Do you know what Business Controllership is?

 

  


This post is a free and authomatic Google translation from Portuguese to English for this reason some poor translation can occur but hopefully w// important loss..

You comment will be wellcome.

                  

Firstly, it is important to clarify that Business Controllership does not compete with Financial Controllership. In reality, the two complement each other.

Most companies do not have a professional with specific expertise in Business Controllership, in this case it is important that the  Controller , Manager or Financial Director accumulate the two functions that must work in a harmonious way. It would be like having two hats , and when the executive is using one of the hats, it really should incorporate the figure of the  Controller  of Business or the  Controller  Financial.

While Financial Controllership is focused on meeting accounting, tax and financial needs, Business Controllership prioritizes the search for efficiency and effectiveness with value generation in the business areas for investors, managers, employees, partners and even for the community where the company is inserted.

A look at accurate and organized data from the past, associated with a clear vision of the various key performance indicators obtained through strategic planning (Long Term) and Tactical or Operational (Short and Medium Term), will assist in the execution of the present. For this, one must consider:

- Continuous Improvement Programs and Implementation of Best Practices, supported by historical data studies with root cause analysis on past executions;

- Focus on strategic elements of performance by business area such as: sales quality, margin optimization, cost reduction, expense control, optimized use of assets, minimizing  working capital , among others.

So that all this is really nothing more than a speech, as occurs in most companies where most of the time is directed to day to day, and sometimes to put out fires that will occur all the more the lower the quality of the processes performed, Business Controllership will use tools that together form a systemic and structured set that may include:

- ERP (integrated system with optimized use). 

-A well structured database with accessible information is a great advantage;

- Management of Costs, Expenses and Assets focused on continuous improvement, quality (form) and agility (time) of information;

- Scheduled and structured meetings with a systematic approach and evaluation of the various indicators obtained through the  Managerial Controlling Accounting Package  (Information Package for Control and Planning);

- Forecas t Rolling System  (Rotating Forecasts) with detailed projection and monthly replanning for a minimum period of 12 months (18 to 24 months - ideal);

- Simulation system for different scenarios. The   Business Controller when presenting projections must always have evaluated at least 3 scenarios. A realist, another pessimist and another optimist;

- Control and Project Management - Business Controllers are in charge of special studies, strategic projects and analyzes that are not part of the continuous information system. This includes studies that involve discontinuing a situation. Example: moving a factory, buying a company or brand, discontinuing a less profitable product line, etc.

While Financial Controllership focuses on the correct record, meeting the multitude of tax, accounting and operational requirements of TOP LINE - Revenue, Business Controllership focuses on the quality of sales that is reflected in the margins generated by customer, by product line, by region sales, by business segments and sometimes even in terms of customer satisfaction and level of service.

In other several components of the P&L (or DRE) and elements of the company's equity situation (balance sheet accounts) there are also marked differences between the performance of business controllership and financial controllership. This I usually address in Lectures, Courses and Seminars on the topic.

It is incredible that looking at the literature and even course menus at various levels including MBA's from renowned schools, I see a "chatter" that seems to me more like a "philosophy of controllership" than actually something that reflects the day to day and needs of the Controllership of Business from the best companies. ( This is based on Brazil )