2. 2
Agenda
Practical Implementation of a Controlling Approach that matters
Organizational Development in Controlling
Effective and efficient Information Management
New Controlling Areas
Did the Crisis change anything?
03.09.2010
3. Three roles of a controller
“We provide Standardized financial systems & processes
financial stability & Few, but reliable, KPI„s & financial instruments
transparency” Planning, reporting & forecasting
“We take care of Combine methodological know-how with business sense
sound & informed Recognize need for decisions, proactively identify alternatives
decisions” & business recommendations
“We focus on the Think visionary, but act entrepreneurial
future business Implement recommendations proactively
success” Project management
03.09.2010
4. Three roles of a controller contribute to add value
Challenge
Added value
„We focus on the future business
„Advisor“
success”
„We take care of sound &
„Controller“
informed decisions”
“We provide financial stability &
„Accountant“
transparency”
Comfortzone
03.09.2010
5. 5
Agenda
Practical Implementation of a Controlling Approach that matters
Organizational Development in Controlling
Effective and efficient Information Management
New Controlling Areas
Did the Crisis change anything?
03.09.2010
6. Required skill set differs according to the controller’s role
Challenge Project &
Added value
soft skills
„Advisor“
„Controller“
„Accountant“
Methodical
Comfortzone skills
03.09.2010
7. Increasing demand for project & soft skills
Project & Project skills
Differentiation project vs. task
soft skills Project management competence
Act in diverse project roles (esp. project lead &
controlling)
Competence for pragmatic implementation
Soft skills
Targeted & comprehensive communication (across
hierarchies, divisions & cultures)
Creation & use of networks
Balance between Functional & Controlling
perspective
Achievement of acceptance due to alignment with
business processes
Drive to develop beyond defined objectives & tasks
Methodical knowledge
Controlling concepts & instruments
Finance & Accounting know how
IT know how Methodical
skills
03.09.2010
11. 11
Agenda
Practical Implementation of a Controlling Approach that matters
Organizational Development in Controlling
Effective and efficient Information Management
New Controlling Areas
Did the Crisis change anything?
03.09.2010
12. “We provide financial stability & transparency”
Example: Integrated accounting system
One reporting for external and internal requirements
One common financial language
Standard terms: Statement of Income, one sales term and cost of manufacturing
One IT-System for external and internal requirements
One organizational unit for Accounting and Controlling on corporate level
03.09.2010
13. “We provide financial stability & transparency”
Example: Identical external and internal accounts
Statemt. of Income
P&L Statement
“Cost origin” “Cost allocation”
SAP FI SAP CO
SAP SD
SAP MM
Management Accounting
Financial Reporting (HGB)
and Group reporting (IFRS)
03.09.2010
14. “We provide financial stability & transparency”
Example: Financial Information System CIS
Corporate Information System (CIS):
Information system of BDF financial data (affiliate & headquarter data as a basis for
internal analyses & external reporting)
Including balance sheet, statement of income, working capital…
03.09.2010
15. 15
Agenda
Practical Implementation of a Controlling Approach that matters
Organizational Development in Controlling
Effective and efficient Information Management
New Controlling Areas
Did the Crisis change anything?
03.09.2010
16. 16
„We focus on the future business success”
Example: Controlling and Risk Management
Strategic Monitoring Operative Planning Standard Reporting &
Forecasting
Cornerstone 1: Superior Brands Cornerstone 2: Superior Supply Chain Annual
actual Target 2010 actual Target 2010
Brands on track with
Brands Portfolio xxx xxx
Working Capital
in % of NS xxx xxx Business
Launch/Relaunch xxx xxx Supply Chain Costs xxx xxx
Projects on track
Number of BNRs xxx xxx
in % of NS
Service Level in % xxx xxx
Plan
(dev. vs. 12/2004)
(ABP) Supply
Objectives
Net Sales
actual Target 2010 Chain
Growth xxx xxx
Return on
Sales xxx xxx Plan
Worldwide
market share
Key projects
xxx
xxx
xxx
xxx
(SCP)
on track
Product
Cornerstone 4: Superior Talent in Lean Orga
actual Target 2010
Cornerstone 3: Clear Geographical Focus
actual Target 2010
Marketing
Admin. Headcount
in % of Total
Talent Recruiting/
xxx
xxx
xxx
xxx
Growth in regions
on track
W. Europe Growth
xxx
xxx
xxx
xxx
Plan
Develop. Rating above Market
Acquisitions:
Net Sales acquired
xxx xxx Growth in CRBI xxx xxx (PMP)
Risk
Identify Evaluate Steer
Management
03.09.2010
17. 17
Integrated Risk Reporting
Board Reporting Cycle: Quarter
Risk Report
Beiersdorf AG
Corporate Risk
Management „Risikoboard“
Responsible
„Sitzung Ressortleitung“ Regional Controlling
Boardmember
Risk Report Risk Report
Functions Regions*)
„Sitzung Hauptfunktion“ Management Units
*) Integral Part of Standard Report
03.09.2010
18. „We focus on the future business success”
Example: Financial Scenario Modeling
Strategy Work packages
Growth
Selective Business
Pharmacy Business
Work Packages
Mass Market Business
World Market Organi-
Share
Scenario Profit zational
Modeling Work Packages Develop-
"Profit Focus“ Regions
"Profitable Growth“ Regions
ment
"Growth Focus“ Regions
Enabling
Work Packages
Objective: Integration of growth and profit initiatives and additional strategic
plans into comprehensive financial model (2008 – 2015) for the entire BDF
Consumer Business
03.09.2010
19. Project result: Integrated financial model
Countries Collection of strategic and
…
…
financial plans for categories
Margin I
and countries
Net Sales growth
Net Sales Development of integrated
financial model to simulate
impact of various initiatives
and parameters on an
ongoing basis
Integration of strategic plans
into comprehensive financial
Time model 2008-2015. Focus:
2008-2015 SOI
Face Body Men … Hair Decor. Cosm… Strategy assessment and
decision support
Categories
03.09.2010
20. BI tool and model characteristics
Professional BI tool for simulation
Combination of market data and Beiersdorf
data
Data consistency along parallel hierarchies
(e.g. board regions and geographic regions)
Splashing of e.g Net Sales to countries and
brands
Exchange rate effects
> 200 subsidiaries
> 20 categories
> 100 brand groups
Periods: 2006 – 2015
Domestic, export and total sales
03.09.2010
21. Pressure test Scenarios
Strong €
Lower BDF product
prices, but constant Weak €
cost level
Reference case
Grow according to
Grow with market current Country
Portfolio
FC M&S and Admin Higher raw material
with 50% instead of prices
NS & EBIT
80 % of NS growth
case
Only EBIT case
03.09.2010
22. Integrated approach for strategic scenario development
and financial evaluation
Reference Scenario simulation
Case Quantify Strategy
based on different
parameters
Overview of financial
conflicts/trade-offs
between Strategic
initiatives or with
Ongoing Business financial targets
Potential resolution of
conflicts leading to
plausible overall
strategy
Develop Strategy Business Portfolio
03.09.2010
23. 23
Agenda
Practical Implementation of a Controlling Approach that matters
Organizational Development in Controlling
Effective and efficient Information Management
New Controlling Areas
Did the Crisis change anything?
03.09.2010
24. 24
Did the Crisis change anything?
Macroeconomic situation remains difficult
C+T Market Growth remains slow
Consumers want more for less (Private Label!)
Customers continue to adapt structures drastically
Competition is further increasing
03.09.2010
