The multifaceted leadership of R. J. Chambers: a personal reflection

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1 University of Wollongong Research Online Faculty of Commerce - Papers (Archive) Faculty of Business 2010 The multifaceted leadership of R. J. Chambers: a personal reflection Michael J. Gaffikin University of Wollongong, gaffikin@uow.edu.au Publication Details Gaffikin, M. J. (2010). The multifaceted leadership of R. J. Chambers: a personal reflection. World Accounting Frontiers Series 2nd Conference (pp ). Sydney: University of Western Sydney. Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: research-pubs@uow.edu.au

2 The multifaceted leadership of R. J. Chambers: a personal reflection Abstract I was working in a fairly insignificant accounting department of a (then) small university when I was charged with the responsibility of accompanying Ray Chambers and his wife Margaret to dinner. He had accepted an invitation to the University from its Accounting Student Society and for us it was an important occasion to have such a distinguished visitor. During our conversation that evening Ray suggested I come to Sydney University as he thought I would find it (intellectually) stimulating. I took upu his suggestion and did not live to regret it. Working with Chambers was indeed an intellectually stimulating expewrience and I learned a lot from him most especially the need to aspire to intellectual rigour in my work. In this, Chambers certainly led by example and while many people did not accept the conclusions in the theory he developed, I believe it is generally agreed by all that he demponstrated the highest standards of scholarship in developing and promoting his ideas. Yet, to me, this was only one aspect - albeit a very important one - of the leadership skills he possessed and practised. Keywords multifaceted, leadership, Chambers, personal, reflection Disciplines Business Social and Behavioral Sciences Publication Details Gaffikin, M. J. (2010). The multifaceted leadership of R. J. Chambers: a personal reflection. World Accounting Frontiers Series 2nd Conference (pp ). Sydney: University of Western Sydney. This conference paper is available at Research Online:

3 TheMultifacetedLeadershipofRJChambersaPersonalReflection MichaelGaffikin TheUniversityofWollongong Iwasworkinginafairlyinsignificantaccountingdepartmentofa(then)smalluniversitywhenIwascharged withtheresponsibilityofaccompanyingraychambersandhiswifemargarettodinner.hehadaccepted aninvitationtotheuniversityfromitsaccountingstudentsocietyandforusitwasanimportantoccasion tohavesuchadistinguishedvisitor.duringourconversationthateveningraysuggestedicometosydney UniversityashethoughtIwouldfindit(intellectually)stimulating.Itookuphissuggestionanddidnotlive toregretit.workingwithchamberswasindeedanintellectuallystimulatingexperienceandilearnedalot fromhimmostespeciallytheneedtoaspiretointellectualrigourinmywork.inthis,chamberscertainly ledbyexampleandwhilemanypeopledidnotaccepttheconclusionsinthetheoryhedeveloped,ibelieve itisgenerallyagreedbyallthathedemonstratedthehigheststandardsofscholarshipindevelopingand promotinghisideas.yet,tome,thiswasonlyoneaspectalbeitaveryimportantoneoftheleadership skillshepossessedandpractised. AssuchaneminentscholartherehasmuchwrittenaboutChambersandhehimselfhasgivenseveral accountsofwhathewastryingtoachieveinhiswork.afestschriftissueofabacuspublishedin2000(v36, no3)ayearafterhisdeathisagoodexampleitcontainspapersbythosewhohadbeenassociatedwith himandcovereddifferentaspectsofhisachievementsaswellaspreviouslyunpublishedpapersby Chamberswhichappeartobedraftsofwhathemighthaveintendedtohavebeenpartofan autobiography.inaddition,veryrecently,aspartofthecelebrationofthe50thanniversaryofwhatwas originallythedepartmentofaccountingattheuniversityofsydneyamonographpreparedbysomeofhis disciples(clarke,dean&wells,2010)providesanaccountofhisachievements.theseauthorshavehad accesstochambers'sprivateandprofessionalpapersmostofwhichsurviveddestructionafterhisdeath duetotheeffortsandforesightofhisonetimeresearchassistantgraemedean.thebulkofthesearenow housedandaccessibleattheuniversityofsydneyinanarchivecalledtherjchamberscollection(see Clarke,DeanandWolnizer,2006). Thispaperthen,asitstitlesuggests,isapersonalreflectionthroughtheeyesofsomeonewhoworked closelywithhimoveraperiodoftenyearsduringalatterpartofhiscareerandcompletedadoctoralthesis withchambersasitssubject.

4 BriefBackgroundSketch RaymondChamberswasborninNewcastle,Australiawhereheundertookhisearlyeducationunderwhat wewouldnowconsider"difficultcircumstances"(seechambers,2000a).tohiseducatorsheshowed promiseandenthusiasmandwasencouragedtofurtherhisstudies.heearnedauniversityplacethat enabledhimtoundertakeauniversityeducationattheuniversityofsydneywherehestudiedforan economicsdegree.asmallbusinessman,hisfather'sbusiness,likesomanyothersduringthedepression ofthe1903s,hadsufferedbadly(chambers,2000b,p321).thus,foreconomicreasonschamberswas unabletoattenduniversityfulltimeandhadtostudyparttime(economicsandaccountingratherthanhis possiblypreferredengineering,architectureormedicine)eveningclasseswiththedaytimebeingspent firstemployedintheaccountingofficeofthedepartmentoftheattorneygeneralandofjustice,partof thenswpublicservice.hethenmovedtoemploymentinthepetroleumindustrywhereheworkedasan inventorycontrolofficerandthentoasimilarpositionintheelectricitymeterandalliedindustries.from 1943to1945hewasengagedasaninvestigationofficerwiththeAustralianPricesCommission.Inthislast positionhefelthebecamemoreactivelyengagedwithaccountingandhewasamazedatthediverse mannerinwhichorganisationsdeterminedpricesandcalculatedprofits.withoutsubscribingtosimple causeandeffectclaimsitseemsthattheobservationshemadewiththepricescommissiontogetherwith hisexperienceswithhisfather'sbusiness"accounting"greatlyinfluencedhislaterwork.hefeltthat throughthesehewasmadeawareoftheadhocandconfusingwayinwhichaccountingrulesandpractices weredevelopeddogmaratherthanrigorousanalysisandthought(cfchambers,2000a). In1945hewasappointedtohisfirstacademicpositionlecturerintheDepartmentofIndustrial ManagementintheSydneyTechnicalCollege.Hisresponsibilitieswerenotinaccountingaswenowknow itbutfor"costingandcostcontrol"whichwerepartoftherequirementsforamoregeneralmanagement "education".however,chambersfelttherewasanurgentneedforeducationinthefinancialdimensions ofmanagement.consequently,hedevelopedsubject(s)inwhathetermedfinancialmanagementandthat wasthetitleofhisfirstbookproducedin1947andwhichwentthroughseveralrewritings(ratherthan mererevisions)andwashailedasaseminalworkandwhichplacedaccountingwithintheframeworkof financialmanagement.onfirstseeingthisbookiwasintriguedbyaquotationinthefrontispiece(ofthe secondedition),viz "Badproductionmanagementandbadsalesmanagementhaveslaintheirthousands,but badfaultyfinancehasslainitstensofthousands"(colinbrooks) Duringthisperiodhealsopublishedresearchpapersandpresentedresearchlectures. In1953Chamberswasappointedtothefirstfulltimeacademicpositionseniorlecturerinaccountingat theuniversityofsydney.twoyearslaterhewaspromotedtoassociateprofessorandafterfiveyearsto thefoundationchairinaccountingatthatuniversity,apositionhehelduntilhisretirementin1982at 42

5 whichtimehewasmadeanemeritusprofessor.withhisappointmentin1953sydneyuniversity introducedanaccountingmajorinitsbachelorofeconomicprogramandonhisappointmenttoprofessor in1960theuniversityestablishedthedepartmentofaccounting.theuniversityhadtaughtindividual accountingsubjectssince1907. DuringhislifeChambersreceivedverymanyawardsandhonoursconferreduponhim.Forexample,in 1976hewaselectedbytheAmericanAccountingAssociationasitsinauguralDistinguishedInternational Lecturerandlater,in1991wasawardeditsOutstandingAccountingEducatorAward.Inthesameyearhe waselectedtotheaccountinghalloffameintheohiostateuniversityandthisyear,2010,hewaselected tothenewlycreatedaustralianaccountinghalloffameattheuniversityofmelbourne.earlier,hehad receivedthegoldmedaloftheaicpaforhisbookaccounting,evaluation,andeconomicbehavior publishedin1966.thesearebutafewinstancesofhisrecognitionasatrulydistinguishedandhighly respectedinternationalaccountingscholar. ALeaderinIdeas OnenteringanacademiccareerChamberssaid(2000b,p321)onthebasisofhisexperienceshehad learnedtwothings Accountinguniversallyclaimedtoberelatedtothegrowthofbusinessandfinance. Itsrulesandproductswerenottheoutcomeofdisciplinedreasoningasinmathsand physicalandbiologicalsciencesbutoftraditionalrulesofthumbandthedogmaofitselders initialcost. Asstatedabove,withoutsubscribingtosimplisticcauseandeffectexplanations,itseemsthatChambers's ideasweregreatlyinfluencedbyhisexperiences(andobservations).histimeatthepricescommissionhad ledhimtothesecondoftheconclusionsabovethehaphazardwayinwhichaccountingproceeded.he heldthat Accountingisaboutfinancialaffairs,aboutthefinancialconsequencesofengagementsand transactionsofoneperson,businessfirmorotherorganization,withallothersuchparties(ina nutshell,withtherestoftheworld).(2000a,p314) Financialaffairsreferstotheeverydayactivitiesinwhichweallengagethathavetodowithmoney, money'sworthandclaimstomoney.accountingthenis"inprinciple,asystematicprocessofrecording successively,andsummarizingoccasionally,theeffectsofeventsandexchangesonthepropertyholdings andwealthofanidentifiedparty"(p314).thesummarisedrecordbecomesthebasisonwhichdecisions couldbemade.thisformsthe"core"ideaofthetheoryhedevelopedforresolvingtheproblemswith 43

6 whichaccountingwassospectacularlygrapplingthefailureofextantaccountingtoprovide"useful"(inhis terms"truthful")informationtousersoffinancialstatementsintimesofvariablepricelevels. ToChamberstherewereuniversalaccountingtruthsthatshouldbeestablished.Thatis,hebelieved accountingshouldhaveprinciplesthatexistedatalllevels,fromhouseholdstolargecorporations.the differencelayintheincreasedcomplexityofcorporatefinancialaffairsbut,likeindividuals,managers neededtoknowwhatresourceswereattheircommandtomakeeffectivedecisionsaboutfuturecourses ofaction. Theconductofhouseholdandbusinessaffairsalikeproceedsbytherecurrentinflowand outflowofidentifiedquantitiesofgoodsandservicesandmoney,andtheholding,between times,ofidentifiablestocksofgoodsandmoney.(2000a,p313) Thecapacitytoengageinactionswoulddependonthestock(quantity)ofgoodsandmoneyataparticular pointintime.thedifferencebetweentherecordofthisstockfromonetimetoanotherwouldrepresent income(orprofit). Thesummarisedrecorduptoagivendatewould"providereliablegrounds"fordecisionmaking.However, discrepanciesbetweentherecordandtheobservedquantityofgoodsandmoneywouldbetheresultof deliberatedeceit,inadvertentgainsorlossesorerrorsinrecording.intherecordingofthestocksofgoods andresourcesthecommondenominatorismoney.thatis,underlyingthisinformationwerethemeasures ofmoney(ormoneyequivalents).thisinturnledtoanemphasisontheprinciplesandtheoriesof measurement. IndevelopinghisideasChambersclearlythought"outsidethebox".Helookedbeyondtheconventional technicalconventions.indevelopinghiscoursesinfinancialmanagementatthetechnicalcollegehehad concludedthataccountingwasinextricablyboundupwithfinancialmanagement(hencethefirstofhis conclusionsalludedtoabove).thus,unliketheconventionalapproaches,tohimaccountingwasnota technicalexerciseinitsownrightbutwastoservetheneedsofthosemanagingtheirfinancialaffairsfor individualsorlargeorganisations.inallcasesmoneywasasensiblecommonandwidelyunderstood(and necessary)element.hence,histheoryofcontinuouslycontemporaryaccounting(cocoa)wasbasedon currentcashequivalentsuptodate(currentandnotpast)measuresofmoney. ALeaderinEducation Chambers'sfirsttaskattheTechnicalCollegewastodevelopcoursesincostingandcostcontrols.Hefound mosttextbookstreatedthesesubjectsasstandalonespecialismswithits"ownmoreorlessisolated, rationale",andatfirsthefollowedthisapproach.however,hesoonconcludedhowwrongthiswas. 44

7 VeryearlyinhisacademiccareerChambersdistinguishedaccountingtrainingfromaccountingeducation. Inanearlyarticleonthesubject,hestatedthat Educationmaybeconsideredasaprocessbywhichtheinnatequalitiesofthestudentare drawnoutanddeveloped,andbywhichthestudent'smindisenrichedbothbecauseofthe experiencesufferedandbecauseoftheknowledgegained.teachingtobereallyeducational should,therefore,aimtoprovidesuchstimuliforthestudentthathe(sic)goesforward seekinganunderstandingoftheprinciplesofhissubjectratherthansittingbacksmuginthe knowledgethathe'swatted'thecorrectmaterialforhisexamination.("thetrainingof Accountants",1948,p.322,quotedinWolnizer&Dean,2000,p248) Thesenotionscontinuedtoguidehisactionsthroughouthisacademiccareer.AttheUniversityofSydney accountingeducation"wastohavefirmer,morerigorousintellectualunderpinningsthantheconventional kind"wolnizer&dean,2000,p250).and,aschambershimselfwastosay Wedevelopedtheteachingprogramfrombeingahandmedownbunchofroterecipestoa courseofstudyworthytobeincludedwithothercoursesleadingtomastersandphddegrees. (2000bp322) ThereislittledoubtthattheeducationalprogrammesChambersdevelopedatSydneywereuniqueand revolutionaryintheirapproach(cfchambers,1991).maintainingtheintellectualrigourheinsistedonwas difficultforhiscolleaguesbutitisinterestingtonotethatalmostallrosetoandwillinglyacceptedthe challenge.asoneofthesecolleaguesiconcurredwithhisdemandsfordevelopingcoursesthatwere directedtoeducationandnottraining;toencouragestudentstothinkforthemselvesandnotsimply regurgitatepastpractices.itwascertainlyafarcryfrommanyprogrammestodaywherelecturersadopta textbooksolongasthepublishersincludeallthe"extras"thathelpthemavoidhavingtothink.for example,wecouldneversimplytakeexamquestionsfromsomepast(orevencurrent)textbuthadto tailorquestionsthatattemptedtoreallydeterminehowmuchthestudentshadlearned.teachinglarge numbersoffirstyearstudentswithoutaregulartextbookplaceddemandsonourresourcefulness. However,asstatedatthestartofthispaper,complyingwithsuchrigourhaditslongtermrewards. AnAcademicLeader FromhisdateofappointmentasanacademicChambersledbyexamplehedemonstratedtheskillsofan academicexemplar.whenhearrivedhefoundadisciplinewithlittlerespectforcerebralendeavour, contenttocontinuetobeatthebeckandcallofstrongbusinessinterestsratherthandevelopa"real" academicdisciplineworthyofaplaceinauniversity.hefoundthechallenge"exhilarating"andhasreferred toitas"livingonthefringe".such"livingonthefringeisalwaysdemanding,sometimesexhilarating, alwaysadventurous...somegettheirkicksoutofdoingwhat'snotbeendonebefore,somefrom 45

8 outdoingrivals,somefrompublicapplausesomefromsimplypursuinggoalsoftheirchoicewhichothers haveheldtobeunattainable"(2000b,p322). Hesufferedthefatethatmanyolderaccountingacademicssufferedondisclosingtheirdisciplinethe constantchallengeofwhat'sbookkeepingdoinginauniversity?withtherecordatthattimeoftheso calledprofessionitwasachargethatoftenlentonetocringecorporatecollapses,financialscandals, economicdisasters.sowhat'snew?thesedaysiguess,othershavegotusedtohavingusaroundand besideswebringinalotoffundstoourinstitutions.however,tochambersitwasachallengetomake accountingworthyofitsuniversityplace.onarrivingatsydneyiwaspleasantlysurprisedtofind acceptanceofmybeinganacademicaccountingandisoonrealisedthatthiswaslargelyduetotherespect Chambershadearnedthroughhisintellectualapproachtothesubject. Therespecthadbeenearnedfromthenatureofhispublicationsandtherigouroftheacademic programmes.however,chambersalsosoughttoestablishanacademicaccountingresearchjournal.for himthiswasajourneyfraughtbyconstantfrustration,disappointmentandsometimesbetrayal.yethe doggedlypersistedandabacuswassuccessfullylaunched(seewells,2000) Chamberswasuniversallyrecognisedasanacademicleaderandwasconstantlyinvitedtopresentlectures atuniversitiesaroundtheworld.forexample,tenofthemostprestigiousuniversitiesintheusin1966; fifteenuniversitiesinnorthamerica(mexicotocanada)in1970;thefourmostimportantuniversitiesin Japanin1971;elevenuniversitiesintheUSAandfourintheUKin1976(andofcourseNewZealand). InAustraliahehadbeenoneoftheinstigatorsoftheAssociationofUniversityTeachersofAccountingin Australiaandservedasitchairman.ThisbodywasthentobecameAAANZandlaterAAFAANZ. AnUnacknowledgedLeaderofProfessionalPractice EarlyinhiscareerChambershadpublishedlearnedpapersintheprofessionalbodyjournalswhenthey publishedsuchthingsastherewerenoacademicresearchjournals.hewasinvitedtopresentresearch lecturesmanytimesatsuchoccasionsastheirannualcongresses.heservedasexaminerformanysubjects forbothprofessionalbodies.and,despitehishavinga"nomeanresearchrecord"hewasneveraskedto serveontheaustralianresearchfoundation(arf)onitsestablishmentin1965.hewasurgedtoseek nominationtocouncilofthe(then)australiansocietyofaccountantsbutfailedtowinelectioneachtime. However,hewaslateraskedtofillacasualvacancyandlaterendedupbeingtheNationalPresidentofthe Society. 46

9 HeworkedextremelyhardfortheSocietyasaCouncillorthenitsPresidentyethisideaswerecontinually ignoredorsummarilydismissed(seechambers,2000b).hemadecountlesssubmissionstothearfand otherregulatorybodiesinaustraliaaswellastheus,theukandcanadayettheytoowereignored.some ofthepoliticalmachinations(bypractitionerandacademics!)thatwereengagedintopreventchambers havinginputintoanyaccountingregulationshavetobereadtobebelieved. Henotesthat AninternationalprofessionalconferenceinSydneyin1972sawspeakerafterspeaker denounceconventionalaccountingthedogswerebarkingit:thedaysofcostbasedvaluations inbalancesheetswereover!butnosoonerhadtheyallgonehomethanthestandards committeesbroughtforthstandardsforthevaluationofcommodities,inventoriesespecially, onthebasisofhistoricalcosts!(2000b,p324) Surprisingly,Chambersdidnotresorttocynicismanddespair.Heretainedabeliefthatonetestwouldsee thesurvivalofhisideasandworkhistory. AnIntellectualLegacy Chambers'sintellectualcontributiontoaccountingwastremendous.Unfortunately,giventheway accounting(andprobablymanydisciplines)operatesthiscontributionhasalltoooftenbeenoverlooked.in 1955hechallengedthecomplacencyoftheestablishedthinkinginaccountingwithacallforincreased rigourandtheuseofascientificapproachtodevelopinganaccountingtheory.theideasinthispaperalso laiddownthefoundationsofhisownapproachtodevelopingaccountingtheory;manyotherpapers followedeachbuildingonthosethathadprecededthem.heremainedconsistentwiththeunderstanding oftheoryconstructionwhichhehaddevelopedfromhiswidereadingandtheexperiencesand observationsdescribedabove.hewasalwaysloathetopointtoanydirectindividualsourcesforhisideas ashisreadinghadbeentheworksinmanydisciplinesphilosophyofscience,economics,science, psychology,history,engineering,lawandothers.nevertheless,hismethodofapproachwasmodernistbut, atthetime,itwasaveryradicaldevelopmentinaccounting.hisearlypapersusheredinaperiodof extensivemethodologicaldebateinaccounting(seegaffikin,2008,chapter3).however,itshouldbe pointedoutthatdespitehisconsiderabletheoreticalprowessandinterestchamberswasvitallyconcerned withtheadvancementofthepracticaleverydayaffairsofaccounting.tohim,itisimperativethatany theoryhavethepotentialforadvancingpractice. Mymajorinteresthasbeenintellectualhistorythedevelopmentofideas.Chambersrecognisedthisand thisformedthebasisofthemanylong,stimulatingandenjoyablediscussionsheandihadandforwhichi was,amandwillbeevergrateful:iconsiderhimmymentor.thus,aquestionthathasremainedinmy 47

10 mindishowsomeoneobviouslycapableofmakingatremendousintellectualcontributiontothe developmentofaccountingknowledgecouldbesodismissedintheeverydayworldofpracticalaccounting andoverlookedbysomanyacademicaccountants.however,therearesomediscipleswhoprostrate themselvesbeforehisimageandcontinuallymumblethemantra."chambersisgreat"presumingthat someoftheprophet'sgreatnessrubsoffonthembymereassociation.iconsideritmoreappropriateto salutehisgreatnessandpracticewhathetaughtme.asindicatedabove,theessentialtenetofhisideasof educationwastoinculcatetheabilitytothinkcriticallyandindependentlyratherthanlearn(and regurgitate)"roterecipes".iinterpretthisastakingonboardwhathetaughtandextendingitthrough rigorousthoughtandresearchsituationsandcircumstanceschangeovertime.ienjoythemusicof SchubertbutthatdoesnotmeanIshouldnotlistenandenjoythemusicofBartok,Stravinsky,SteveReich orjohncage.notonlydohisdisciplesrepeathisconclusionstheyrepeathisoutmodedmodernist methodologicalapproach. IthasbeenclaimedbythoseintheselfpromotingsocalledSydneyschoolofaccountingthatChambersis the"fatheroffairvalueaccounting"(egclarke,dean&wells,2010,p11).whilethereislittledoubtthat exitpricesformedakeytohistheoryofaccountingibelieverecoursetohistorywouldmakethisa contestableclaim.while,ibelieveheproducedaconvincingargumentfortheuseofexitpricesasthe basisofaccountingmeasuresithinkhiscontributionsgoeswellbeyondthat.forexample,considerhis massiveaccountingthesaurus(1995). Therehavebeenseveralpeopleatthefrontiersofaccountingofaccountingknowledge.TomeChambersis ashiningbeaconintheseseveralanddeservesfullacknowledgmentofthisasthisverybriefcontribution clearlyindicates. REFERENCES Chambers,RJ(1953)Financialmanagementastudyofthebasesoffinancialdecisionsinbusiness,(second edition)sydney:thelawbookcoofaustraliaptyltd. Chambers,RJ(1955),"Blueprintforatheoryofaccounting",AccountingResearch,v6,pp1725. Chambers,RJ(1991),Foundationsofaccounting,Geelong:DeakinUniversityPress. Chambers,RJ(1995),Anaccountingthesaurus500yearsofaccounting,Oxford:ElsevierScience. Chambers,RJ(2000a),"Earlybeginnings",Abacus,v36,pp Chambers,RJ(2000b),"Lifeonthefringeanaccountingodyssey",Abacus,v36,pp Chambers,RJ&GWDean(2000),"Aidememoire",Abacus,v36,no3,pp Clarke,Frank,GraemeDean&MurrayWells,(2010),TheSydneySchoolofAccountingTheChambers Years,Sydney:TheUniversityofSydney. 48

11 Dean,GW,FLClarke&PWWolnizer(2006),"TheRJChamberscollection:anarchivist'srevelationsof 20thcenturyaccounting,.thoughandpractice".TheAccountingHistoriansJournal,v33,pp Gaffikin,MJR(1988),AccountingmethodologyandtheworkofRJChambers,NewWork:Garland PublishingInc. Gaffikin,MJR(2008),Accountingtheory:research,regulationandaccountingpractice,Sydney:Pearson Publishing. Gaffikin,M.J.(2010),"Beingcriticalinaccounting",InternationalReviewofBusinessResearchPapers,6(5), 3345 Wells,Murray(2000),"FoundingAbacus:frustrationtofulfilment",Abacus,v.36,no.3,pp Wolnizer,PWandGWDean(2000),"Chambersaseducatorandmentor",Abacus,v36,no3,pp

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