Barriers to customer-oriented management accounting in financial services

In the retail financial sector competitive pressure seems to challenge trad itional management accounting systems, which often do not allow the identif ication of profitable customer relationships. Drawing on a stage model and data from management accountants, branch managers and frontline employees i n Danish financial service companies, this article investigates barriers to the implementation of customer-oriented management accounting. The article documents how financial institutions are increasingly integrating manageme nt accounting systems with customer-related activities thus enabling custom er profitability analyses. However, several barriers related to organizatio n structure, resources and attitudes hamper further customer-oriented chang es. Data gathered at the branch level strongly indicate problems of ownersh ip and project sponsoring and it is argued that new accounting systems may be less important to customer orientation than empowerment and goal-oriente d participation of the frontline employees.