The Controlling Concept
Cornerstone of Performance Management
Zusammenfassung
The Controlling Concept:
A guide to controlling, and how to adopt controlling effectively in business practice. This book describes, by means of the “House of Controlling”, how you can effectively implement controlling in your business practice. For instance, it clarifies the following questions:
What is the heart of the controlling concept?
Which subject areas are covered by an effective controlling system?
What does state-of-the-art controlling look like?
By what measures can the success of controlling be determined?
How can the effectiveness and efficiency of controlling be improved?
How is controlling continuing to develop?
Chapters are supplemented by organisational checklists and business practice examples, drawn from Horváth & Partners’ many years of experience developing and implementing controlling concepts at home and abroad.
Horváth & Partners is one of Germany’s foremost international consulting firms with core competencies in business management and performance optimisation, and for years has held the top spot in all rankings for Controlling and Finance.
Abstract
The Controlling Concept:
A guide to controlling, and how to adopt controlling effectively in business practice. This book describes, by means of the “House of Controlling”, how you can effectively implement controlling in your business practice. For instance, it clarifies the following questions:
What is the heart of the controlling concept?
Which subject areas are covered by an effective controlling system?
What does state-of-the-art controlling look like?
By what measures can the success of controlling be determined?
How can the effectiveness and efficiency of controlling be improved?
How is controlling continuing to develop?
Chapters are supplemented by organisational checklists and business practice examples, drawn from Horváth & Partners’ many years of experience developing and implementing controlling concepts at home and abroad.
Horváth & Partners is one of Germany’s foremost international consulting firms with core competencies in business management and performance optimisation, and for years has held the top spot in all rankings for Controlling and Finance.
- I–XII Titelei/Inhaltsverzeichnis I–XII
- 1–4 Controlling as the Foundation of Performance Management 1–4
- Introductory Remarks
- Further reading
- 5–19 1. Nature and Structure of Controlling 5–19
- 1.1 Chapter objectives
- 1.2 Introduction
- 1.3 Tasks of Controlling
- 1.4 Role and job description of the controller
- 1.5 The “House of Controlling” – Building blocks of an effective controlling system
- 1.6 The “House of Controlling” and its context factors
- 1.7 What comes next
- 1.8 Design checklist for managers and controllers
- Further reading
- 21–74 2. Management Accounting 21–74
- 2.1 Chapter objectives
- 2.2 Introduction
- 2.3 The design for effective Management Accounting
- 2.3.1 Cost and profit accounting
- 2.3.1.1 Full costing systems
- 2.3.1.2 Direct costing systems
- 2.3.1.3 Activity-based costing
- 2.3.1.4 Income statement
- 2.3.1.5 Target costing
- 2.3.2 Investment appraisal
- 2.3.3 Investment appraisal methods
- 2.3.4 Investment appraisal system
- 2.4 The configuration of effective financial accounting
- 2.5 Practical example
- 2.5.1 The Fischer corporate group
- 2.5.2 Project: Reconfiguring cost and profit accounting and financial reporting
- 2.5.3 Lessons learned
- 2.6 Configurations checklist for managers and controllers
- Further reading
- 75–108 3. Strategic Planning 75–108
- 3.1 Chapter objectives
- 3.2 Introduction
- 3.3 Creating an effective strategic plan
- 3.3.1 Strategy process
- 3.3.2 Selected strategic analysis instruments
- 3.3.3 Selected strategy development instruments
- 3.3.4 Strategy evaluation/selection with the instruments of value-based management
- 3.3.4.1 Discounted cash flow method (DCF)
- 3.3.4.2 Economic Value Added method (EVA®)
- 3.3.5 Strategy description and communication with strategy maps and the Balanced Scorecard
- 3.3.6 Strategy anchoring and strategy controlling
- 3.4 Practical example
- 3.4.1 Prints GmbH
- 3.4.2 Project: Development of a Balanced Scorecard
- 3.4.3 Lessons learned
- 3.5 Organisational checklist for managers and controllers
- Further reading
- 109–140 4. Operative Planning, Budgeting and Forecasting 109–140
- 4.1 Chapter objectives
- 4.2 Introduction
- 4.3 Designing effective operative planning
- 4.4 Designing an effective budget
- 4.4.1 Budget system
- 4.4.2 Budgeting process
- 4.4.3 Budgeting bodies
- 4.5 Designing an effective forecast
- 4.5.1 Traditional forecast
- 4.5.2 Rolling forecast
- 4.6 Practical example
- 4.6.1 Safety Ltd
- 4.6.2 Project: Developing a new forecasting process
- 4.6.3 Lessons learned
- 4.7 Organisational checklist for managers and controllers
- Further reading
- 141–157 5. Financial Management and Financial Controlling 141–157
- 5.1 Chapter objectives
- 5.2 Introduction
- 5.3 Designing effective Financial Management and Financial Controlling
- 5.3.1 Financial Management
- 5.3.2 Financial Controlling
- 5.3.2.1 Tasks of Financial Controlling
- 5.3.2.2 Financial Controlling tools
- 5.4 Practical example
- 5.4.1 Media AG
- 5.4.2 Project: Optimising liquidity planning
- 5.4.3 Lessons learned
- 5.5 Design checklist for managers and controllers
- Further reading
- 159–182 6. Management Reporting 159–182
- 6.1 Chapter objectives
- 6.2 Introduction
- 6.3 Setting up effective management reporting
- 6.3.1 Basis: Effective analysis of need for information
- 6.3.2 Defining effective key figures
- 6.3.2.1 Function and categories of key figures
- 6.3.2.2 Key figures systems
- 6.3.2.3 The measurement parameter system of a Balanced Scorecard
- 6.3.3 Designing effective reporting
- 6.3.4 Current trends in management reporting
- 6.4 Practical example
- 6.4.1 Handels GmbH
- 6.4.2 Project: Development of a key figures system with standardised reports
- 6.4.3 Lessons learned
- 6.5 Design checklist for managers and controllers
- Further reading
- 183–200 7. IT System 183–200
- 7.1 Chapter objectives
- 7.2 Introduction
- 7.2.1 Using IT in operations
- 7.2.2 Standard software selection process
- 7.3 Designing effective IT support for Controlling
- 7.3.1 Principles of IT Support
- 7.3.2 IT Support for Planning, Control and Data Analysis
- 7.3.3 Automation of Controlling Processes
- 7.4 Practical example
- 7.4.1 Industrielle Dienstleistungen GmbH and Anlagenbau AG
- 7.4.2 Project: Linking the Chart of Accounts and Cost Centre Plan
- 7.4.3 Lessons learned
- 7.5 Design checklist for managers and controllers
- Further reading
- 201–230 8. Controlling Organisation 201–230
- 8.1 Chapter objectives
- 8.2 Introduction
- 8.3 Design of an effective Controlling organisation
- 8.3.1 Factors influencing the Controlling organisation
- 8.3.2 Embedding Controlling into the company
- 8.3.3 Controlling’s tasks
- 8.3.3.1 Process-orientated Controlling organisation
- 8.3.3.2 Controlling Shared Service Centre
- 8.3.3.3 Specialist Controlling tasks
- 8.3.4 Structure of the Controlling division
- 8.3.5 Controlling resources
- 8.4 Practical example
- 8.4.1 Travel SE
- 8.4.2 Project: Development of a CFO organisation across different locations
- 8.4.3 Lessons learned
- 8.5 Organisational checklist for managers and controllers
- Further reading
- 231–250 9. Governance 231–250
- 9.1 Chapter objectives
- 9.2 Introduction
- 9.3 Designing an effective monitoring system
- 9.3.1 Internal control system
- 9.3.1.1 Internal control system function
- 9.3.1.2 The COSO concept
- 9.3.2 Internal audit
- 9.3.2.1 Internal audit function
- 9.3.2.2 Internal audit method
- 9.3.3 Risk management
- 9.3.3.1 Role of risk management
- 9.3.3.2 Risk analysis
- 9.3.3.3 Risk planning and control
- 9.3.3.4 Risk monitoring and documentation
- 9.4 Practical example
- 9.4.1 Medizintechnik AG
- 9.4.2 Project: Setting up systematic risk management
- 9.4.3 Lessons learned
- 9.5 Organisational checklist for managers and controllers
- Further reading
- 251–264 10. Trends 251–264
- List of authors
- List of abbreviations
- Bibliography
- Index
