Controlling

1. Strategic controlling . Tracks changes that occur both in the organization itself and in its environment. Moreover, the nature of the changes plays an important role. This type of controlling is focused on maintaining and building the potential for success, conducting an anti-crisis policy in all its areas. It solves the following tasks : monitoring the reality of qualitative and quantitative development parameters, setting goals, defining principles of crisis management in specific conditions; distribution in form and measure of responsibility for the implementation of certain tasks of the strategic program; analysis and research of alternative strategies; identification of critical factors for the implementation of the strategic program - both external and internal; definition of milestones in the implementation of the strategic program, requiring enhanced control , the use of special methods of assessment, detection, etc. the establishment of a relationship of indicators for the purpose of crisis management , their validity and reliability, sufficient composition and calculation methods; the formation of the criterial basis of estimates, deviations, standard values. ^[one]
2. Tactical controlling . It characterizes the current activities for the implementation of a systematic control of the organization and solves the following tasks : establishing the necessary frequency of control, allowing timely detection of deviations, dangerous phenomena and weaknesses; definition and implementation of the scope of control (there is total, selective, local and general control); ensuring the depth of control, reflecting the ability to capture weak signals, detect those processes that can only become more noticeable in the near future; regulation of the complexity of control, which largely depends on its organization and methodology , the use of modern technical means of processing information , the extent and depth of control, the qualifications of the personnel exercising control; motivation and provision of control conditions, reflecting the fact that control always involves human participation; determination of critical points of a controlled process. The links between strategic and tactical controlling are manifested in the methodology and organization of control activities. The controlling methodology is characterized by its goals, principles , approaches, tools and methods. ^{[2] [3]}

In different countries, controlling managers (controllers) may have a different bias. For example, in the United States there is a strong financial bias (budgeting, insurance management, tax administration, etc.), while in Germany, cost management and planning are more developed.

Controlling practice was borrowed from England as part of generally accepted business practice in accordance with the requirements of Company Acts rules dating back to the 1700s. The term "controlling" itself originated in the USA, in the 1970s the concept of "controlling" migrated to Western Europe, and then in the early 1990s it spread throughout the world.

Controlling is considered, on the one hand, as a philosophy, a way of thinking of managers focused on the efficient use of resources and development of an enterprise (organization) in the long term and as a goal-oriented integrated system of informational, analytical and methodological support for leaders in the planning, control, analysis and making managerial decisions in all functional areas of the enterprise.

When constructing controlling systems, it is always necessary to compare the effect of it (both in the short and long term) with the complexity of the enterprise management system (increasing the complexity of the processes).

The following aspects are included in the controlling system:

• determination of the goals of the activity;
• reflection of these goals in the system of effective and balanced indicators ( KPI );
• regular monitoring (measurement) of the actual values ​​of indicators;
• analysis and identification of the reasons for deviations of the actual values ​​of indicators from planned;
• adoption on this basis of management decisions to minimize deviations.

The controlling goal is to build an effective system for the adoption, implementation, control and analysis of management decisions at the enterprise.

The main tasks to be solved:

• Optimization of organizational structure management.
• Organization of an effective system for recording operations and results.
• Implementation of planning, control and analysis systems.
• Providing staff motivation to increase the efficiency of the company.
• Automation of accounting systems and company management.

Consider the example of a very small organization, where a manager (manager), being both the owner or fully responsible to the entire environment of the organization, works at the same time and in the same place with his workers. He himself can determine the quality of future products or services. It determines the quality of the interconnected speed of work. It determines fair remuneration for workers. He decides what to do with industrial waste. It purchases the tool and material (by definition). It calculates financial equilibrium (income and expenses). He himself plans future development and works on implementation, etc., etc.

Often, in order to increase profits (the required volume of work, profitability, stability, etc.), the manager (manager) expands the number of employees to 3 or 7 (the number depending on the field of activity). The volume of his dispositive work is increasing, correlating with the growing volume of object-oriented work of his employees. The result of this decision is the inability at the same time and in the same place to be with your workers and to control labor productivity, the quality of work of workers, handling of tools, "garbage", etc., etc. The consequences arising from this, in the presence of interference in the process of work (and life often consists of interference - systemic and random), there may be the following: poor-quality products or services with a possible loss of the customer, unprofitable production with subsequent bankruptcy , unfair bonus payments to workers followed by demotivation, etc., etc.

The next stage in the increase in the number of employees in an organization involves the transfer of many dispositive functions from a manager (manager) to an average level of management, since it is no longer possible for a manager to perform this volume of dispositive functions. Our manager is simply not able to procure tools and materials, manage production, protect property, keep financial records, etc., etc. But the transfer of dispositive functions leads to more and more risks and, consequently, increasing consequences for completely responsible. Examples: long-term planning of activities, budgeting, carrying out expensive research, legally controversial advertising campaign, etc. After all, the responsibility remains with our manager.

Trying to answer the question of how to make it possible for the organization to work with lower risks and with better characteristics, entire management systems are being developed that are often combined under the concept of controlling. The essence of these systems can often be described as a set of intellectual (systematized) mechanisms for the controlled direction of actions of employees in the absence of a responsible manager in place, which lead to an effective, desired result for the organization.

The recognition by managers of the impossibility of controlling their subordinates in their absence, especially in large enterprises, led to the idea of ​​control through information about the actions and facts that the subordinate comes into contact with, often collected with the help of the subordinate. This is a transition to control with the help of numbers and facts, which is even more effective than a large number of intermediate managers. The very first and oldest system of financial (numerical) control is accounting. Unfortunately, he is not able to fully comply with most of the above listed needs of managers even in relation to primary information, therefore management accounting was developed and implemented. Management accounting, including its specialized implementations such as production accounting , warehouse accounting , accounting in QMS, accounting in marketing , etc., together with accounting, make up the information base of controlling.

In any controlling system, there are the following mandatory factors associated with information and information flows:

1. Information Support
   • correctness in fact (the message corresponds to the requested)
   • correctness in form (the message corresponds to a predefined message form)
   • reliability (the reported corresponds to the fact)
   • accuracy (the error in the message is known)
   • timeliness (on time)
2. Transmission and / or transformation of information
   • authenticity of the fact (fact not changed)
   • source authenticity (source not changed)
   • the correctness of information transformations (the report is correct in a hierarchical transfer)
   • archival preservation of originals (analysis of work and failures)
   • access rights management (content of documents)
   • registration of changes (manipulations)

At this stage, specially developed complex software packages and managers may not even be able to cope completely; they are forced to insert additional indirect mechanisms. Often, a poorly configured production program causes unwanted distortion of information.

“Horizontally” can describe any controlling work as part of the dispositive work with the following structure:

1. Planning
2. Implementation and control
3. Analysis and Processing
4. Self improvement

At the same time, there is an understanding of self-learning organizations where the above items are in a constant cycle. The names of the stages differ from author to author.

Specific mechanisms are created depending on the sphere of influence of the controlling system. Controlling R&D is different from controlling logistics, production. Financial controlling of the whole organization differs from marketing controlling, a quality management system or from a risk management system, etc. You can list some common areas of controllers' actions:

• budgeting
• operational planning
• strategic planning,
• management accounting and cost analysis,
• tax planning
• investment and financing planning,
• insurance activity
• Information Support,
• coordination activities
• department control
• production program control,
• interaction with tax authorities.

Critics call the actions of controllers often too "technogenic." Therefore, a deeper accounting of knowledge from the sphere of personnel management , especially the operational and long-range plan, becomes an integral part of the development of controlling systems.

The complexity of quality controlling systems is often a barrier to the successful implementation of these methods.

• Horvath P. Controlling, Vahlen. München, 2006.
• Controlling: a textbook / A. M. Karminsky, S. G. Falko, A. A. Zhevaga, N. Yu. Ivanova; under the editorship of A.M. Karminsky, S.G. Falko. M.: Finance and Statistics, 2006. ISBN 5-279-03048-1.