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2020 | Book | 1. edition

Organizational Purpose and Integrated Control Read chapter Read first chapter

Management Control with Integrated Planning

Models and Implementation for Sustainable Coordination

Authors: Lukas Rieder, Raef Lawson

Publisher: Springer International Publishing

Book Series : Management for Professionals

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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About this book

Management Control is the process by which managers at all hierarchical levels ensure that their strategic intentions are realized. This requires a management control system that enables managers to map external developments to the internal planning and control processes and to improve the coordination between all actors.

The book offers concrete guidance on how to build an integrated planning and control system. The requirements are derived from management models and from corporate management practice. The book presents the fundamentals and models, while also guiding readers through a comprehensive simulation model programmed in Excel. Using this model, readers can trace the dependencies, structures and calculation methods used in detail, and identify the effects on other areas. The goal is to provide a design template for the implementation of a decision-relevant management accounting system as well as for winning internal piloting indicators and early warning information that readers can use at their own organizations.

Given its focus, the book will be a valuable asset for managers and specialists, service providers, project developers, producers and traders, public enterprises, NGOs, consultants and lecturers in the fields of management, controllership and information technology.

Table of Contents

Frontmatter
1. Organizational Purpose and Integrated Control
Abstract
Analyzing management processes and procedures reveals in this chapter the requirements for the design of an integrated management control system. When developing an integrated planning and control system, the linkage between corporate policy and implementation must first be established. Sustainably successful organizations regularly create outstanding results by establishing this linkage, based on five critical performance controls. The development of these key areas needs to be managed holistically, in order to consider all business environments.
Lukas Rieder, Raef Lawson
2. Learning from Integrated Management Models
Abstract
In Chap. 1 various dimensions of management were analyzed. Starting from the corporate purpose some basic requirements for an integral management control system were derived. In this chapter, the completeness of the system is examined and, where necessary, supplemented by comparing it to other comprehensive management models. In our opinion, the St. Gallen Management Model (SGMM) and the Viable System Model (VSM) currently form the best basis for this comparison. Both design models were developed to present contents, processes, and structures of corporate management in all dimensions and to categorize the relationships between the various elements.
Lukas Rieder, Raef Lawson
3. Further Requirements for Integrated Planning Systems
Abstract
Every viable organization has to think from the customer, buyer, or market into the company and proceed accordingly when planning. This is because customers decide whether they want to evaluate an offer at all and whether they want to purchase the product or service offered and pay the requested price for it. Starting from the findings from SGMM, IMS, and VSM the basic principles of an integrated and decision-relevant management accounting system are derived. Additionally, it is analyzed how the system has to be adapted for different types of enterprises.
Lukas Rieder, Raef Lawson
4. Elements and Contents of Integrated Annual Planning
Abstract
This chapter presents the complete context of annual planning in terms of quantity, performance, and value. The emphasis is on the presentation of the connections between the sub-modules of planning. Based on a real example, the path from sales planning to the derivation of the budgeted balance sheet is explained in detail. All development steps can be reproduced in the simulation model.In the text we usually refer to the name of the worksheet (i.e., sheet “Regionalsales”).
Lukas Rieder, Raef Lawson
5. Recording Services, Cost, and Revenue
Abstract
This chapter shows how and in which detail to record the quantities, services, values, and sales actually produced. Entering the actual data is not only a prerequisite for determining the period results. By comparing the actual data with the plan data in Chap. 4, one can determine all variances in sales, products, and inventories and analyze them. The analysis of what happens in the cost centers is explained in Chap. 6.
Lukas Rieder, Raef Lawson
6. Comparison of Plans and Targets to Actuals
Abstract
Here comes the comparison of planned to actual data in all details. Starting with the individual orders and cost centers, it is shown step by step which factors and variances led to the management result of the period. The operating P + L and the balance sheet for the year are derived from this and the way to the external balance sheet is shown.
Lukas Rieder, Raef Lawson
7. After Planning Is Before Planning: New Year, New Challenges
Abstract
Based on the operational planning and control instruments presented so far, this chapter focuses on instruments for linking strategic and operational planning. Above all, it is necessary to analyze the extent to which operational developments support the achievement of strategic goals.
Lukas Rieder, Raef Lawson
8. Development in Subsequent Years
Abstract
Sustainable success requires the implementation of improvements here and now. Whether these efforts will also lead to improved market- and cost-positions can usually only be assessed through analyses over a medium-term period. The topic of this chapter is to enable this analysis with the proposed management control system.
Lukas Rieder, Raef Lawson
9. Pilot Control and Early Warning
Abstract
Increasing complexity of corporate management often leads to longer decision-making and preparation periods. In addition to planning for the coming year, there is also an increasing need to think ahead about medium-term changes and the corresponding necessary planning. Managers should be aware of decisions and actions that have to be taken for the annual plan-year, the consequences of which will only unfold in later years.
Lukas Rieder, Raef Lawson
10. Consequences for Medium-Term PlanningMedium term planning
Abstract
Quantity, performance, and project-related planning are also recommended in medium-term planning. They increase the planning effort compared to purely value-based multi-year planning. However, the effects of capacity-, process- and headcount-developments can better be quantified. This makes it easier to assess the midrange development of market and cost positions.
Lukas Rieder, Raef Lawson
11. All Systems Coordinated?
Abstract
This short chapter summarizes the extent to which the proposed system provides the useful basis for management control and the decisions to be taken within it.
Lukas Rieder, Raef Lawson
12. Documentation of the Simulation ModelSimulation model
Abstract
The purpose of the simulation model is to provide an application example of an uncompromising management accounting system with planned, target, and actual data. It focuses on continuous performance and quantity orientation. It:
Lukas Rieder, Raef Lawson
Backmatter
Metadata
Title
Management Control with Integrated Planning
Authors
Lukas Rieder
Raef Lawson
Copyright Year
2020
Publisher
Springer International Publishing
Electronic ISBN
978-3-030-48302-9
Print ISBN
978-3-030-48301-2
DOI
https://doi.org/10.1007/978-3-030-48302-9