Strategic and operational Controlling - Early Recognition of Crisis

Assistance in good and in bad times - someThe regular analysis of strengths andweaknesses of
enterprises are in acrisis without knowing it. Often itthe business belongs to the tasks of the strategic
is only noted that somethingmust happen, whenControlling, too.
customers move away, loans are cancelled,suppliersHowever, the operational Controlling concentrates on
threaten the business with stop of delivery andthe day-today business and on the most important
whenmore and more pressure is put on the business.information about thebusiness development. It has to
(You find adetailed article about signs of a crisis atbe paid attention to the fact,that only that much
It doesn't have to come that far. To recognize theinformation are collected and are evaluatedas really
development ofbusiness crises early, it requires anecessary to management a business. This is usually
suitable Controlling.aweak spot of controlling systems in small and
Controlling has to make business finances, processes,medium sizedbusinesses. Often too less or too many
costs anddependences clear and contributes therebydata are collected and areevaluated without paying
to a higher economicviability. A sensibly action, thatattention to the importance for thebusiness
smaller and medium sizedbusinesses rarely taken.management.
Result: They often react a lot too lateto marketIt is possible to manage a business on the basis of up
influences and crises.to 30ratio values, which are calculated weekly.
As a basis for the Controlling principally serves theContinuing analysescan be done when it is necessary.
accountingof a business. Nevertheless, this has to theThis saves a lot of time,especially in small and
result that themedium sized businesses in which rarely a
Controlling concentrates its work on data from theControlling department exists.
past. That'swhy it is necessary to extend theTo prepare strategic evaluations, needs no big effort
operational Controlling withstrategic analyses.orextensive methodical knowledge to reach high
However, also the operational Controlling is able toexpressiveness. Atregular intervals prepared strategic
use datafrom different areas of a company, whichanalyses give clues for thedevelopment of the
allow to recognize weakspots in businessenterprise and assists to recognize strengthsand
development early. It has to be paid attentionto theweaknesses. It is important that the analysis is just
fact, that data from other company areas have theirthefirst step, from the analysis measures have to be
dateof origin before the accounting data. An exampledeveloped whoseimplementation has to be observed.
for this isControlling is important for all enterprises, in good as
Orders in Process. This is not grasped in theindifficult times. Good Controlling can preserve an
accounting. Theaccounting receives information aboutenterprise fromsuffering damage and in difficult times
an order only when it hasbeen already issued anit helps to find andmaintain the right way. A
invoice. Therefore Orders in Process issuitable as anControlling system that consists ofstrategic and
early indicator for the Controlling.operational analyses is a useful guidance system.
Also other data can offer explanation about theFurthermore the information from these analyses can
businessdevelopment. Thus the number of customerbe used forthe preparation and realization of
contacts, new customersor complaints (within aconsultant assignments. Thuswith insecurity about the
certain period) is an alternative to findout how theactual position of the own enterpriseor about the
products and services of the business are acceptedfurther approaches, an expert can be
inthe market.consultedwithout the need to carry out basic
Strategic and operational Controlling differ in theiranalyses once again. Thisleads to higher efficiency
attempts,nevertheless, they are a supplement tooand saves the liquidity of theenterprise.
each other. Requirementfor a good operationalFrom the above the assumption arises, that a
Controlling is a strategic Controllingwhich focus oncombination ofstrategic and operational Controlling
circumstances like working processes,and occasional short-termconsultant assignments will
productinnovations due to changed customer needs,be the optimum to protect theexistence of a
personnel developmentas well as to acquisition ofbusiness.
customers and the search for newsources of supply.