The Controlling Concept (eBook)

Cover 1
Zum Inhalt/Zu den Autoren 2
Titel 3
Impressum 4
Preface 5
Objectives and structure of the book 6
Contents 8
Controlling as the Foundation of Performance Management 12
Introductory Remarks 12
Further reading 15
1. Nature and Structure of Controlling 16
1.1 Chapter objectives 16
1.2 Introduction 17
1.3 Tasks of Controlling 17
1.4 Role and job description of the controller 19
1.5 The “House of Controlling” – Building blocks of an effective controlling system 21
1.6 The “House of Controlling” and its context factors 25
1.7 What comes next 29
1.8 Design checklist for managers and controllers 29
Further reading 30
2. Management Accounting 31
2.1 Chapter objectives 31
2.2 Introduction 32
2.3 The design for effective Management Accounting 33
2.3.1 Cost and profit accounting 33
2.3.1.1 Full costing systems 36
2.3.1.2 Direct costing systems 45
2.3.1.3 Activity-based costing 50
2.3.1.4 Income statement 59
2.3.1.5 Target costing 62
2.3.2 Investment appraisal 64
2.3.3 Investment appraisal methods 65
2.3.4 Investment appraisal system 70
2.4 The configuration of effective financial accounting 74
2.5 Practical example 77
2.5.1 The Fischer corporate group 77
2.5.2 Project: Reconfiguring cost and profit accounting and financial reporting 79
2.5.3 Lessons learned 82
2.6 Configurations checklist for managers and controllers 83
Further reading 84
3. Strategic Planning 85
3.1 Chapter objectives 85
3.2 Introduction 85
3.3 Creating an effective strategic plan 86
3.3.1 Strategy process 89
3.3.2 Selected strategic analysis instruments 91
3.3.3 Selected strategy development instruments 94
3.3.4 Strategy evaluation/selection with the instruments of value-based management 96
3.3.4.1 Discounted cash flow method (DCF) 99
3.3.4.2 Economic Value Added method (EVA®) 101
3.3.5 Strategy description and communication with strategy maps and the Balanced Scorecard 103
3.3.6 Strategy anchoring and strategy controlling 108
3.4 Practical example 112
3.4.1 Prints GmbH 112
3.4.2 Project: Development of a Balanced Scorecard 112
3.4.3 Lessons learned 117
3.5 Organisational checklist for managers and controllers 118
Further reading 118
4. Operative Planning, Budgeting and Forecasting 119
4.1 Chapter objectives 119
4.2 Introduction 119
4.3 Designing effective operative planning 120
4.4 Designing an effective budget 122
4.4.1 Budget system 122
4.4.2 Budgeting process 133
4.4.3 Budgeting bodies 139
4.5 Designing an effective forecast 139
4.5.1 Traditional forecast 139
4.5.2 Rolling forecast 140
4.6 Practical example 144
4.6.1 Safety Ltd 144
4.6.2 Project: Developing a new forecasting process 144
4.6.3 Lessons learned 149
4.7 Organisational checklist for managers and controllers 149
Further reading 150
5. Financial Management and Financial Controlling 151
5.1 Chapter objectives 151
5.2 Introduction 151
5.3 Designing effective Financial Management and Financial Controlling 152
5.3.1 Financial Management 153
5.3.2 Financial Controlling 156
5.3.2.1 Tasks of Financial Controlling 156
5.3.2.2 Financial Controlling tools 157
5.4 Practical example 162
5.4.1 Media AG 162
5.4.2 Project: Optimising liquidity planning 163
5.4.3 Lessons learned 166
5.5 Design checklist for managers and controllers 167
Further reading 167
6. Management Reporting 168
6.1 Chapter objectives 168
6.2 Introduction 168
6.3 Setting up effective management reporting 169
6.3.1 Basis: Effective analysis of need for information 170
6.3.2 Defining effective key figures 171
6.3.2.1 Function and categories of key figures 171
6.3.2.2 Key figures systems 176
6.3.2.3 The measurement parameter system of a Balanced Scorecard 177
6.3.3 Designing effective reporting 181
6.3.4 Current trends in management reporting 185
6.4 Practical example 187
6.4.1 Handels GmbH 187
6.4.2 Project: Development of a key figures system with standardised reports 187
6.4.3 Lessons learned 189
6.5 Design checklist for managers and controllers 190
Further reading 190
7. IT System 192
7.1 Chapter objectives 192
7.2 Introduction 192
7.2.1 Using IT in operations 193
7.2.2 Standard software selection process 195
7.3 Designing effective IT support for Controlling 197
7.3.1 Principles of IT Support 197
7.3.2 IT Support for Planning, Control and Data Analysis 199
7.3.3 Automation of Controlling Processes 202
7.4 Practical example 203
7.4.1 Industrielle Dienstleistungen GmbH and Anlagenbau AG 203
7.4.2 Project: Linking the Chart of Accounts and Cost Centre Plan 203
7.4.3 Lessons learned 207
7.5 Design checklist for managers and controllers 208
Further reading 209
8. Controlling Organisation 210
8.1 Chapter objectives 210
8.2 Introduction 210
8.3 Design of an effective Controlling organisation 212
8.3.1 Factors influencing the Controlling organisation 212
8.3.2 Embedding Controlling into the company 213
8.3.3 Controlling’s tasks 216
8.3.3.1 Process-orientated Controlling organisation 217
8.3.3.2 Controlling Shared Service Centre 221
8.3.3.3 Specialist Controlling tasks 224
8.3.4 Structure of the Controlling division 229
8.3.5 Controlling resources 231
8.4 Practical example 234
8.4.1 Travel SE 234
8.4.2 Project: Development of a CFO organisation across different locations 234
8.4.3 Lessons learned 238
8.5 Organisational checklist for managers and controllers 238
Further reading 239
9. Governance 240
9.1 Chapter objectives 240
9.2 Introduction 240
9.3 Designing an effective monitoring system 243
9.3.1 Internal control system 243
9.3.1.1 Internal control system function 243
9.3.1.2 The COSO concept 244
9.3.2 Internal audit 245
9.3.2.1 Internal audit function 245
9.3.2.2 Internal audit method 246
9.3.3 Risk management 249
9.3.3.1 Role of risk management 249
9.3.3.2 Risk analysis 250
9.3.3.3 Risk planning and control 252
9.3.3.4 Risk monitoring and documentation 253
9.4 Practical example 254
9.4.1 Medizintechnik AG 254
9.4.2 Project: Setting up systematic risk management 254
9.4.3 Lessons learned 258
9.5 Organisational checklist for managers and controllers 258
Further reading 259
10. Trends 260
List of authors 263
List of abbreviations 264
Bibliography 267
Index 271