An analytical tool to aid the reflective selection of equity investments

Purpose: The problem the allocator of financial capital has to deal with is that asset selection decisions need to be made today based on uncertain future expectations derived from accounting measurements and estimations produced in the past which are vulnerable to error and creative accounting. The research looks at how this problem has been dealt with in the academic and professional literature and develops a new tool leveraging both quantitative methods and the reflective practitioner’s experiential intuition. Methodology design: A qualitative methodology based on real-world case study (Flyvbjerg 2011) and microanalysis (Strauss and Corbin 1998) is used to develop customised reflexive research tools to assess management success in allocating capital, and audit metrics to illuminate techniques used to conceal poor returns. Findings: Returns which failed to reach market indices or inflation were observed in the UK investment trust sector over the past ten years suggesting their customers’ capital lost value in real terms. Although Modern Portfolio Theory has useful insights, strong form Efficient Market Hypothesis is rejected as is the over-reliance on mathematical models most of which have been developed under non-realistic assumptions. Monte Carlo simulation was examined and used alongside experiential intuition (Burke and Miller 1999, Dane and Pratt 2007) to generate insights into future risk management priorities and also as a way of optimising portfolio weighting options. The use of Monte Carlo for risk analysis, while not new in the financial services industry, is less common in industry, which in turn served to generate client work and publication of findings during the research. In carrying out the research, data inquiry limitations and in some cases data, design and formulaic errors were found in the publicly available research databases. Therefore a customised accounting database was designed with which to carry out the real-world case studies, which in turn exposed usage of modified accounting bases, creative accounting (Griffiths 1992) and concealment of earnings fluctuations in the statement of comprehensive income (Athanasakou et al 2011). Conclusions: A customised accounting research database (CARD) is developed to provide a basis for conducting structured quantitative analysis based on DuPont (Brealey et al 2006), Graham (1976) and my own experientially derived metrics. This quantitative analysis is further supported with experiential intuitive unstructured inquiries in such areas as the likelihood of future returns, debt structuring risks, management orientation and so forth. Monte Carlo is used for estimating probable future outcome distributions and in optimising portfolio weighting. To further reduce the risk of incorrect decisions, a capital allocation policy is developed drawing from both the literature review (mainly Hertz 1964, Modigliani and Miller 1958, Buffett 1977 – 2012, Stiglitz 2010) and my own experiences. At each step in the analysis the practitioner has the opportunity to reflect on the data gathered and to formulate questions needed to address the knowledge gaps arising. The findings expose the care needed when analysing corporate financial data due to the vulnerabilities of financial databases to error as well as the vulnerabilities of published financial data to earnings management (Nelson et al 2002). The tools developed in the project place particular emphasis on data integrity through the use of both existing and new analytical and triangulation formulae

Embedding risk management within new product and service development of an innovation and risk management framework and supporting risk processes, for effective risk mitigation : an action research study within the Information and Communication Technology (ICT) Sector

At first glance, innovation and risk management seem like two opposing disciplines with diverse objectives. The former seeks to be flexible and encourages enhanced solutions and new ideas, while the latter can be seen as stifling such innovative thinking. Since there is a failure rate of as many as eight out of every ten products launched, it is perhaps necessary for organisations to consider applying more structured approaches to innovation, in order to better manage risks and to increase the chances of delivering improved goods and services. A risk management approach is well suited to address the challenge of failure, as it focuses not only on the negative impact of risks but also on the opportunities they present. It aligns these with the strategic objectives of the organisation to increase the chances of its success. The research objective of this study was to establish how to embed risk management within the innovation divisions of an organisation to ensure that more efficient products and services are delivered to customers. To achieve this end, action research was conducted in a large organisation operating in a high-technology environment that launches many diverse products and services and rapidly expanding service offerings to other industries. The study took four years to complete and delivered multiple interventions that successfully embedded risk management within the organisation, leading to changed behaviours and double-loop learning. Two main knowledge contributions are offered by the study. Firstly, a generic and empirically validated integrated Innovation and Risk Management Framework (IRMF) is developed and guides new product and service development by considering both best practices and risks. Secondly, a risk dashboard is designed as a design science artefact within the action research cycles, which consolidates all the knowledge that was generated during the study. This is ultimately a visual interface to support stage-gate decision making. Since the context of the study was broad, extensive and complicated, the use of mixed-method research complemented and expanded on the findings by providing another layer of support and validation. This thesis highlights the complexity of innovation and presents the need for an organising framework that will encourage innovation but is sufficiently flexible to cater for diverse needs and risks. The study delivers several other, valuable contributions regarding what, how and why incidents occur within the real-world context of new product and service development. Several generic artefacts, such as risk processes and maturity frameworks, are also developed, which can guide risk and new product and service development practitioners to deliver more efficient product and services. This study offers several novel approaches to evaluating risks and provides practical support and recommendations, addressing shortcomings of fragmented research in similar, but smaller-scale studies that have been conducted in information systems. It is the premise of this research that a much wider number of risks need to be managed as new products and services are developed, than was noted in previous studies. Effective risk management in new product and service development could lead to competitive advantage for organisations by increasing knowledge and facilitating sustainable, informed risk decision-making

Business Architecture Tool (BAT) : development and assessment of a systems framework to guide organisations from concept to delivery, in terms of creating deeper and meaningful integration across processes and functions

This thesis is based upon a prolonged research period, wherein a practical systems based tool (prototype), was researched, developed and tested, so as to gain outputs of integration improvements for service delivery in South Africa (SA) specifically, and in general for developmental economies. The research question can be summarised as: "to develop a systems-based intervention tool, able to provide practical integration improvements from concept to delivery". Existing systems methods and approaches were accessed, and based upon their utility for the local context, were used to varying degrees, in "building" the prototype, which was tested across a number of interventions, categorised under "world of the client"; and "world of the designer" (firm created for this purpose). Being aware of local and international implementation challenges by virtue of experience as consultant for a number of governments, whereby national planning and implementation techniques tend to be embed mechanistic models of thinking directly affecting how agents and agencies: understand the problem; plan to resolve the problem; and implement the designed solutions. The research sought to recover key systems insights in order to build a practical tool that could reduce negative outcomes, perpetrated by well-intended reforms, having limited integrative thinking, planning and delivery. The research required long-term observation, reflection, and extensive literature review. A distinctive feature of the research is the account of the author's exploration of his learning and development, within University of Cape Town PhD: Business Architecture embedded in complexity and systems theory

Towards the development of a COBIT 5-driven IT audit framework

In recent years, given the increased investments in Information Technology (IT), and its pervasive usage in business environment, the need to ensure that IT decisions are in the interest of shareholders led practitioners and researchers to focus on Enterprise Governance of IT (EGIT). EGIT involves implementing mechanisms that ensure that IT risks are duly mitigated, and that the IT investments are yielding the expected returns for enterprise owners. For the mechanisms to work as intended, there is the need for regular auditing; however, past literature and practitioner reports have confirmed that auditors do not audit governance mechanisms to the expectation of shareholders. Within the Ghanaian Financial services sector, failures in EGIT resulted in the collapse of several organisations which made stakeholders question the role played by auditors. The purpose of this study was to examine EGIT from the perspective of the auditor, develop an audit framework based on COBIT 5 and understand how auditors can be 'critical partners’ to ensure EGIT effectiveness. To provide a better understanding of the EGIT phenomenon, a theoretical framework based on the integration of six theoretical perspectives was presented to provide a holistic view of EGIT and how auditors can add value. The theoretical framework argued in line with organisational theorists that to achieve positive outcomes, governance mechanisms must be implemented in a coherent whole and analysed as a configuration. As such the study adopted the configurational theory to analyse the coherence of the governance mechanisms. Based on the theoretical framework and the configurational theory, a conceptual framework was developed to guide the research. The thesis proposed that the greater the level of coherence among the governance mechanisms, the higher the level of EGIT effectiveness, and that the audit of EGIT will improve the maturity of the governance mechanisms and its coherence. The pragmatic philosophic stance was adopted, utilising qualitative and quantitative methods to answer the research question. The Peffers, Tuunanen, Rothenberger, & Chatterjee, (2008) design science research methodology guided the identification of the problem and the development of an artefact that can aid IT auditors by providing them with an adequate scope for EGIT audits and reduce the audit detection risks. An Exploratory Focus Group (EFG) and a Confirmatory Focus Group (CFG) were employed in the development of the artefact. In addition, a survey instrument was utilised to gather data about the governance maturity of the case organisations prior to and after the usage of the artefact. Cluster analysis based on the concept of 'coherence as a gestalt’ produced cluster solutions revealing the nature of the configuration that resulted in positive outcomes. Post-Hoc analysis was used in the summative evaluation of the artefact to measure the statistically significant changes that occurred in the governance maturity after the use of the artefact. The findings revealed that regular auditing of EGIT mechanisms can lead to significant improvement in several governance mechanisms as postulated. It also revealed that to attain positive outcomes, there is the need for a coherent implementation of governance mechanisms with emphasis on technology which can be the driving force in a fast-changing environment. This result was contrary to existing literature about EGIT that suggested the overarching importance of leadership to drive change in the attainment of EGIT objectives. The findings show that with the right systems and technologies, IT can provide decision makers with timely information that would increase the utility of the decisions. The study makes significant contributions to knowledge by providing insights into EGIT and IT auditing which is an under-researched area. One key theoretical contribution was the integrative theoretical framework that provides theoretical underpinnings to EGIT, which has previously been studied descriptively and provides a holistic view of the complex phenomenon. The study also confirms the configurational theory and advances knowledge by proving that in the context of EGIT, the combination of the various mechanisms does influence the whole and the outcomes. Concerning the contribution to practice, the study resulted in the development of an IT auditing artefact that is based on COBIT 5, a widely accepted industry framework for EGIT, and contextualised with the regulatory needs of the Ghanaian Financial Services sector. With this tool, IT auditors can develop an audit plan that provides assurance of key governance areas and so reduce the audit risk of not detecting a non-existence or weak control in an organisation’s EGIT practices. The tool can be used by regulatory auditors who were complicit in the EGIT failures that occurred in the sector to provide adequate supervision. Further discussion on the theoretical, practical and methodological contributions are set out in this thesis along with the limitations of the study and recommendations for future research

Strengthening Language Instruction for Newcomers to Canada: Learning from Experiences in Saskatoon

The immigrant population in Saskatoon has grown in the past few decades. With the increase in the number of immigrants in Saskatoon, the federally sponsored program Language Instruction to Newcomers to Canada (LINC) has also been in demand. The purpose of this study was to establish ways in which LINC service providers in Saskatoon can support new ESL LINC instructors to excel in their careers. This study examined the experiences of these instructors in terms of what was expected from them at their workplace, the challenges they faced, and the supports they needed. This research was conducted as an intrinsic case study, considering Saskatoon as a complete case. The guiding theory for this research was the theory on organizational entry by Louis (1980). Due to pandemic, the data were collected through online one-on-one interviews and focus group discussions. The four overarching themes that emerged from the coded data were: motivation to join LINC, expectations from LINC instructors, LINC instructors’ experiences with instruction, and supports for new ESL LINC instructors. Findings of this study revealed that the new ESL LINC instructors face challenges, need guidance in understating the LINC system, and require technical and moral supports. To assist the new LINC instructors in their career, the recommendations are to assign one-on-one mentoring, to offer an annual refresher on CLB and PBLA, to boost the technical support in LINC classrooms, to equip the new instructors on the software and applications being used in LINC classrooms, to consider new LINC instructors’ feedback for implementing blended learning (BL) in CLB 1-4 classes, to support the new instructors on handling trauma in the classrooms, and to give clear instructions to the new LINC instructors on online and BL teaching. For future research, it is suggested to conduct similar research on LINC learners and LINC support staff, which includes managers and administrators for their views on the working conditions and their experiences with LINC

A Manual for Project Governance and Asset Management

Students, practitioners, and businesses will all benefit from this free eBook, which focuses on project governance and asset management. Documenting best practices from design to implementation, including a review of existing frameworks, this eBook provides direction in the field of governance and asset management. Here, the ideas of assets and governance are brought together, and an agile governance framework is introduced. We hope to examine how these ideas may be used in project management in order to discover beneficial methodologies and approaches. If you’re looking to build trust and transparency in decision-making processes, this eBook is a must-read. It is intended for individuals who wish to create an atmosphere that accelerates strategy execution and the attainment of organisational objectives while offering good advice. Everyone in the organisation, including project managers and stakeholders from outside the company, can have an influence on the governance framework of projects and the management of the business’s assets to capture value and strengthen the strategic direction. By providing the necessary leadership, direction, and protocols, an organisation’s asset management and project governance frameworks may assist to guarantee that its strategy and execution are in sync

The shape of things to come: creating a planning culture in TAFE

This action learning action research project was undertaken as a Ph.D by Project. It focuses on two TAFE institutes in South Australia that were brought together to form an Alliance in 1999 during a time of turbulent change. At this time the TAFE sector in Australia was responding to and continues to respond to external and internal influences. The task was to initiate and implement a planning and performance framework, using quality assurance continuous improvement and change management principles, embracing organisational learning and development processes and practices, across the two institutes that comprised the Alliance. The action learning action research methodology used a project management approach as its change management strategy. The project entailed an ongoing process of reflection, planning, reviewing and improvement as the researcher and the institution worked to improve workplace practices at the macro level as well as within a subset of the organisation. This research explored the interface between practitioner, researcher and planner working in an organisation. The project’s cycles of activity undertaken with reference to the literature provided a rich resource to bring together the elements of research and practice. The connectivity of these experiences and the new knowledge and understanding gained, highlight the importance of the emergent planning, implementation and sustainable principles and practices identified as a result of this project. The project was an intervention in an organisation’s development at a point in time. It has highlighted strategies needed to be flexible to accommodate emerging divergent external influences with staff commitment and participation essential at all stages of change management practices. It highlights the importance of strong leadership in such a process