The following are the stages in developing a Cubic Business Model based Group Chart of Accounts:
A Cubic Business Model based Group Chart of Accounts comprises Divisions (legal or operational entities), Locations, Functions, the Master Chart of Accounts and the final enterprise Chart of Accounts – development each of these components takes time.
Division definition may be trivial for a small uncomplicated enterprise but may require several iterations for a larger multi-divisional enterprise – the Divisional hierarchy must accurately model the logical structure of the entire organization.
3. Locations – WHERE we DO what we do
Location definition – where we do what we do – is frequently more complex than expected as different executives and managers may have different views of how best to model the enterprise. If well managed with all the right people in the room three iterations will generally suffice. For a large complex organization such as an enterprise with a number of large and complex mines or factories the Location model design with plenty of room for growth is critical.
4. Functions – WHAT we do
Function definition – what we do – can become significantly complex and challenging to develop as a single holistic model that accommodates the complexities of all divisions in a logical structure that will accommodate all foreseeable growth. Three to five iterations may be required. For a large and complex organization with different business units each of which has very different business functions the development of the overall Function model with plenty of room for growth is critical.
5. Size and complexity
The Master Chart of Accounts can easily run to 1,000 to 3,000 accounts including headings depending on the size and complexity of the enterprise. As many as 5 to 10 iterations and possibly 2 or 3 restarts / restructures will be required at the final Master Chart for a large enterprise in order to effectively model the full complexity of the organization. With large and complex enterprises the development of a comprehensive holistic Chart of Accounts that handles current complexities and provides sufficient space for foreseeable future growth is time consuming but critical.
6. Standard account blocks
Development of master personnel cost blocks, master asset cost blocks, master product cost and revenue blocks, master project blocks, master customer blocks, etc as applicable to any particular enterprise, are also significantly time consuming. These blocks must be harmonized and integrated with all other modules in the ERP and associated systems. This harmonization can take a significant number of iterations.
7. Cross ticking with existing Charts of Accounts
The above stages will be accompanied by one and possibly two cross ticking exercises against the existing Charts of accounts in order to ensure that the Master Chart caters for all foreseeable Locations, Functions and Accounts. The Master Chart is the heart of the solution, it is not finished till it is finished – the cross ticking should take place after about 3 or 4 iterations in the design of the Master Chart and this may trigger significant restructuring if elements have been overlooked – the quality of the early stage input has a huge impact on the extent to which this ticking exercise is a formality or a major painful restructuring.
8. The Location à Function Matrix
Developing the full matrix of the face of the Cubic Model will typically take at least 2 and possibly 3 iterations to fully model the real complexity of the business in terms of Locations and Functions and generally stimulates discussion in depth regarding the real world governance and logic of the business – executive involvement at this stage is vital as this model will determine the default management model going forward.
The creation of the individual sub-Charts of Accounts for each Location-Function cell on the matrix will require a minimum of two and possibly three iterations to ensure that exactly the right accounts are allocated to each cell from a perspective of the real world governance of which manager or supervisor can incur costs and generate revenue against that cell – the precision of this mapping has major implications for the effectiveness of overall corporate governance that is supported by the Cubic Business Model Chart of Accounts.
10. Mapping of old accounts to new accounts
The final mapping of old accounts onto new accounts will typically require a minimum of two and possibly three iterations to ensure that all old accounts are properly catered for – the more precise the ticking during the earlier stages of the design of the Chart of Accounts the quicker and easier the final mapping will be.
Once all the above have been done the Final Chart is ready for deployment – typically in the first instance into a Data Warehouse rather than into the operational ERP.
12. Financial Statements
Associated with this a complete set of standard financial statements must be produced together with a comprehensive analytical model in the data warehouse and business intelligence environment together with specialist economic and other models – these components collectively represent further time and cost investment but are the elements that deliver the value to the business at the end of the day.
We are have recently commenced work on developing a suite of tools and models that we term “The JAR&A Analytical Financial Suite” – see separate information sheets.
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Business Systems NOT delivering?
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Dr James A Robertson -- has been involved in the effective application of Business Information Systems, including but NOT limited to ERP, since 1987 and in the profitable and effective use of computers in Business since 1981.
Drawing on a diversity of experience, including formal military training in Quick Attack techniques at the Regimental Commander level, Dr Robertson has developed highly effective methods of investigating any sub-optimal Business Information Systems situation -- be it an established system or a stalled project or any other source of Executive frustration -- quickly and concisely diagnosing the root cause of the problem and prescribing concise practical actions that Business Executives can effectively act on see the Pulse Measurement page and also the Sample Reports page for redacted real reports.
He has also developed highly effective methods of strategically enriching systems to unlock the full potential of existing investments, see the Precision Configuration page and couples this to architecting small pieces of clever software that harness the full potential of your investment, see the Software page.
If you are having problems with your systems, your project or your IT Department, call The Business Systems Specialist
Business System Failure is RIFE -- we offer insight into why this happens AND WHAT is required to prevent it.
Failure is at epidemic levels with massive damage done to client companies -- if you are NOT aware of the extent of the problem please visit the About Failure page for a catalog of major failures running to billions of Pounds and Dollars.
All evidence indicates that the established players do NOT know how to deliver stable, reliable high value solutions that WORK.
There HAS to be a better way!
This website provides information relating to that way with a large collection of white papers, presentations, standards documents, etc that you can use to start bringing the situation under control
We also offer high level advisory services with regard to the application of the principles advocated on this website
We offer an ENGINEERING APPROACH to addressing these issues
By Engineering I mean the formal, structured, highly disciplined, highly systematic, highly practical approach that consistently delivers results in ALL areas of human endeavor where formally trained and certified engineers are the ONLY practitioners permitted to operate -- think large buildings, factories, motor vehicles, aircraft -- highly complex systems that work at a level that we take it for granted that they WILL work and where failure is all but unthinkable and, when it happens, attracts immediate public attention and rigorous investigation directed at ensuring that such failures are prevented in the future -- in fact, everything that the management consulting industry that implements complex software systems is NOT
This approach is discussed further on the Engineering Approach page.
In 2003 I undertook an in-depth analysis of all the information and experience that I had gathered with regard to the factors giving rise to Business Information System failure including ERP and general IT and classified this information into a number of categories including "The Factors Causing Failure" and "The Critical Factors for Success" based on this I developed a two day Course "The Critical Factors for Information Technology Investment Success" which is still offered today.
Based on this I wrote the book of the same name, which is available in electronic form here for download:
James has a very detailed profile on LinkedIn should you require further information about him.
You can also connect with him on LinkedIn at http://www.linkedin.com/in/DrJamesARobertsonERPDoctor
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There is a large body of white papers, articles and other content produced by Dr James Robertson available on this website
Please click here to visit the detailed listing of articles
There is a more detailed version of this document at the end of this page for larger projects with a more detailed procurement process
About Dr James A Robertson PrEng -- The Business Systems Doctor -- and Other Topics
Catalogue of Major Business Information System Failures
About the Engineering Approach
James Robertson's Value Add
Attributes of a HIGH VALUE solution
Recognizing Business System Failure
The Critical Human Foundation
Old Software IS Viable
From South Africa
Competencies of Dr James A Robertson PrEng
About Professor Malcolm McDonald
Table of Contents
About my relationship with the Almighty Creator, Yah the Eternally Self-Existing
Comments relating to the Business Systems Industry and other topics
Testimonials and other positive material regarding James Robertson
List of Articles
Achieving High Value Business Information System outcomes
Executive Custody -- What is it and HOW do you get it?
The REAL Issues in Integrated Business Information System Success
Part 1: Introduction
Part 2 -- Mythology and Lack of Executive Custody
Part 3 – Strategic Alignment and Precision Configuration
Why your ERP is NOT delivering and HOW to FIX it
IT Project Management
CEO Anthony Lee Comments on his experience of the Pulse Measurement
No Charge Guarantee on the Pulse Measurement Service
Examples of Pulse Measurement Outcomes
Critical questions regarding the Pulse Measurement™
The Pulse Measurement Workflow
The Critical Factors for Business System (ERP+) Investment Success in the Pulse Measurement
Indicative Pulse Measurement Durations
What is a JAR&A Pulse Measurement?
Survival of the fittest – why it makes sense to measure the pulse of your business
Examples of Pulse Measurement Outcomes over 24 years
Sample Pulse Measurement Reports
Strategic Essence: The Missing Link in Business Information Systems
Strategic Essence: Overview
Strategic Essence: Part 1 -- Strategy Defined
Strategic Essence: Part 2 -- Differentiation
Strategic Essence: Part 3 -- The Essence IS Different
Strategic Essence: Part 4 -- The Essence should be the Point of Departure
Strategic Essence: Part 5 -- Discovering Strategic Essence
Strategy -- the Essence of the Business: What is it and how do you develop actionable strategic plans?
Simple Steps to Increase the Strategic Value of your ERP Investment
Free Strategic Snapshot Toolset and Manual
A strategy focused planning system beyond traditional budgeting
Tough IT and ERP Procurement and Contracting that Works
Robust Business Systems Procurement
Part 1 -- Introduction
Part 2 -- Bill of Services, Laboratory, Go-live Certificate, etc
Part 3 -- Executive Engagement, Bid Compliance, Adjudication and other matters
Guidance and Advisory Services
The Art of Project Leadership
Why Regular Communication with the CEO is Vital
The Business Simulation Laboratory
Precision Configuration and Strategic Business Information Architecture
Precision Configuration based on Strategic Engineered Precision Taxonomies
The JAR&A Cubic Business Model
Highly Structured Strategic Chart of Accounts -- a Vital Element of your Corporate Information Arsenal
The Product Catalogue -- an Essential Element of any Precision Configuration
Attributes -- answers to the questions you have NOT yet thought to ask
Case Studies of Notably Successful Projects with high value Precision Configuration
092 Doing things differently and better -- ASCO Case Study 2-- BPM Summit 2013
088 Strategic ERP Invesment -- ASCO Case Study -- Service Management Conference and Exhibition Africa
026 Information Architecture and Design of FIS for Rennies Group -- Financial Information Systems Conf
018 CRM Risk Control: Designing and Implementing an Integrated Risk Mgmt Sys -- Integrated Risk Mgmt Conf
011 V3 Consulting Eng: Benefits of MIS to Professional Practice -- SAICE 15th Ann Conf on Computers in Civil Eng
Strategically Enriching your Business Information Systems
Part 2 -- Principles of Data Engineering
Part 3 -- Steps in applying these recommendations
Simple Steps to increase the strategic information value yield from your Business Systems Investment
The Full JAR&A Taxonomy Manual
Part 1: Introduction, Problem Statement, Definitions and Examples
Part 2: Why Use JAR&A, Required Knowledge and Experience, Cubic Business Model and Chart of Accounts and Taxonomy Software
Part 3: How to do it, Case Studies and White Papers and other References
Example General Ledger Manual
Business Process -- Irrelevant, Distracting and Dangerous
The RIGHT Approach
Custom Strategic Software Design and Oversight of Construction
Standards for Custom Software Specification
What IS Software?
Critical Factors for I.T. Success
A Moral and Ethical Dilemma -- Systems that Fail
Case Studies examining Business Information System failures
The BBC Digital Media Initiative Debacle
The Bridgestone -- IBM Conflict
Speaking and Training
Showcase of Conference Presentations
Most Viewed Presentations
Briefings and Seminars
Why your ERP/BIS is NOT delivering and HOW to FIX it
ERP and IT Procurement that Delivers Results
The Critical Factors for IT and ERP Investment Success
Conferences and Public Presentations
Conferences 80 to 99 -- 2009 to Present
Conferences 60 to 79 -- 2005 to 2009
Conferences 40 to 59 -- 1996 to 2005
Conferences 20 to 39 -- 1994 to 1996
Conferences 01 to 19 -- 1989 to 1994
On-Line Seminars (Webinars)
Webinar on Preparing and Presenting Webinars
Contacting James A Robertson and Associates Limited