Are traditional management accounting systems holding back customer focus in the financial sector? This article explores barriers to implementing customer-oriented management accounting in retail financial services, which often do not allow the identification of profitable customer relationships. It examines how financial institutions integrate management accounting systems with customer-related activities, enabling customer profitability analyses. Drawing on a stage model and data from Danish financial service companies, the study identifies barriers related to organization structure, resources, and attitudes. It documents how financial institutions are increasingly integrating management accounting systems with customer-related activities thus enabling customer profitability analyses. New accounting systems may be less important to customer orientation than empowerment and goal-oriented participation of the frontline employees. Empowering frontline employees and fostering participation may be more crucial for customer orientation than simply implementing new accounting systems. Data gathered at the branch level strongly indicate problems of ownership and project sponsoring.
Published in the International Journal of Service Industry Management, this article addresses a critical area of service industry efficiency and customer focus. Although specific journal categories are absent, the study of accounting systems in relation to customer activities directly aligns with the journal's focus on improving service quality and management practices.