You are the management team in a business which makes self-assembly kitchen units and sells them to large do-it-yourself stores. One person should take on the role of the financial controller but the rest of the team may take any managerial roles they choose. Each manager will have responsibility for a cost centre. The group should decide, at the outset, on the name and purpose of each cost centre. 

In stage 1 of the team exercise, each manager should write down the name of the cost centre and a list of the costs for which the manager expects to have responsibility. A copy of the cost centre name and the list of costs should be supplied to each member of the team. 

In stage 2, each manager should separately write down his or her requirements from a company-wide cost coding system, yet to be designed, which has been  specified in outline as having six alphanumeric characters. Each manager should also make a note of any costs which are shared with another manager or managers.

While the managers are carrying out the second stage, the financial controller should prepare a cost coding system which would meet the needs as specified on the lists of costs provided by each manager from stage 1.

In stage 3, the group should come together for a management meeting at which the financial controller will provide his or her cost coding system and each manager will respond with his or her ideas. If possible, a mutually agreed solution should be found but, at the very least, the group should identify the areas where further negotiation will be required. Finally, the group should make a five-minute presentation to the class describing the negotiations on the coding system and commenting on the practical problems of such negotiation.