Course HM 004 06.11.2014, WS 2014 / 2015 Andreas Klingen

Content for Today Administrative Matters Key Points Session 23.10.2014 Finalising Session 23.10. - Strategy Controlling – Organisational Issues The BSC

Administrative Matters Alignment with home university is still pending Adjustment to course outline - BSC - Value based management - Motivational KPIs

Key Points 23.10 Controlling as a process The role of the controller Strategy development

Controlling as Staff unit MD /Board Procurement Production Sales …. Controlling + -

Controlling “integrated” MD /Board Sales – Production – Controlling - HR + -

Controlling as Line unit MD /Board Procurement Production Sales …. Controlling + -

Controling in a matrixorganisation …. Controlling Controling in a matrixorganisation HR Treasury C1 C2 C3 C4 C5

Centralisation vs. Decentralisation Information vs Influence Timing vs Depth Details vs Distance „Management“ vs „Control“

Balanced Scorecard – the classic

Balanced Scorecard – the classic Robert Kaplan & David Norton, The BSC: Translating Strategy into Action R. Kaplan: Conceptual Foundations of the Balanced Scorecard Countless variants, extremely popular, often abused and unclear ..but one basic pattern

BSC - metrix Financial: to succeed financially, how should we appear to our stakeholders? In the public sector, the financial perspective tends to emphasise cost efficiency? Customer: to achieve our vision, how should we appear to the customers / external clients / departments that we work with? Internal business processes: to satisfy our stakeholders and customers / external clients /departments which internal processes must we excel at? Learning and growth: to achieve our vision, how will we sustain our ability to change and improve?

Metrics in BSC Examples Metrics Objective Type Measures Targets   Objective Type Measures Targets Supporting Initiatives Result Analysis Examples

BSC – Strategy Map Financial: Maximise Shareholder Value Customer: Exceed Expectation Create Loyalty Internal processes: Enhance Communication Optimize the Organisation Produce Quality Products Learning and growth: Train Workforce Hire Quality Staff

BSC – Strategy Map A look at the reality