03.09.2010

Controlling Herausforderungen und Entwicklungstendenzen in der Praxis

10. Controlling Innovation Berlin

Berlin, 18.September 2010

Dr. Ralf Eberenz

Planning

03.09.2010

Agenda

2

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

Three roles of a controller

Think visionary, but act entrepreneurial

Implement recommendations proactively

Project management

“We focus on the

future business

success”

Combine methodological know-how with business sense

Recognize need for decisions, proactively identify alternatives

& business recommendations

“We take care of

sound & informed

decisions”

Standardized financial systems & processes

Few, but reliable, KPI„s & financial instruments

Planning, reporting & forecasting

“We provide

financial stability &

transparency”

03.09.2010

Three roles of a controller contribute to add value

„We focus on the future business

success”

“We provide financial stability &

transparency”

„We take care of sound &

informed decisions”

Added value Challenge

Comfortzone

„Advisor“

„Controller“

„Accountant“

03.09.2010

Agenda

5

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

Required skill set differs according to the controller’s role

„Advisor“

„Controller“

Added value Challenge

Comfortzone

Project &

soft skills

Methodical

skills

„Accountant“

03.09.2010

Increasing demand for project & soft skills

Project &

soft skills

Methodical

skills

Project skills

Differentiation project vs. task

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

03.09.2010

How to increase efficiency?

8

03.09.2010

Role Model Orientation might help…

9

03.09.2010

…to capture efficiency potentials

10

Planning

Ste

eri

ng

Pro

ce

ss

es

P

roje

cts

O

pera

tin

g

Forecasting

Budgeting.

Marketing Subs. China

Growth Initiatives

Others

Strategic Planning

KPI

Portfolio Management

WoC

Transfer Pricing

Subsidiary Controlling

Tools

Corporate Controlling

Functional Controlling

Corporate Controlling

Unit Controlling

Policy Consulting Production

Decentral

Controlling

Affiliate, Division Activities

03.09.2010

Agenda

11

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

“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

P&L Statement

“We provide financial stability & transparency”

Example: Identical external and internal accounts

SAP FI SAP CO

“Cost allocation” “Cost origin”

Statemt. of Income

Financial Reporting (HGB) Management Accounting

and Group reporting (IFRS)

SAP SD SAP MM

03.09.2010

“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

Agenda

15

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

„We focus on the future business success”

Example: Controlling and Risk Management

Strategic Monitoring

Standard Reporting &

Forecasting

Operative Planning

Cornerstone 1: Superior Brands

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Brands on track withBrands Portfolio

Launch/RelaunchProjects on track

Number of BNRs(dev. vs. 12/2004)

Cornerstone 1: Superior Brands

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Brands on track withBrands Portfolio

Launch/RelaunchProjects on track

Number of BNRs(dev. vs. 12/2004)

Cornerstone 2: Superior Supply Chain

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Working Capital in % of NS

Supply Chain Costsin % of NS

Service Level in %

Cornerstone 2: Superior Supply Chain

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Working Capital in % of NS

Supply Chain Costsin % of NS

Service Level in %

Cornerstone 3: Clear Geographical Focus

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Growth in regions on track

W. Europe Growthabove Market

Growth in CRBI

Cornerstone 3: Clear Geographical Focus

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Growth in regions on track

W. Europe Growthabove Market

Growth in CRBI

Cornerstone 4: Superior Talent in Lean Orga

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Admin. Headcount in % of Total

Talent Recruiting/ Develop. Rating

Acquisitions:Net Sales acquired

Cornerstone 4: Superior Talent in Lean Orga

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

Admin. Headcount in % of Total

Talent Recruiting/ Develop. Rating

Acquisitions:Net Sales acquired

Objectives

Net Sales Growth

Return on Sales

Worldwidemarket share

Key projects

on track

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

xxxxxx

Objectives

Net Sales Growth

Return on Sales

Worldwidemarket share

Key projects

on track

xxx

xxx

xxx

xxx

xxx

xxx

actual Target 2010

xxxxxx

Annual

Business

Plan

(ABP)

Annual

Business

Plan

(ABP)

Product

Marketing

Plan

(PMP)

Product

Marketing

Plan

(PMP)

Supply

Chain

Plan

(SCP)

Supply

Chain

Plan

(SCP)

Identify Evaluate Steer Risk

Management

03.09.2010

17

Integrated Risk Reporting

„Sitzung Ressortleitung“

„Sitzung Hauptfunktion“

Risk Report Functions

Board

Risk Report Beiersdorf AG

Reporting Cycle: Quarter

Corporate Risk Management „Risikoboard“

Management Units

Regional Controlling Responsible

Boardmember

Risk Report Regions*)

*) Integral Part of Standard Report

03.09.2010

„We focus on the future business success”

Example: Financial Scenario Modeling

Objective: Integration of growth and profit initiatives and additional strategic

plans into comprehensive financial model (2008 – 2015) for the entire BDF

Consumer Business

Growth

Work Packages

Profit

Work Packages

Enabling

Work Packages

Scenario

Modeling

Organi-

zational

Develop-

ment

Selective Business

Pharmacy Business

Mass Market Business

"Growth Focus“ Regions

"Profitable Growth“ Regions

"Profit Focus“ Regions

World Market

Share

Strategy Work packages

03.09.2010

Project result: Integrated financial model

Countries … Margin I

Net Sales growth

Face Body Decor. Cosm… Men … Hair

…

Net Sales

2008-2015

Categories

Time

Collection of strategic and

financial plans for categories

and countries

Development of integrated

financial model to simulate

impact of various initiatives

and parameters on an

ongoing basis

Integration of strategic plans

into comprehensive financial

model 2008-2015. Focus:

SOI

Strategy assessment and

decision support

03.09.2010

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

Pressure test Scenarios

FC M&S and Admin

with 50% instead of

80 % of NS growth

Higher raw material

prices

Grow according to

current Country

Portfolio

Lower BDF product

prices, but constant

cost level

Grow with market

Reference case

NS & EBIT

case

Only EBIT case

Strong €

Weak €

03.09.2010

Integrated approach for strategic scenario development

and financial evaluation

Scenario simulation

based on different

parameters

Overview of financial

conflicts/trade-offs

between Strategic

initiatives or with

financial targets

Potential resolution of

conflicts leading to

plausible overall

strategy

Business Portfolio

Quantify Strategy

Develop Strategy

O n g o i n g B u s i n e s s

Reference

Case

03.09.2010

Agenda

23

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

Did the Crisis change anything?

24

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

Did the Crisis change anything?

25

Hopefully!!!