firm, importance of better defining the problem before reaching a design solution and lastly the time required to implement versus the need for change. These findings are valuable in assisting other family owned firms in managing core growth activities with design and innovation initiatives, particularly in the area of new product development.

The great divide : bridging the gap

Learning Objective: To describe a collaborative system of clinical allocations using a dedicated, discipline specific administrative coordinator. Methods: The Clinical Placement Coordinator is the liaison person between the student, the academic staff and the clinical sites, and fills an important role in bridging the gap to enhance the student learning experience. With this in mind the Coordinator is very discipline focused and works closely with the academic staff who coordinate the clinical units within the program. This person is the ‘‘face’’ of QUT to the external stakeholders, and ensures that all parties experience a smooth process. This no mean feat given that there are over 350 students to be placed annually, across 14 separate clinical blocks ranging from 1 to 6 weeks in length at various sites. The processes involved in clinical placement allocation will be presented, and the roles of the staff in facilitating students’ placement preferences and matching with clinical site offers will be described. In many allied health programs in Australia, the clinical placement activity is carried out by an academic member of staff. However, this can result in delays in communications due to other workload requirements such as lecture, tutorial and practical class commitments. Having a dedicated knowledgeable administration officer has resulted in a person being available to take calls from clinical staff, meet with students to discuss allocation needs and ensure that academic staff are consulted if and when necessary. The Clinical Placement Coordinator is very much a part of the course team and attends professional meetings and conferences as an avenue of networking and meeting clinical staff. Results: The success in having a dedicated administrative officer as the Clinical Placement Coordinator acting as the conduit between academic staff and students, and the university and clinical staff has been highly successful to date. This was noted in commendations from the 2010 Course Accreditation Panel Report which stated: ‘‘The very positive perception in the professional community of Ms Margaret McBurney’s effective and efficient organization of student clinical placements. Students and clinical professionals commented favourably on the approachability of staff. There is confidence that program staff will follow up on issues raised urgently in clinical centres.’’