General Systems Thinking (ACCT 580)

The goal of this course is to equip future accountants, controllers, and business managers with with a palette of essential tools to formulate and solve decision making problems for situations characterized by a high degree of complexity, with special emphasis on accounting and finance applications. The term general in the title of the course implies that the approaches taught are applicable to a large class of problems characterized by complexity. The term system implies that the problems under study typically have multiple components that interact with each other over time in complex ways. The term thinking reminds us that, as with most modeling techniques, the key benefit of the approach lies in helping decision makers anticipate the implications of choosing one policy versus another and to visualize solutions that might not otherwise have been considered.

The course is delivered by means of lectures, case discussions and hands-on modeling in the computer lab. There is extensive use of software platforms such as Excel, Visual Basic for Applications and Vensim. Decision making approaches include Linear Programming, the Monte Carlo Method and System Dynamics. During the term students work on a variety of problems of practical relevance such as project selection under budgetary constraints, corporate valuation, market value at risk, and portfolio optimization.

Although no prior knowledge of simulation or computer programming is required, some familiarity with Excel is assumed. ACCT 580 will appeal more to those who enjoy working with computers and simulation languages, than to those who prefer less quantitative or analytical endeavors.