Operational Controlling is a much different animal than Financial Controlling; it is all about working closely with the operating units in a Finance Business Partner capacity to ensure that operations are as cost-effective and efficient as possible in supporting strategy execution.
A great Operational Controlling team will be data-savvy, analytical, and flexible to satisfy the business’s needs.
SO, HOW DO YOU ASSESS YOUR OPERATIONAL CONTROLLING CAPABILITIES?
Take a look at the questions below to see how you stack up.
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Are inventory fluctuations analyzed and understood?
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Are manufacturing variances analyzed and understood?
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Is the business involved in the discussions and review of variances?
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Are the main cost drivers identified and tracked daily/weekly/monthly with the manufacturing plant and business? Are drivers specific and focused on actionable information?
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Are the COGS (Cost of Goods Sold) understood and accurate?
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Is a process in place to match the sales for the period with the costs of producing those units sold instead of just the units produced?
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Are there processes in place to value the inventory at the actual, not standard, value each month/quarter/year?
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Are reports lackluster, basic, flat, and one-dimensional or are the reporting tools used as dynamic storytelling devices?
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Does the business have unanswered questions around the COGS (Cost of Goods Sold)?
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Is the CM (Contribution Margin) per SKU (Stock Keeping Item) or manufacturing line understood and accurate?
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Are there concerns about profitable products subsidizing unprofitable products?
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Are analytical models built as reusable tools-> insert data, “magic happens,” out pops analysis? Or is each analysis exercise a single-use manual approach?
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Does the controller attend and substantially participate in leadership and operations meetings? Is their voice considered when making decisions? Are they relied on to produce vital information?
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Do analysis workbooks contain data for both the current and prior year where users can dynamically shift the analytics to any period? Or are single-period flat reports produced?
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Does the controller hold influence? Do they know the inside facts, figures, and happenings and act as a conduit of information? Do they know how the story before the results are published?
Updated: 5/23/2023
