World Vision Australia: Strategic Management Accounting Report

This report provides a comprehensive analysis of World Vision Australia's strategic management accounting practices. It begins with an executive summary and an introduction to the organization, its mission, and its focus on improving the lives of vulnerable children globally. The report outlines World Vision Australia's key long-term objectives, including ensuring the wellbeing of children, supporting local communities, and creating change in various areas such as education and health. It identifies key stakeholders, with vulnerable children being the primary clients. The report then explores the application of a balanced scorecard, emphasizing the customer/client perspective. A strategic map illustrating the relationships between objectives is also presented. Finally, the report analyzes the challenges associated with implementing a balanced scorecard, such as internal focus, poorly defined metrics, and data collection issues, drawing on relevant literature and studies to support its findings and concluding with recommendations for improvement.

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STRATEGIC MANAGEMENT ACCOUNTING
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STRATEGIC MANAGEMENT ACCOUNTING
Executive summary
World Vision Australia is an ecumenical Christian organization which is headed by the
World Vision International whose main objective is build a better world for children all over the
globe. The purpose of this report contends on the key long term objectives of World Vision
Australia. The paper further looks into stakeholders of the organization where the key
stakeholder or client has been identified in the study as vulnerable children. The case of World
Vision Australia has also been discussed in accounting perspective where the idea scorecard and
strategy map has been discussed in relation to the case study. With reference to various studies
the study has identified various issues which may be challenges for scorecard implementation by
the management of World Vision Australia.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
1.0 Objectives and key stakeholders of World Vision Australia.....................................................4
1.1 Stakeholders...........................................................................................................................6
2.0 Scoreboard perspective suitable for the case.............................................................................6
2.1 Customer/ client perspective..................................................................................................6
3.0 Strategic map indicating the relationship between the objectives.............................................7
4.0 Analysis of the issues concerning the implementation of the balanced scorecard by the World
Vision Australia...............................................................................................................................8
Conclusion.......................................................................................................................................9
References........................................................................................................................................9

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Introduction
The World Vision Australia is a non-governmental organization which is based in
Melbourne Australia and makes a larger part of the World Vision Partnership which is headed by
World Vision International. World Vision Australia is also an ecumenical Christian organization
dedicated to the betterment of the world, making the glob sustainable for every individual but
majorly focuses on improving children’s lifestyle all over the continent. World vision Australia
serves globally, the organization is currently serving in fifty eight nations with their main vision
being provision for every child, life in all its fullness for everyone. The main method used by the
organization to meet its obligations and missions is transformational development via emergency
reliefs, advocacy, policies and community development. The content of this paper however,
takes a different perspective where the main concern of the study relates to accounting and
management part of the organization. The paper discusses various long term objectives of the
organization together with the key stakeholders of World vision Australia. The content of the
report further provides in-depth and comprehensive discussion with regards to application of a
balanced scoreboard, strategy map and its implication. The content concludes with the analysis
of various issues surrounding the implementation of a balanced scoreboard.
1.0 Objectives and key stakeholders of World Vision Australia
World Vision Australia as already mentioned is obligated to make the world a better and
a fairer place for children especially the most vulnerable children all over the globe. While the
extreme poverty rate is slowly declining all over the globe, majority of the children all over the
world still have no access to a better life as they cannot afford the most essential life
requirements. These essentials include water which is safe, proper education as well as good
health and nutritious diet. The organization has therefore various goals to achieve prior to the

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year 2021 (Kaplan and Norton 2010). The number one goal of the World Vision Australia is to
ensure that the ongoing wellbeing of the twenty million children is achieved by 2021 and the
ability of the organization to achieve this is based on decades of experience. According to the
management of the organization for the organization to achieve this key objective by the year
2021 they have to focus on the betterment of the whole world. To change the life of a child, the
community life must change as well as the life of the families with vulnerable children (Niven
2016). This therefore brings World Vision Australia to other objectives towards making the
world a better and a fairer place for the children.
Another long term objective or goal of the World Vision Australia is to support local
communities in order to comprehensively and effectively change the life of children all over the
world. To achieve this long term goal, the organization has partnered with various groups of
people and organizations in different locations known as Development Programs. These groups
work together with the community by helping the community to define their goals as well as help
them drive their development.
The third goal of the organization is to create change in all work areas. To achieve better
life for the children real change means tackling all the complex and connected causes of poverty
such as providing clean water and improving sanitations as well as hygienic practices. In terms
of education, the organization is objected to improve access to education around the world
(Niven 2016). The organization has also a goal to reducing preventable deaths and improvement
of women and children’s health through application of high impact innovations in the health
sector and lastly in the World Vision Australia has a goal to improve people’s livelihood so that
they can increasingly provide for their children in the future.

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1.1 Stakeholders
The organization has various stakeholders who are located all over the world.
 The key stakeholders in the organization are the vulnerable children World Vision
Australia support all over the continent. Children are the major clients of the
organization as most of the activities undertaken by the organization are meant to
support the children.
 Another major stakeholder is the local communities especially the poor
 Development program groups
 Financiers
 The board of the organization
 Employees
 Emergency agencies
 Global partnerships
2.0 Scoreboard perspective suitable for the case
2.1 Customer/ client perspective
Based on the type of operations handled by World Vision Australia as an organization, the
best perspective of the scoreboard that can be applied is the client perspective. The customer
perspective is all about how the clients of the organization perceive it and the position of the
organization in meeting the client desires in order to meet the financial objectives (Niven 2016).
The customer perception is always based on the time of performance, the quality of performance
and the cost of operations.
Objectives Specific measurement
New supports programs Level of impact of the programs

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Responsive service supply Timely delivery
To be preferred supply Share of key accounts
Client partnerships Number of global partnerships
The table above outlines specific measures that majority of the World Vision Australian
clients may need. Most of the clients in relation to various studies have similar objectives which
have similar specific measures as outlined above. The creation of new programs by the
organization is one of the client objectives, this objective is always measured by the percentage
of sales but in this case the specific measure of the new programs is the level of the impact to the
local community (Niven 2011). Another objective is the responsive service supply which is
measured by timely delivery of the services. The third objective is the preferred supply which is
measured specifically by the share of the key accounts and finally the last objective is the client’s
partnerships which is measured by the number of global partnerships.
3.0 Strategic map indicating the relationship between the objectives
Strategies can be articulated in terms of a meaningful strategy map which indicates the
relationship between the objectives. The top objectives can be expressed in terms of growth and
profitability and the goals can be translated into more concrete terms of progress (Niven 2015).
The objectives within the scorecards can be cascaded to make the translation of possible
strategies.

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4.0 Analysis of the issues concerning the implementation of the balanced scorecard by the
World Vision Australia
According to various literatures and studies, implementations of scoreboard comes with
various challenges. These problems affect most of the organizations and World Vision Australia
is one of the firms facing the scoreboard implementation.
Too much internal focus
One of the main challenges faced by the organization is too much internal focus which is
encouraged by scoreboard. This problem occurs as many of principles focus on the internal
principles within the internal environment of the organization (Makhijani and Creelman 2011).
The organization can avoid this problem through the application of SWOT analysis. Through the
application SWOT analysis, the organization can develop a more holistic approach to develop a
balanced metric system.
Poorly defined metrics
Developed metrics should be relevant and clear understandable to everyone. The metric
should be depicted with visual indictors which can easily be understood by everyone within the

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organization. Most of the stakeholders within World Vision Australia may not be able to
understand poorly defined metrics and this may be a problem to the implementation of a
balanced metrics. In order to overcome this challenge the organization may should develop a
sloppy and well defined metrics which is not vulnerable to critics and understandable to all
parties (Makhijani and Creelman 2011).
Lack of effective data collection and reporting
The organization being a non-profit making organization is likely to have poor financial
reporting system or may overemphasize on the collection of financial metrics at the expense of
other simple issues and this may be a challenge to the implementation of the a balanced
scoreboard (Pham-Gia 2009). The organization should adopt proper system for automation data
collection and subsequent reporting. According to various studies it is evident that most of the
organization with a good data collection and reporting system maintain better performance.
Conclusion
The application of a balanced scorecard by World Vision Australia can increase their
success in the future. The organization should come up with data collection and reporting
system which will ensure efficient implementation of a well balance metrics. The good
performance of any organization with reference to the above discussion may be as a result of a
balanced scorecard which indicates the organizational performance as seen in the case above. It
therefore advisable for organizations to adopt the use of a scorecard with a well-developed
financial metrics.

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References
https://www.worldvision.com.au/
Kaplan, R. S., and Norton, D. P. 2010. The balanced scorecard: translating strategy into action.
Boston, mass, Harvard business school press
Makhijani, N., and Creelman, J. 2011. Creating a balanced scorecard for a financial services
organization. Singapore, wiley.
Niven, P. R. 2011. Balanced scorecard step-by-step for government and nonprofit agencies.
Hoboken, wiley.
Niven, P. R. 2015. Balanced scorecard diagnostics: maintaining maximum performance.
Hoboken N.J., J. Wiley.
Niven, R. R. 2016. Balanced scorecard step-by-step maximizing performance and maintaining
results. Hoboken, wiley.
Pham-Gia, K. 2009. Balanced scorecard - solving all problems of traditional accounting
systems?