Controlling: An Effective Managerial Tool PDF

06.12.24 CONTROLLING As an effective tool for managerial work in the company by maría duque and jorge carro  1. INTRODUCTION 2. CORE CONCEPTS OF CONTROLLING Presentation 3. ECONOMIC ANALYSIS IN CONTROLLING INDEX 4. MONITORI...

06.12.24 CONTROLLING As an effective tool for managerial work in the company by maría duque and jorge carro  1. INTRODUCTION 2. CORE CONCEPTS OF CONTROLLING Presentation 3. ECONOMIC ANALYSIS IN CONTROLLING INDEX 4. MONITORING AND EVALUATION OF ECONOMIC RESULTS 5. CASE STUDIES AND PRACTICAL EXAMPLES 6. CONCLUSION  INTRODUCTION Controlling is a fundamental managerial function that involves monitoring, evaluating, and ensuring that an organization’s activities align with its set goals and plans. It acts as a guide, helping managers maintain focus and consistency in achieving objectives.  CORE CONCEPTS AND CONTROLLING Controlling in Management Controlling plays a crucial role in decision-making processes within organizations. It ensures that activities align with planned objectives, helps assess performance, and provides the necessary data for informed decisions 1. Monitoring 2. Providing Feedback Progress 3. Resource Allocation 4. Agility in Decision Making CORE CONCEPTS AND CONTROLLING Integration with Managerial Work Aligning Controlling with Enhancing Operational and Organizational Goals Strategic Management 1. Operational Management: 1. Translating Goals into Measurable Efficiency Targets Resource Utilization 2. Continuous Monitoring and Feedback Performance Evaluation 3. Accountability and Transparency 2. Strategic Management: Data-Driven Decisions Long-Term Planning Risk Mitigation ECONOMIC ANALYSIS Indicators Economic indicators play a crucial role in integrating controlling into effective management and decision-making. These indicators allow managers to measure, analyse, and guide business performance, ensuring alignment with strategic goals. KEY PERFORMANCE FINANCIAL VS. NON- INDICATORS FINANCIAL INDICATORS  Key Performance Indicators (KPIs) KPIs are measurable values that demonstrate how effectively a company achieves its objectives Revenue Growth Net Profit Margin Customer Retention Rate Tracks sales performance Indicates overall profitability Measures the loyalty and over time. satisfaction of clients. Importance: Provides measurable benchmarks for success. Highlights areas needing improvement or optimization. Guides resource allocation and operational strategies.  Financial vs Non - Financial Indicators FINANCIAL NON-FINANCIAL Customer Satisfaction Scores: Gross Profit Margin Market Share Return on Investment (ROI) Employee Engagement Cash Flow ESSENTIAL FOR ASSESSING SHORT-TERM HIGHLIGHTS INTERNAL AND EXTERNAL DRIVERS PERFORMANCE AND LONG-TERM OF BUSINESS SUCCESS, FOSTERING A HOLISTIC SUSTAINABILITY. UNDERSTANDING OF PERFORMANCE.  MONITORING AND EVALUATION of economic results For evaluate and monitor the economic results of a company several types and techniques of controlling can be used. FEEDBACK CONCURRENT YES/NO techniques of TRADITIONAL MODERN CONTROLLING 1. PERSONAL OBSERVATION 1. MANAGEMENT AUDIT 2. RESPONSIBILITY 2. BUDGETING ACCOUNTING Techniques of control are being used by managers since long and there are two 3. FINANCIAL categories of controlling namely the STATEMENTS 3. RATIO ANALYSIS traditional techniques and the modern techniques.  Amazon CASE STUDY Amazon has successfully implemented controlling as a tool for management through various innovative practices, combining data analytics, Lean Six Sigma, and a customer- focused approach to enhance operational efficiency, service quality, and cost-effectiveness.  DATA-DRIVEN 1. DECISION MAKING 2. LEAN SIX SIGMA 3. SUPPLY CHAIN AND INVENTORY MANAGEMENT These initiatives illustrate how Amazon uses controlling mechanisms to not only 4. EMPOWERMENT THROUGH monitor and improve day-to-day operations but also to ensure continuous ANDON CORD growth, customer satisfaction, and market dominance.  final CONCLUSION Controlling is a key factor in improving management effectiveness by ensuring that all activities are aligned with the organization's goals. It provides managers with important data and feedback that allow them to track progress, manage resources efficiently, and make better decisions. By identifying problems early, controlling helps to reduce waste and keep everything running smoothly. It connects both day-to-day tasks and long-term strategies, breaking down big goals into measurable targets. References https://www.geeksforgeeks.org/controlling-nature-importance-and-limitations/ https://www.sfmagazine.com/articles/2023/june/traditional-vs-contemporary-management- accounting-practices https://www.orgvue.com/resources/articles/organizational-strategy-aligning-with-business- objectives/ https://www.taxmann.com/post/blog/controlling-a-function-of-management#6666 https://www.investopedia.com/terms/k/kpi.asp https://sustainability.aboutamazon.com/governance https://www.leadingsapiens.com/amazon-management-and-decision-making-system/ THANK YOU very much !!