The most important facts in brief:
Strategic controlling is a key management tool for companies that focuses on securing long-term success. In contrast to operational controlling, which pursues short-term goals and measures, strategic controlling focuses on achieving sustainable competitive advantages. It supports management by providing relevant information and analyses in order to make strategic decisions and actively shape the future of the company. Trends, market analyses and corporate goals are harmonized to ensure holistic planning and control.
Introduction to strategic controlling
Definition and meaning
Strategic controlling is a long-term management tool that supports companies in achieving their strategic goals and positioning themselves successfully in the market. It aims to provide company management with decision-relevant information in order to identify opportunities and risks at an early stage and develop sustainable strategies on this basis.
Important objectives of strategic controlling:
- Ensuring long-term existence and competitiveness
- Development of strategies to adapt to market changes
- Support in achieving corporate goals through continuous analysis and control
- Long-term planning to secure potential for success and innovation
Strategic controlling therefore plays a key role in determining the company's direction and helps to actively shape the company's future.
Tasks and functions of strategic controlling
Strategic controlling fulfills a number of central tasks in companies that aim to ensure the long-term orientation and success of the company. This involves not only planning and controlling, but also the continuous monitoring and adjustment of strategic goals.
Important tasks of strategic controlling:
Analysis of the business environment: By looking at market trends, competitive developments and technological changes, strategic controlling helps to identify external opportunities and risks at an early stage.
Formulation of strategies: It supports company management in the development and formulation of sustainable corporate strategies aimed at long-term success.
Risk management: A key component of strategic controlling is the identification and assessment of potential risks that could jeopardize the company's success.
Monitoring strategy implementation: Strategic controlling ensures that the strategies developed are actually implemented and that deviations are identified and corrected in good time.
| Role | Responsibility |
|---|---|
| Project manager | Responsible for analyzing and managing communication. |
| Stakeholder | All persons or groups who are influenced by or influence the project. |
| Companies and organizations | Institutions that are directly or indirectly associated with the project. |
Functions of strategic controlling:
- Planning function: Strategic controlling supports long-term corporate planning by providing data and analyses that serve as the basis for well-founded strategic decisions.
- Control function: Regular target/actual comparisons are used to check compliance with strategic objectives and, if necessary, to initiate corrective measures.
- Information function: It ensures that company management has all the relevant information at its disposal to make well-founded decisions.
- Coordination function: Strategic controlling coordinates cooperation between different departments to ensure that all areas of the company are aligned with the strategic objectives.
Strategic controlling instruments
Strategic controlling uses various instruments to facilitate important decisions and achieve long-term corporate goals. Three of the most important tools are briefly presented below:
SWOT analysis
The SWOT analysis helps to identify the company's internal strengths and weaknesses as well as external opportunities and risks. It provides a clear basis for developing strategies that build on strengths, minimize weaknesses and at the same time control risks while making the most of opportunities.
Portfolio analysis
The portfolio analysis evaluates various business areas or products of a company based on their market growth and market share. It supports strategic decisions about which areas should be further expanded or discontinued. A common model for this is the BCG matrix, which classifies business areas as "stars", "cash cows", "question marks" or "dogs".
Balanced scorecard
The balanced scorecard expands the traditional focus on key financial figures to include additional perspectives: Finance, customers, internal processes and learning and development. This tool provides a comprehensive overview and ensures that corporate strategies are managed and monitored holistically without delays.
Implementation of strategic controlling in companies
The successful implementation of strategic controlling requires careful integration into the existing corporate structure. It is not a one-off project, but a continuous process that involves all levels of the company. In order for strategic controlling to be fully effective, several steps must be taken into account:
1. integration into corporate planning: Strategic controlling should be part of corporate planning from the outset. This means that the long-term corporate goals and strategies should be clearly defined and regularly reviewed. Only in this way can strategic controlling provide relevant data and analyses that are helpful in reviewing and adjusting these goals.
2. support from top management: Without the support of top management, strategic controlling remains ineffective. It is crucial that top management actively promotes strategic controlling, integrates it into decision-making processes and takes the results seriously. Only in this way can strategic decisions be based on sound analyses and successfully implemented.
3. linking with operational processes: Although strategic controlling is geared towards long-term goals, it must be closely linked to the company's operational processes. This enables a seamless implementation of strategic plans in the daily business process. Close cooperation between strategic and operational controlling ensures that strategic goals are realistic and achievable.
4. continuous adjustment and review: Market conditions, competitive landscapes and technological developments are constantly changing. It is therefore important that strategic controlling is regularly reviewed and adapted. This is the only way to ensure that the company reacts flexibly to changes and adapts its strategies accordingly.
The role of the strategic controller
The strategic controller occupies a central position in the company. He acts as an advisor to the management and supports the company management in making long-term decisions based on important analyses and strategic goals. His role goes far beyond the mere reporting of key figures - he is an active shaper of corporate strategy.
Main tasks of the strategic controller:
- Analyzing and interpreting data: The strategic controller collects and analyzes data on market trends, competitive developments and internal company processes. He prepares this information in such a way that it forms a solid basis for strategic decisions.
- Advising the management: As a close advisor to the management, the strategic controller ensures that all strategic decisions are made on the basis of sound information. They play a key role in preparing the company for future developments and evaluating strategic options for action.
- Monitoring strategy implementation: The strategic controller ensures that the strategies developed are also implemented. This is done by continuously monitoring the company's processes and comparing them with the strategic objectives.
- Coordination between departments: To ensure that all areas of the company are aligned with the strategic goals, the strategic controller coordinates cooperation between different departments. They act as an interface between operational controlling, management and the individual business units.
Important skills of a strategic controller:
- Analytical thinking: Strategic controllers must be able to analyze complex data and derive usable information from it.
- Communication skills: As the strategic controller often acts in an advisory capacity, it is important that he or she can communicate the analyses and strategies developed to the company management and other stakeholders in an understandable and convincing manner.
- Foresight: A strategic controller must always keep an eye on the long-term success of the company and anticipate future developments.
The strategic controller is therefore not just a numbers person, but an active driver of corporate strategy. By working closely with management, they play a key role in ensuring that the company remains strategically on track and that stakeholders are satisfied throughout the entire course of the project.
Difference between strategic and operational controlling
Although strategic and operational controlling both fulfill essential functions in the company, they differ significantly in their objectives and orientation. While strategic controlling focuses on securing the company's long-term existence and developing competitive advantages, operational controlling concentrates on the short-term management and optimization of processes.
| Strategic controlling | Operational controlling |
|---|---|
| Long-term goals | Short-term goals |
| Focused on the analysis of the business environment | Focused on internal processes and efficiency |
| Decision-making aids for the future | Management and control of day-to-day business |
| Use of strategic controlling instruments | Use of operational key figures for process control |
Long-term planning vs. short-term control
Strategic controlling pursues the overarching goal of ensuring the long-term orientation of the company. This includes analyzing market trends, identifying risks and defining measures to future-proof the company. In contrast, operational controlling focuses on the day-to-day monitoring of company processes in order to ensure efficiency and achieve short-term goals.
External analysis vs. internal control
Strategic controlling is primarily concerned with analyzing the corporate environment, such as market changes, new technologies and competitive conditions. Operational controlling, on the other hand, is more focused on internal processes and manages these using detailed key figures in order to maximize efficiency in day-to-day business.
Ensuring long-term success through strategic controlling
Strategic controlling is an indispensable tool for managing companies successfully in the long term. Through the targeted analysis of internal and external influencing factors, it helps company management to make well-founded decisions and to continuously optimize the strategic direction of the company. Using the right controlling tools, such as SWOT analysis, portfolio analysis and the balanced scorecard, makes it possible to identify risks at an early stage and make optimum use of potential.
Ultimately, strategic controlling pursues the overarching goal of ensuring the long-term competitiveness and existence of a company. It not only supports the formulation of strategies, but also monitors their implementation and adapts them to changing market conditions.
With well-integrated strategic controlling, companies can react agilely to changes and maintain their position on the market in the long term.
Frequently asked questions
What is strategic controlling?
Strategic controlling is a long-term management tool that supports companies in achieving their strategic goals. It involves analyzing the company's environment and developing and monitoring strategies to make the company future-proof. In contrast to operational controlling, strategic controlling focuses on long-term orientation and securing success.
What does a strategic controller do?
A strategic controller analyzes market trends, competitive developments and internal company processes in order to provide management with sound information. They advise management on strategic decisions, monitor the implementation of the corporate strategy and ensure that long-term goals are achieved. Their role goes far beyond simply reporting figures and requires analytical skills and strategic vision.
What is the difference between operational and strategic controlling?
Operational controlling focuses on short-term goals and the management of day-to-day business, while strategic controlling pursues long-term goals and prepares the company for future challenges. Operational controlling primarily monitors internal processes and efficiency, while strategic controlling takes external factors such as market trends and competitive conditions into account in order to steer the long-term direction.
What does strategic control mean?
Strategic control is the process by which the implementation of strategic goals is monitored. It involves checking whether the planned strategies are being implemented successfully and whether they need to be adjusted in light of changing market conditions. It is an ongoing process that ensures that the company remains on course and achieves its long-term goals.
