The Controlling Concept

Cornerstone of Performance Management
1. Auflage 2019
ISBN: 978-3-8006-5381-2
Verlag: Franz Vahlen
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 264 Seiten

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.


What distinguishes the book 'The Controlling Concept'

• It provides crucial elements for successful business management
• It is practice-based
• The 'House of Controlling', which covers all branches of controlling and positions controlling as a whole within the Company
• Compact format
• Specific organisational recommendations
• Numerous practical examples from companies
• Organisational checklists for managers and controllers at the end of every chapter
• All of the contents are based on many years of practical experience of organising and developing effective controlling systems in companies

Inhaltsverzeichnis

1;Cover;1
2;Zum Inhalt/Zu den Autoren;2
3;Titel;3
4;Impressum;4
5;Preface;5
6;Objectives and structure of the book;6
7;Contents;8
8;Controlling as the Foundation of Performance Management;12
8.1;Introductory Remarks;12
8.2;Further reading;15
9;1. Nature and Structure of Controlling;16
9.1;1.1 Chapter objectives;16
9.2;1.2 Introduction;17
9.3;1.3 Tasks of Controlling;17
9.4;1.4 Role and job description of the controller;19
9.5;1.5 The “House of Controlling” – Building blocks of an effective controlling system;21
9.6;1.6 The “House of Controlling” and its context factors;25
9.7;1.7 What comes next;29
9.8;1.8 Design checklist for managers and controllers;29
9.8.1;Further reading;30
10;2. Management Accounting;31
10.1;2.1 Chapter objectives;31
10.2;2.2 Introduction;32
10.3;2.3 The design for effective Management Accounting;33
10.3.1;2.3.1 Cost and profit accounting;33
10.3.1.1;2.3.1.1 Full costing systems;36
10.3.1.2;2.3.1.2 Direct costing systems;45
10.3.1.3;2.3.1.3 Activity-based costing;50
10.3.1.4;2.3.1.4 Income statement;59
10.3.1.5;2.3.1.5 Target costing;62
10.3.2;2.3.2 Investment appraisal;64
10.3.3;2.3.3 Investment appraisal methods;65
10.3.4;2.3.4 Investment appraisal system;70
10.4;2.4 The configuration of effective financial accounting;74
10.5;2.5 Practical example;77
10.5.1;2.5.1 The Fischer corporate group;77
10.5.2;2.5.2 Project: Reconfiguring cost and profit accounting and financial reporting;79
10.5.3;2.5.3 Lessons learned;82
10.6;2.6 Configurations checklist for managers and controllers;83
10.6.1;Further reading;84
11;3. Strategic Planning;85
11.1;3.1 Chapter objectives;85
11.2;3.2 Introduction;85
11.3;3.3 Creating an effective strategic plan;86
11.3.1;3.3.1 Strategy process;89
11.3.2;3.3.2 Selected strategic analysis instruments;91
11.3.3;3.3.3 Selected strategy development instruments;94
11.3.4;3.3.4 Strategy evaluation/selection with the instruments of value-based management;96
11.3.4.1;3.3.4.1 Discounted cash flow method (DCF);99
11.3.4.2;3.3.4.2 Economic Value Added method (EVA®);101
11.3.5;3.3.5 Strategy description and communication with strategy maps and the Balanced Scorecard;103
11.3.6;3.3.6 Strategy anchoring and strategy controlling;108
11.4;3.4 Practical example;112
11.4.1;3.4.1 Prints GmbH;112
11.4.2;3.4.2 Project: Development of a Balanced Scorecard;112
11.4.3;3.4.3 Lessons learned;117
11.5;3.5 Organisational checklist for managers and controllers;118
11.5.1;Further reading;118
12;4. Operative Planning, Budgeting and Forecasting;119
12.1;4.1 Chapter objectives;119
12.2;4.2 Introduction;119
12.3;4.3 Designing effective operative planning;120
12.4;4.4 Designing an effective budget;122
12.4.1;4.4.1 Budget system;122
12.4.2;4.4.2 Budgeting process;133
12.4.3;4.4.3 Budgeting bodies;139
12.5;4.5 Designing an effective forecast;139
12.5.1;4.5.1 Traditional forecast;139
12.5.2;4.5.2 Rolling forecast;140
12.6;4.6 Practical example;144
12.6.1;4.6.1 Safety Ltd;144
12.6.2;4.6.2 Project: Developing a new forecasting process;144
12.6.3;4.6.3 Lessons learned;149
12.7;4.7 Organisational checklist for managers and controllers;149
12.7.1;Further reading;150
13;5. Financial Management and Financial Controlling;151
13.1;5.1 Chapter objectives;151
13.2;5.2 Introduction;151
13.3;5.3 Designing effective Financial Management and Financial Controlling;152
13.3.1;5.3.1 Financial Management;153
13.3.2;5.3.2 Financial Controlling;156
13.3.2.1;5.3.2.1 Tasks of Financial Controlling;156
13.3.2.2;5.3.2.2 Financial Controlling tools;157
13.4;5.4 Practical example;162
13.4.1;5.4.1 Media AG;162
13.4.2;5.4.2 Project: Optimising liquidity planning;163
13.4.3;5.4.3 Lessons learned;166
13.5;5.5 Design checklist for managers and controllers;167
13.5.1;Further reading;167
14;6. Management Reporting;168
14.1;6.1 Chapter objectives;168
14.2;6.2 Introduction;168
14.3;6.3 Setting up effective management reporting;169
14.3.1;6.3.1 Basis: Effective analysis of need for information;170
14.3.2;6.3.2 Defining effective key figures;171
14.3.2.1;6.3.2.1 Function and categories of key figures;171
14.3.2.2;6.3.2.2 Key figures systems;176
14.3.2.3;6.3.2.3 The measurement parameter system of a Balanced Scorecard;177
14.3.3;6.3.3 Designing effective reporting;181
14.3.4;6.3.4 Current trends in management reporting;185
14.4;6.4 Practical example;187
14.4.1;6.4.1 Handels GmbH;187
14.4.2;6.4.2 Project: Development of a key figures system with standardised reports;187
14.4.3;6.4.3 Lessons learned;189
14.5;6.5 Design checklist for managers and controllers;190
14.5.1;Further reading;190
15;7. IT System;192
15.1;7.1 Chapter objectives;192
15.2;7.2 Introduction;192
15.2.1;7.2.1 Using IT in operations;193
15.2.2;7.2.2 Standard software selection process;195
15.3;7.3 Designing effective IT support for Controlling;197
15.3.1;7.3.1 Principles of IT Support;197
15.3.2;7.3.2 IT Support for Planning, Control and Data Analysis;199
15.3.3;7.3.3 Automation of Controlling Processes;202
15.4;7.4 Practical example;203
15.4.1;7.4.1 Industrielle Dienstleistungen GmbH and Anlagenbau AG;203
15.4.2;7.4.2 Project: Linking the Chart of Accounts and Cost Centre Plan;203
15.4.3;7.4.3 Lessons learned;207
15.5;7.5 Design checklist for managers and controllers;208
15.5.1;Further reading;209
16;8. Controlling Organisation;210
16.1;8.1 Chapter objectives;210
16.2;8.2 Introduction;210
16.3;8.3 Design of an effective Controlling organisation;212
16.3.1;8.3.1 Factors influencing the Controlling organisation;212
16.3.2;8.3.2 Embedding Controlling into the company;213
16.3.3;8.3.3 Controlling’s tasks;216
16.3.3.1;8.3.3.1 Process-orientated Controlling organisation;217
16.3.3.2;8.3.3.2 Controlling Shared Service Centre;221
16.3.3.3;8.3.3.3 Specialist Controlling tasks;224
16.3.4;8.3.4 Structure of the Controlling division;229
16.3.5;8.3.5 Controlling resources;231
16.4;8.4 Practical example;234
16.4.1;8.4.1 Travel SE;234
16.4.2;8.4.2 Project: Development of a CFO organisation across different locations;234
16.4.3;8.4.3 Lessons learned;238
16.5;8.5 Organisational checklist for managers and controllers;238
16.5.1;Further reading;239
17;9. Governance;240
17.1;9.1 Chapter objectives;240
17.2;9.2 Introduction;240
17.3;9.3 Designing an effective monitoring system;243
17.3.1;9.3.1 Internal control system;243
17.3.1.1;9.3.1.1 Internal control system function;243
17.3.1.2;9.3.1.2 The COSO concept;244
17.3.2;9.3.2 Internal audit;245
17.3.2.1;9.3.2.1 Internal audit function;245
17.3.2.2;9.3.2.2 Internal audit method;246
17.3.3;9.3.3 Risk management;249
17.3.3.1;9.3.3.1 Role of risk management;249
17.3.3.2;9.3.3.2 Risk analysis;250
17.3.3.3;9.3.3.3 Risk planning and control;252
17.3.3.4;9.3.3.4 Risk monitoring and documentation;253
17.4;9.4 Practical example;254
17.4.1;9.4.1 Medizintechnik AG;254
17.4.2;9.4.2 Project: Setting up systematic risk management;254
17.4.3;9.4.3 Lessons learned;258
17.5;9.5 Organisational checklist for managers and controllers;258
17.5.1;Further reading;259
18;10. Trends;260
18.1;List of authors;263
18.2;List of abbreviations;264
18.3;Bibliography;267
18.4;Index;271