www.controllerverein.com Controlling - Creating Future

Publisher: International Controller Association ICV | Poznań Office

Dear Readers! The spring and the beginning of summer was full of contro-lling events of the ICV. First the 7th International Controller Congress in Poznan, then the oldest Controller Congress in Munich with handing out the ControllerPrize, then the Convention in Belgade, Congress in Barcelone, Conferen-ce in Kaliningrad… Did I mentioned everything? It was a jump into deep water! Great speakers, fierce discussions, new acquaintances — all with an aim to increase efficiency and lead to success of a company. I’m sure this year we managed to create many places to develop controlling skills and enrich our controlling com-munity. And although we’re in the middle of holiday season we don’t forget about events in the autumn: Dättwil bei Baden (CH), Berlin, Wien, Bled (SLO), Zagreb, Bonn, Lübeck, Steyr, Ehningen bei Stuttgart - some of them are already a tradition for ICV members and friends, some are brand new. Will you be able to take part in these events? You can be a witness of the beginnings of new ICV tradi-tions! If you are looking for knowledge we have as always an Controlling Magazine article for you. This time an interest-ing interview with Bundesbank principal Wilhelm Lipp, Head of the Controlling Department. Another interview you can read today is with Prof. Péter Horváth. Where are there opportunities and risks in managing ecological issues in the company? Where are there opportunities in ecologi-cal approach to development of the company and prod-ucts? Nowadays it seems to be important not just to con-sume, but also to care about our ambient. Green Control-ling — it’s a current top topic of the ICV. And then as always a portrait of one of the ICV Board members: this time we present Marcus Haegi — volunteer who helps the disables at their commune residence in Switzerland. Much pleasure while reading! And much sun during your

holidays!

Yours

Dr. Adrianna Lewandowska

ICV Board Member

International

Controller Association

ICV Bulletin | July 2013

In this issue:

Controlling at the Deutsche Bundesbank

7th International Controller Congress Con-trolling Intelligence Adventure „Higher effi-ciency—new tasks for a Controller”

Marcus Haegi—Board Member

Slovenia: 13th Adriatic ICV Controlling Conference

The 13th Adriatic ICV Controlling Conference: Beyond Controlling will take place on the October 17, 2013 in Bled in Slovenia. This is the day, when many controllers, managers, CFOs and others appear to Slovenia to discuss the influence of controling and controllers on the company's success. What is the “the secret sauce” that makes the most suc-cessful companies excellent? Lead-ing companies from the Adriatic region will help us answer the ques-tion of how to achieve excellence

by combining and integrating different areas of a company and what the role of finance & controlling is in this endeavor. More information: Dragica Erčulj, Head of the Work Group

Slovenia, dragica.erculj@crmt.com.

November 5, 2013 The 1st International Controller Con-gress in Croatia to be held in Za-greb

Yet another event that will do a lot in terms of the promotion and affir-mation of controlling in Croatia and the region. November 5, 2013 it is the date of the 1st International Controller Congress in Croatia. Ja-smina Očko, Head of the Work Gro-up Croatia has started preparations: there are already some names on the speakers' list. The congress will be an ideal opportunity for the pres-entation of our colleagues from ICV work groups from around Europe. Preparations have been in full swing since early spring, and the congress has been advertised in leading business me-dia since May. If you have questions, please contact Jasmi-

CHOSEN EVENTS FOR ICV MEMBERS

IN THE SECOND HALF OF THE YEAR

ICV Bulletin | July 2013

Controlling at the Deutsche Bundesbank Specialised journalist (DFJS) Alfred Biel talks to Bundesbank principal Wilhelm Lipp, Head of the Controlling Department. Read the whole article on http://www.controllerverein.com/index.php?PHPSESSID=es3t6kq3c4jqbtvulet4d9fir2&id=168066

Controller Magazin started a series of interviews of Alfred Biel. This series of interviews will focus pri-

marily on topics that reflect current trends in and the outlook for modern

controlling, the aim being to give impetus to controlling practices. The idea for this interview came from a rather remarkable speech given by Dr Jens Weidmann, President of the Deutsche Bundesbank, at the 2013 “Business Journalism Day”. In

particular, this interview will exam-ine the special aspects of controlling

at public institutions and seek to pre-sent the controlling approach taken at the

Bundesbank to a broader expert public. Biel: If I might say so, Mr Lipp, as head controller of the “bank of banks” you are one of the reformers. You are one of the individuals who initiated and shaped the “Management and controlling at public institutions” work group. This work group comprises senior representatives from 17 central and state government authorities whose shared goal is to ad-vance the development of management and controlling in the public sector. Academic guidance is given to the work of the work group by Professor Hirsch and Professor Weber of the Universität der Bundeswehr München (University of the Fed-eral Armed Forces Munich) and the WHU – Otto Beisheim School of Management. For our readers, here is the link to the work group: https://www.unibw.de/ifc/forschung1/arbeitskreis-steuerung-und-controlling-in-oeffentlichen-institutionen (query 18 May 2013; available in German only). What is it that motivates you? What do you hope to achieve in this work group, and what do you want to achieve for con-trolling? Lipp: Through the work group we are able to exchange infor-mation and experience with controllers from a variety of pub-lic institutions, allowing us to reflect on our own approaches to controlling. Broadly speaking, I hope that the work group’s findings and the positive examples of controlling practice at public institutions will help to stimulate a process of change that leads to a modern style of controlling in the public sector. Biel: The term “new management” has been used repeat-edly when approaches from the public sector were adapted to the particularities of the public service sector and applied there. Observers might be led to believe that these efforts failed to meet all the expectations. Clearly, the work group was set up in March 2010 to instil fresh vigour into these endeavours. On the other hand, many public administrations have shown an unmistakable degree of willingness to em-brace reform for some time now. For e x a m -ple, I had the pleasure of pub-lishing in the 4/11 issue of Con-troller Magazin an interview with Dr hc Frank-J Weise on the topic “Innovations in controlling in the public sec-tor – using the example of the Federal Employment

Agency”. If I am correctly informed, the “new management” master plan is the topic for the year 2013, following “conceptual design of controlling” and “strategic manage-ment” in the years before. How do you view, or where do you see innovations in public sector controlling in 2013, and what trends are becoming apparent? Lipp: I would say that it’s not so much about bringing innova-tion to controlling. It is much more important to anchor con-trolling in the public sector in a sustainable manner. Some useful approaches did fail in the past, which is why there is no shortage of opposition to this topic among politi-cians, executives and employees. This opposition needs to be countered by persuasive arguments and offers of support, which is where the work group enters the picture. The work group seeks to assist interested institutions by providing a so-called blueprint for the introduction of tar-get-oriented management at public institutions. Amongst other things, the work group gives answers to questions such as, “What are the important factors when taking the first step?”, “How can we con-tinue from there in the next phase?” and “How can the proc-ess be entrenched?”. Biel: Then perhaps that is an inno-vative approach after all …? Lipp: ... Yes, it could be called innovative, given that there has been no such “blueprint” for public institutions to date. Biel: The example of the work group and that of the Deutsche Bundesbank in particular are proof that, today, controlling is no longer an issue that is confined solely to profit-oriented enterprises in the private sector, but that it is widespread among public-interest and public institutions as well. Could you give us a general idea of control-ling at a public institution? Please outline for our readers what the tasks and objectives of controlling are at the Bundesbank and how you support the Bank’s work. Lipp: The starting point and the basis of all controlling activi-ties is the Bundesbank’s business strategy, in which the Con-trolling Department plays a major part. For the Bundesbank as a public institution, its prime consideration is its statutory mandate, which is enshrined in the Bundesbank Act and other laws. As an integral part of the Eurosystem, moreover, the Bundesbank also has to respect the mission statement, the strategic intents and the organisational principles of the Eurosystem. In addition, as an “ancillary condition” set by the management, we are also required to observe the principle of efficiency of service provision. In view of this, the Controlling Department of the Bundesbank sees itself as a service provider whose task it is to support the target-oriented man-agement of the Bundesbank and its operating units by the decision-makers. What is crucial in this context is that strate-gic and operational controlling are closely interconnected.

© International Controller Association ICV | Poznań Office

ICV Bulletin | July 2013

Sustainable development – an interview with Prof. dr dr h.c. mult. Péter Horváth conducted during 7th International Controller Congress

We live in a changing, volatile environment. We don’t know what the future shall bring. Where now do you see the opportunities and risks in managing ecological is-sues in the company? Nowadays it seems to be impor-tant not just to consume, but also to care about our am-bient. Where do you see opportunities in ecological ap-proach to development of the company and products? I think we have no chance to work without ecological aspects in a company, because there are law and rules, that every enterprise has to fulfill and, of course, it’s important to do that in an efficient way. Managing ecological issues is also an important task for a controller. But, on the other hand, it is essential to be aware of the fact, that now, in many markets and products, customers expect goods, which are ecologi-cally clean and, as a company, we have to live up to these expectations by finding in our range of products the relevant ones. In my opinion in the future every company will have to deal with this topic. It means that in ten-years-time every single company must be an ecological company. And are there any risks or threats? Of course there are risks, but ones that are the same for every any other company. One of the main is the fact, that fulfilling law orders is costly. The other risk is not finding spe-cific products or market niches for ecological success. But, in my opinion, this is a kind of risk, that every company has to deal with nowadays. And there are general risks every com-pany has, because of the turbulences and volatilities in our economy. Could you indicate at what goals should an ecologically-friendly company aim? I think that objective goals in a market economy are still the same – we must be profitable – that’s it. And I think that it is important to know that sustainability and economy are not enemies – enterprise could be successful with green topics and products. How important are the control procedures for environ-mental management? It’s as important as any other processes of control, because product costs depend on the efficiency of processes, and also – in a broader perspective – perhaps even market suc-

cess, since bad processes are bad successes in the market. Why is it important to involve top management in build-ing environmental awareness of the company and what arguments in this process are crucial? First of all it is important, because it is a matter of strategy. Furthermore the crucial argument is that the future success of a company cannot be separated from green issues. What could be the consequences of inadequate environ-mental management? If one doesn’t valuate environ-mental management enough? There is a problem with governmental authorities, because now there are so many important rules in this field and if you don’t fulfill them there are high fines and entrepreneur won’t be allowed to manage his own company in future. Without ecological aspects companies existence is at risk, I would say. Can ecology be economical? Yes, of course. I would say more – not even it could be – it must be, because today’s customers want sustainable prod-ucts, the market demands them and there’s no other way. What are the key indicators that can be used for control-ling ecology in the enterprise? There are a lot of them. The top KPI is profit of course, profit and cost. Depending on which market the company works on, it needs different set of KPIs. In many fields there are i.e. carbon dioxide or water. For example, in German company, Hansgrohe, the main issue is water, in other company it could be usage of energy. Everyone has to analyze for himself what are the key performance indicators in one’s company and then ask, how big impact it has on a business success.

Thank you for your time. Ewa Guzek, Controlling Magazine, Editor Since April 2013 ICV Poland cooperates wth the Controlling Magazine PL. In ex-change for content to the magazine, the pages prepared by the ICV Experts are marked with an ICV logo.

© International Controller Association ICV | Poznań Office

7th International Controller Congress Control-ling Intelligence Adventure „Higher efficiency—new tasks for a Controller” The CIA Congress Poznań has gained the reputation of the only international congress of the ICV association organized in Europe. Top quality technical knowledge, great speakers and reliable organization make our congress a must-go for all con-trollers and chief financial officers who are keen on continuous improvement of their competences. This year there were more thank 160 participants from Poland and countries, also from Singapore. The topic “Higher effi-ciency – a new task for a Controller” attracted Polish and inter-national controllers, CFOs and managers who want to be suc-cessful in their work. Among international speakers were ICV members: Prof. Péter Horváth, Dr. Walter Schmidt, Dr. Her-wig Friedag and Valentin Usenkov. Facing the challenges of the economics of the 21st century was the theme of the Congress. How do Polish and foreign controllers want to build the success of their business? What do they do to be able to say proudly, "Our efficiency is gro-wing despite the crisis"? Together with our guests we spent two days discussing how controlling can affect the efficiency, productivity, innovation, and longevity of the company.

ICV Bulletin | July 2013

Having projection on boom and crisis. To design controlling to withstand volatility! Dream Car of the “Ideenwerkstatt” at the ICV 2013

The aim of the ”Ideenwerkstatt” (Dream Factory) of the International Controller Association (ICV) is to systemati-cally observe the field of controlling and recognize major trends. From this, the Dream Factory develops the “dream cars” of the ICV, thereby making a major contribution to en-suring the ICV is seen the leading voice in the financial and controller community. Ideas and findings are transformed into concrete, working products in ICV work groups or other project groups. Members of the Dream Factory are renow-ned representatives of the field of controlling from the corpo-rate world and academia. This year we present the third Dream Car Report of the “Ideenwerkstatt”. In 2010 and at the beginning of 2011, the Dream Factory tackled the issues of “Green Controlling” as an answer from controllers to the increasing ecological orien-tation of the economy. The trigger for choosing the theme in 2011 and 2012 came from the finding that the work of the controller often does not lead to the desired behavior

effects among recipients of controlling services, namely ma-nagers. Approaches from psychology can provide explana-tions and solutions here, which in turn help avoid incorrect decisions being made in the company. We always strive to tackle the most relevant, innovative topi-cs and thus to provide the controller community with impor-tant stimuli. Our third report is dedicated to the topic of “Volatility”. Volatility is becoming an increasingly dominant factor in business. It strikes increasingly often both in all aspects of the business environment and in companies them-selves and those strikes are becoming increasingly serious and increasingly unexpected. What can managers and con-trollers do about this? Hence, we ask the question, “How can we design our control-ling to withstand volatility?” More: http://www.controllerverein.com/News.125051.html

© International Controller Association ICV | Poznań Office

Controlling is a key success factor for companies in German-speaking countries. However, there are often uncertainties about what the essence of Controlling really is. Hence, this paper aims to provide an up-to-date view of the term “Controlling” and the role of the controller. At the same time, it defines the position of the International Controller Association (Internationaler Controller Verein, ICV) and the International Group of Controlling (IGC). Our starting point is the understanding of “Controlling” deve-loped by Albrecht Deyhle. It is characterized by three featu-res: target-oriented control, controllers and managers acting as a team, and interplay between analytics and soft factors. Since Albrecht Deyhle’s core ideas were first formulated, the practical application of Controlling has spread rapidly. At the same time, it has undergone change and further deve-lopment. In particular, new developments have taken place in terms of scope of activities (strategy, risk, sustainability), futu-re orientation (e.g., early warning) and the role of the control-ler (proactive, jointly responsible). Additionally, certainly in large companies, controllers as a group (the “controller com-munity”) play an essential role today. Thus, this paper reviews Albrecht Deyhle’s basic ideas and, in view of the aforementioned developments and scholarly debate in the field, gives a brief and up-to-date perspective on the concept of “Controlling”. Controllers cannot perform their tasks alone; they collaborate with other management support functions (e. g. accountants) and, in most cases, also with other controllers. In the case of the other management service providers, it is necessary that close cooperation takes place. Competitiveness is damaging to all parties. Controllers can only be successful through co-operation. If a company has several controllers, the Controlling depart-ment needs to be organized appropriately. This starts with a mission statement and ranges from establishing a controller community to determining procedural relationships and lines of authority in the Controlling department.

The essence of Controlling – the perspective of ICV and IGC

The Statement is now available in seven languages.

M o r e : h t t p : / / w w w . c o n t r o l l e r v e r e i n . c o m /International_Controller_Association_EN.122443.html

© International Controller Association ICV | Poznań Office

ICV Bulletin | July 2013

Social responsibility close to the heart Deyle disciple, from junior controller at Coca Cola, over senior controller at Vorwerk to head of controlling of a Swisscom sector, now owner of his own consultancy, husband and father, sport fun and... For his 50th birthday, Marcus Haegi asked his party guests – and with fantastic results – for donations to-wards the expensive equipment of a disability assistance vehicle. The Swiss ICV Board member has been acting as a voluntary board member for "Wydehöfli" (http://www.wydehoefli.ch), a therapeutic residential home and community, for many years. Social responsibility is close to the heart of the man confessing “Deyle disciple”. More than 20 years ago, he met Dr Albrecht Deyle at the Controller Academy and, as Marcus Haegi emphasises, developed a lot of respect for him. His training here was the foundation for a successful controlling career: from junior controller at Coca Cola, over senior controller at Vorwerk to head of controlling of a Swisscom sector. Finally, the internationally successful country controller Marcus Haegi rose to become the CFO of a medium sized Swiss plant con-struction firm. Following the completion of his part-time studies for a Master in Corporate Finance, he started his own consul-tancy “approprax” in the areas of Controlling, Ac-counting and Corporate Finance in 2008. As the International Controller Association (ICV) had of-fered him substantial support throughout his professional life, Marcus Haegi is “happy to return” the favour with voluntary involvement. The membership initiated in 1994 therefore consistently became something bigger: Col-laboration in a regional work group, then deputy and later head of the work group. In 2007, he followed in Hermann Jenny’s footsteps and became a member of the ICV Board and since 2008, he also moderates the annual conference of the Swiss work groups. Married for 21 years, father of an 18-year-old son and a

15-year-old daughter, Marcus Haegi is passionate about family sports – of the typical Swiss variety: In the winter, he shoots down into the valleys on his skis, in the summer, he enjoys leisurely games of golf on delightfully scenic greens.

By the way: Even with his latest, socially engaged hobby, Marcus Haegi could not deny his professional controller passion: The start-up consultancy of two young founders of a small home brewery in Basel has now culminated in a “directorship” of the "Baselbieter Brauerei AG“. Even here, the man of pleasure, Marcus Haegi, is committed to more than just selling beer under the slogan of “E Schluck Häimet” (“A drop of home"). Ecologically and economically responsible operation aims to bring the north-western Swiss region known as "Baselbiet" closer to the people, 500 of which have also bought into the business as minority shareholders, and to impart a piece of home. Cheers to that!

Hans-Peter Sander ICV Press Manager

In this issue the next caricature of the series presen-ting the Members of the ICV Board with tongue in cheek. In this issue we have Marcus Haegi’s turn. Your Bulletin Team —in the hope that the Board has sen-se of humor...

As the International Controller Association (ICV) had of-fered him substantial support throughout his profes-sional life, Marcus Haegi is “happy to return” the favour with voluntary involvement.

ICV Bulletin | July 2013

Bosna and Hercegovina Slavko Simić bono@blic.net Bulgaria Denko Yamboliev denko@excite.com

Croatia Jasmina Očko jasmina.ocko@kognosko.hr Great Britain Milena Heim milena.heim@gmx.net

Estonia

Toomas Haldma

toomas.haldma@ut.ee

Lithuania Edita Gimžauskienė edita.gimzauskiene@ktu.lt

Hungary Budapest 1 Ervin Nemesdy nemesdy@mce.hu

Budapest 2 Andreas Kovacs akovacs@mcskft.hu

Poland Gdańsk Robert Panufnik rpanufnik@gmail.com

Katowice Anna Jarkulisz anna.jarkulisz@arcelormittal.com Kraków Dorota Gołąb-Bełtowicz dbeltowicz@bonifratrzy.krakow.pl

Lublin Paweł Rafalski pawel.rafalski@solet..pl

Łódź Karolina Zielińska karolina.zielinska@icv.pl

Poznań Dariusz Gulczyński dariusz.gulczynski@icv.pl

Szczecin Aleksander Socha aleksander.socha@ramirent.pl

Toruń Andrzej Derkowski andrzej.derkowski@neuca.pl

Warszawa Karol Sikora karol.sikora@icv.pl

Wrocław Honorata Ulatowska honorata.ulatowska@icv.pl

Zielona Góra Małgorzata Lepak malgorzata.lepak@icv.pl

Romania Cristina Hodea cristina.hodea@gmail.com

Russia Valentin Usenkov zhoom@mail.ru

Serbia Bojan Šćepanović mcb@eunet.rs Slovenia Dragica Erčulj dragica.erculj@crmt.com

Spain Ulrich Müller Bosom ulrich.mueller.bosom@gmail.com

Imprint

Publisher and Copyrights:

International Controller Association

Public Relations Committee

Editing

Brigitte Dienstl-Arnegger

Dr. Adrianna Lewandowska

Hans-Peter Sander

Anna Włodarczyk

International Controller Association ICV Office Poland Ul.Fredry 7/1 61-809 Poznań PL Phone/Fax +48 61 853 20 10 Mail: anna.wlodarczyk@icv.pl

GREEN CONTROLLING ICV TOP TOPIC

Green Controlling — it’s a current top topic of the ICV. Controllers are often responsible for the long-term strategy of the company. What's important for sustainable ecological activities and sustainable "green" controlling? We think you might be interested in the work of the ICV expert group Green Controlling (DE) headed by Karl-Heinz Steinke and work of the ICV Dream Facto-ry (Ideenwerkstatt DE) headed by Prof. Péter Horváth and Dr. Uwe Michel.

We would like to recommend you taking part in the competition for GreenControlling Prize that Péter Horváth-Stiftung in cooperation with the International Controller Association offers. More here. You can submit your sollution by August 31, 2013. Rewarded will be the best “green” controlling solutions — most innovative and most effective ideas with an aim to create ecolo-gic strategies, programs, projects and tools. Carbon Accounting & Controlling-Team of Deutsche Post DHL (DPDHL) was the winner in 2011 for ist controlling solution in the programme „GoGreen“. In 2012 Hansgrohe SE won for the project „Green Controlling – Green Profit – Green Future". Another ICV you can compete is: ControllerPrize 2014 (http://w w w . c o n t r o l l e r v e r e i n . c o m /Awards.158549.html)

All work groups in non-German speaking countries

ICV Mission Statement

The ICV is the biggest controller

organization in Europe being a non

-commercially oriented associa-

tion .

ICV Key Objectives

The ICV as an active

international network

enhances the function

of practically applied

controlling and the role

of the controller

in the responsibility

for successful

company management.