Bratislava Veselin Perovic PhD1 FACULTY OF ECONOMIC INFORMATICS UNIVERSITY OF ECONOMIC IN BRATISLAVA 11 th International Scientific Conference AIESA – building of society based on knowledge Bratislava 17 th – 18 th may 2007 WHAT IS CONTROLLING ? Veselin Perovic, PhD, BSc. Economy Associate Professor Faculty of technical sciences Novi Sad

Bratislava Veselin Perovic PhD2 CONTROLLING

Bratislava Veselin Perovic PhD3 Defintion of term CONTROLLING To controll To controll - controll, managing, rules setting and directing... Controlling outlines bussiness policy of an enterprise It includes the tasks of management planning and business processes supervision and informations Controlling Planning ManagingSupervision Informations

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Bratislava Veselin Perovic PhD5 COOPERATION MANAGER - CONTROLLER A controller doesn't control. Who performs the controlling function ? Manager’s job is to do the controlling, controller has to ensure that the managers actually do carry out their controlling. Controller is an adviser, not an executive.

Bratislava Veselin Perovic PhD6 THE ROLE OF THE CONTROLLER The controller’s task is to create instruments (strategic and operative), and to show how. these tools are to be used. Preconditions Preconditions: Academic bacground – specialization in controlling, experience i finance, management controlling, experience i finance, management and knowledge of business operations. and knowledge of business operations.

Bratislava Veselin Perovic PhD7 A controlling proces

Bratislava Veselin Perovic PhD8 A controlling proces MANAGER CONTROLLER Manage business Responsible for result Responsible for reporting Resposinble for transparency

Bratislava Veselin Perovic PhD9 Current situation Current situation in our praxis is that in majority of finance departments exists a sector for planning and analysis. It should be said that analyses tasks are directed to the achieved things. The main task, is almost, to analyze things that where happened in the past. Organization of modern controlling would be directed to present and future, so a modern financial manager and other managers in an enterprise can bear in mind the goals of profit, realization, financial security and rational enterprise liquidity.

Bratislava Veselin Perovic PhD10 Connection controlling – planning Strategic planning the WAY to go Targets Measures How to attain all that? Operative planning W(Growth) A(Develop.)Y(Profit)

Bratislava Veselin Perovic PhD11 Controlling = WAY to a profit zone Which WAY does the company go? G = Growth (W) D = Development (A) P = Profit (Y)

Bratislava Veselin Perovic PhD12 BALANCED SCORECARD Performance measurement

Bratislava Veselin Perovic PhD13 Kaplan & Norton Tranlsating strategy into action

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Bratislava Veselin Perovic PhD15 Managenet by objectives Development Strategic themes TargetTarget ActionAction IndicatorIndicator

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