Course HM 004 22.10.2014, WS 2014 / 2015 Andreas Klingen

Content for Today Administrative Matters Key Points Session 16.10.2014 Controlling and Strategy

Adminstrative Matters Content Synchronicity Moscow / Berlin Examination relevance - Next Steps Calendar of future sessions (changes)

Key Points Session 16/10/ 2014 A controller needs to ask the right questions before answering it A controller is surveyor and forecaster of an organisation (current and future) and its competitive environment No intelligent questions without a well defined strategy Hence, there is an inevitable link between planning and control and … indicators as such are useless

Some words on the home work Not only a warm up exercise Some of you did attend strategy course Apply the tools you learnt. Use “your” examples in todays session Comments or observations on your choices?

“Strategy” What is Strategy? What is its history? What is Vision? Basic Types of Strategy? What is Strategic Analysis?

Strategy – a few German words on its history The “German Angle” – the one classic in the field Carl von Clausewitz (1780–1831) - “Vom Kriege” Military theory and its link to politics

The generic process Planning of strategic goals Strategic Analysis and Prognosis Design, Evaluation and Strategic Choice Execution of the Strategy Strategic Control

Strategy (cont’d) - Examples One classic: Michael E. Porter Generic competitive strategies over all cost leadership differentiation focus

Strategy Analysis – one more classic

What is the role of the controller in that? Planning of strategic goals Strategic Analysis and Prognosis Design, Evaluation and Strategic Choice Execution of the Strategy Strategic Control

The generic strategy process An annual cycle Strictly formalised in many corporations Very often the controller is the guardian of that process

Strategy (cont’d) Strategy formation… … as a formal process (planning) … as an analytical process (positioning) … as a visionary process (entrepreneurial) … as a emergent process (learning) … as process of negotiation (power) … as a collective process (cultural) ... as a reactive process (environmental)

Three books on Strategy Overview: Mintzberg et al, Strategy Safari A classic: Porter, competitive strategy “Current”hype: Taleb, The black swan