Internationaler Controller Verein ev. How controllers can achieve to be a partner of managers

Transcription

1 Internationaler Controller Verein ev How controllers can achieve to be a partner of managers

2 How controllers can achieve to be a partner of managers Agenda 1. Controllers task 2. Five levels to become a partner a) Construction of database b) Implementation of planning and analyzing system c) Combination of strategic and operational issues d) Realization of sustainable business by steering circle e) Make controlling as a Service Business for change management 3. Conclusion Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 3

3 Controllers task IGC International Group of Controlling Controllers Mission Statement, Vienna, 01/26 /2013 As partners of management controllers make a significant contribution to the sustainable success of the organization. We support managers with information and we challenge their objectives, plans and outcomes at an eye-to-eye level. We support managers comprehensively. We are neither number-crunchers, nor yea-sayers. Rather, we are sparring partners and take our share of responsibility for the company's success. Controlling is not only relevant for profit-oriented companies but also for NPOs. The aim of controlling is to increase the company's value in the long-term rather than to maximize profits in the short run. Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 4 4

4 Controllers have to answer three main questions 2. What is the economic relevant quality to get the necessary in-payment? 1. What is the minimum profit we need to cover the I. Investors and public demands II. Future risks III.Shareholders engagement? and how we can keep all cost on an allowed level? 3. How we can balance income-based motivation of all our relevant stakeholders with the company s strategic goals? Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 5

5 Controlling is leading by goals - not by figures! Planning Plans are realizing structures for goals. o How do we organize Goal detection space for innovations? o How do we fulfil what we promise to the customers? o How do we manage reliable processes for internal and DIN SPEC 1086, Quality Standards of Controlling, Sense for others external cooperation? Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 6 Valuable Vision keep & change goals measurability coherent figures understandable manageable meaningful Controlling It is the management process of economic goal-detection, planning and management control focused on securing sustainable profitability. Sense for us Budgeting and management control Budgets translate plans into households of cost centers. o How do we name the responsibility for leadership? o How do we manage the connection between performance and cost?

6 How controllers can achieve to be a partner of managers Agenda 1. Controllers task 2. Five levels to become a partner a) Construction of database b) Implementation of planning and analyzing system c) Combination of strategic and operational issues d) Realization of sustainable business by steering circle e) Make controlling as a Service Business for change management 3. Conclusion Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 7

7 The best way to predict the future is to create it (Abraham Lincoln according Perikles) There are 5 levels of controllers responsibility to answer the three question level 5: Controlling as a Service Business for change management level 4: Realization of sustainable business by steering circle level 3: Combination of strategic and operational issues level 2: Implementation of a planning and analyzing system level 1: Building and preserving a consistent structure of controlling data Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 8

8 The best way to predict the future is to create it (Abraham Lincoln according Perikles) To act in this manner controllers are the economic conscience and thus committed to the good of an organization as a whole. IGC International Group of Controlling Controllers Mission Statement, Vienna, 01/26 /2013 This also includes controllers ethical behaviour as well as their loyalty to the company. We act as guardian of company interests when supporting an individual manager. This means to act as a critical counterpart and prevent managers from making decisions which are based on short-term, divisional or personal interest, rather than in the best interest of the organization. Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 9

9 The best way to predict the future is to create it (Abraham Lincoln according Perikles) To act in this manner a controller prepares and uses instruments, methods and key figures in a manner that allows managers to recognize their own responsibility for the sustainable economic success and to agree to being measured by their contribution to the company s success. DIN SPEC 1086, Quality Standards of Controlling, Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 10

10 5 levels of controllers responsibility level 5: Controlling as a Service Business for change management level 4: Realization of sustainable business by steering circle level 3: Combination of strategic and operational issues level 2: Implementation of a planning and analyzing system Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 11

11 Level 1: Building and preserving a consistent structure of controlling data Responsibility for the data quality Basics master data transfer prices active accounts access permissions Structures of bookkeeping product cost structural costs types of profit use Financial language definitions (order, sales, deposits etc.) calculation guidelines methods of presentation Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 12

12 Level 1: Building and preserving a consistent structure of controlling data A controller must be able to book And he must master the integration of the internal structures of booking Cash Flow Statement Source: Eberenz, Presentation at 10. Controlling Innovation Berlin Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 13

13 5 levels of controllers responsibility level 5: Controlling as a Service Business for change management level 4: Realization of sustainable business by steering circle level 3: Combination of strategic and operational issues level 1: Building and preserving a consistent structure of controlling data Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 14

14 Level 2: Implementation of a planning and analyzing system Ensure the compatibility of analysis, accounting and the planning system. What kind of questions we want to answer? Margin contribution Cost of capital Systematical work with goals Target costing Project control Translation into a budget / / /2013 Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 15

15 5 levels of controllers responsibility level 5: Controlling as a Service Business for change management level 4: Realization of sustainable business by steering circle level 2: Implementation of a planning and analyzing system level 1: Building and preserving a consistent structure of controlling data Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 16

16 Level 3: Combination of strategic and operational issues Establish the connection between the purpose of the enterprise, its business model, its goals concerning growth, development and profitability as well as the concrete measures for the implementation of strategic and operational goals overarching all hierarchic levels. DIN SPEC 1086, Quality Standards of Controlling, Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 17

17 Excursus: What is strategic, what is operational? long-term? to do nothing? strategic develop potentials Marketing Develop capacities Quality potential HR competences Investor Relations Partnership Expenditures Potentials Possibilities + competencies to do? short-term? operational exploit potentials Orders / Sales Use capacities Quality assurance Employee engagement Safeguarding liquidity Partner engagement Growth of potentials Growth of money Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 18

18 5 levels of controllers responsibility level 5: Controlling as a Service Business for change management level 3: Combination of strategic and operational issues level 2: Implementation of a planning and analyzing system level 1: Building and preserving a consistent structure of controlling data Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 19

19 Level 4: Realization of sustainable business by steering circle Ensure a sustainable balance between Growth, Development and Profit. Continuous improvement Key performance indicators (KPI) as answers to key performance questions (KPQ) based on technological processes Integration of customer relationship management (CRM), supply chain management (SCM) and corporate social responsibility (CSR) into the business model Analyze and evaluate Define goals D G P Deploy Learn and define new goals Approach and plan Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 20

20 Reduce complexity the (most) innovative challenge for the controller service Manage volatility by bandwidths and scenario planning Big Data Management [Kaplan / Norton] for each: less than seven (specific) goals / indicators TOP-Management Business Intelligence Focus on a handful of goals Region / Department Management A Region / Department Management B Region / Department Management Strategy Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 21

21 5 levels of controllers responsibility level 4: Realization of sustainable business by steering circle level 3: Combination of strategic and operational issues level 2: Implementation of a planning and analyzing system level 1: Building and preserving a consistent structure of controlling data Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 22

22 Level 5: Do controlling as a Service Business for change management Controllers are value creating and enabling partners of managers. Controllers work with service level agreements Controllers improve the efficiency of their own business as well as that of other businesses in the company Controllers know what their (internal) costumer need to be successful Controllers have their own business model to contribute to their costumers success and implement it with a suitable strategy IFAC definition The Domain of PAIBs (Professional Accountant in Business) Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 23

23 Level 5: Do controlling as a Service Business for change management Meet the demands of a smarter Management: Serve me, don t sell me Listen to me Empower me Speed me Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 24

24 How controllers can achieve to be a partner of managers Agenda 1. Controllers task 2. Five levels to become a partner a) Construction of database b) Implementation of planning and analyzing system c) Combination of strategic and operational issues d) Realization of sustainable business by steering circle e) Make controlling as a Service Business for change management 3. Conclusion Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 25

25 Conclusion To become a business-partner is a hard and long way. The end result is an image of the controller as a comprehensive companion for managers. The essence of Controlling The perspective of ICV and IGC Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 26

26 That s all folks! Hvala puno Internationaler Controller Verein ev Dr. Walter Schmidt 2013 Zagreb Seite 27