Pierre Berhin, international fund manager
"I just read Chapter Four . . . extremely interesting and very much in tune with the needs of companies today. Especially the parts about baseline reporting, business definition, and client relationships. It is amazing how many important international companies that I have done consulting for have such internal disasters going on and apply very little of the concepts that you speak of. I believe your book will be received very well and hopefully be placed on required reading lists for business students around the world."
Christian G. Foucher, international business consultant performance management specialist
"A true enterprise risk management process. Not only should this book have an impact on how society and commerce look upon how we create, preserve, lose, or destroy value and how we account for our business activities, but also on the way we perceive and react to risks and opportunities. Through their teachings and business practices, the authors have significantly changed my own perception of the vast variety of factors and circumstances (risks) that may threaten the health and well–being of organizations."
Per E. Aakenes, Chairman The Swedish Risk Management Association
"Accounting specialists know that traditional accounting concepts are no longer adequate to describe today′s companies, but for the most part they, and corporate managements themselves, have nothing to replace the current system. Now, along come Hans V. A. Johnsson and Per Erik Kihlstedt with Performance–Based Reporting, a clear and convincing description of why the old system can′t work and what system can."
Peter J. Wallison, Resident Fellow American Enterprise Institute
The successfully proven alternative system for relevant business reporting through performance management
Performance–Based Reporting shows businesses how traditional accounting fails to provide meaningful measures for performance and presents radically innovative and thoroughly tested methods for performance–oriented management, assessment, and reporting. Twenty–five years in the making, this helpful book also presents The Baseline Approach to management, assessment, and reporting composed of eighty–percent accounting–free methods.
Performance–Based Reporting presents the culmination of intense experiments involving more than 1,500 businesses and over 4,000 executives. It definitively proves the need for new tools for realistic business planning and management in an unpredictable world. These tools already exist, and this helpful guide walks readers through the process of implementing them to help firms improve their ability to predict the direction they should take in the future.
PART I: NEW REPORTING NEEDS FOR A NEW TIME.
Chapter 1: Accounting Crisis or Crime?
The Accounting Tradition.
The Ethics of Accounting Illegal, Immoral, or Indifferent?
A Case for Change.
The Value Mess.
Chapter 2: When Accounting Meets a New Reality.
The World in the Twenty–First Century.
Accounting and Accountability in the Fourth Economy.
How to Succeed in The Age of Discontinuity .
How to Succeed in an Age of Mind–Based Wealth Creation.
How to Succeed in an Age of Interdependence.
Chapter 3: The Search for Adequate Reporting.
The Need for Alternatives.
Early Efforts: The Scorecards Approach.
The Challenge in Practice: Combining a Broad, All–Inclusive Perspective with a Manageable Number of Factors.
Back to the Crucial Question: What Makes Companies Fail or Prosper in the Twenty–first Century?
Chapter 4: Transparent Reporting Based on Today s Fundamentals.
Reporting to Support Performance, Disclosure, and Strategic Decision Making.
Why the Four Fundamentals?
Summing Up the Baseline Reporting Model.
PART II: IT CAN BE DONE!
Chapter 5: Business Planning in an Unpredictable World.
Business Planning and Enterprise Risk Assessment.
A Change of Perspective: Planning for an Unknowable Future.
Money to Green : Investing in Freedom to Act.
Chapter 6: Where Was the Board?
A Five–Step Boardwalk.
The Baseline Approach to Corporate Governance.
Chapter 7: Due Diligence or Undue Negligence?
The Fine Line Between Success and Failure in Mergers and Acquisitions.
Wanted: A New Kind of Due Diligence.
Why Mergers Fail.
How Does the Baseline Approach to Due Diligence Work?
Chapter 8: Fair and Meaningful Disclosure.
Reporting and Communicating for Accountability, Reputation, and Relevance.
Transparency, Disclosure, and Relevance.
A Matter of Restoring Confidence.
The Baseline Approach to Fair Disclosure and Meaningful Corporate Reporting.
Chapter 9: Auditing and Risk Management in a New Situation.
Risk Analysis and Management in Unpredictable Times.
How Serious is the Auditing Crisis?
The Baseline Approach to Auditing and Risk Management.
Chapter 10: What Are We Lending Against?
Financing, Lending, and Investment Decisions in the Fourth Economy.
Accountability in Lending and Financing.
The Baseline Approach to Lending and Financing Decisions.