15. 06. 2020.

WHAT ARE THE POSSIBILITIES FOR CRISIS MANAGEMENT?

The roles of managers and controllers

 

You can read the interview with Prof. Dr. Ronald Gleich below. He is Professor for Industrial Management, EBS Universität für Wirtschaft und Recht. You can find out more about his experiences on online Management Conference which will be held on Thursday, June 18th 2020.

What are some of controller roles in the International Association of Controllers (ICV) model „Four Phases of the crisis“?

In the first phase some of controller roles are:

  • Ensure transparency of liquidity and forecasts
  • Examine and organise aid programmes
  • Ensure data quality.

In phase two, the controller should work to ensure that liquidity is transparent and that forecasts are constantly updated. If possible, the controller should help to “bunker” cash.

Also,  later some of other controller roles / tasks as:

  • Scenarios and action plans / projects based on them are enhanced
  • New strategic controlling is established
  • Performance of strategy implementation is measured.

Figure 1: Phases of crisis management

Source: International Controller Verein, Think Tank

What are your suggestions about controller roles in this specific coronavirus pandemic?

“Liquidity before profitability before growth, but only if the security of the added value and value chain is guaranteed at the same time”.

Figure 2: Overview of phase-related focus for controllers

Source: International Controller Verein, Think Tank

In the current coronavirus crisis, considerations that play an especially important role are the health aspects and the right form of communication with employees and other stakeholders, as well as the motivation of employees.

Overall, the controller should redesign the strategic controlling mechanisms, perhaps by implementing a corresponding balanced scorecard or another adequate performance measurement and management system. New digital transactions in particular should be controllable by controllers. We are convinced the coronavirus pandemic will result in a large increase in this type of activity.

Why is collaboration of controllers and managers important in this situation?

We believe a rapid and rigorous assessment of the situation, and then action, are the top priorities. This can happen only if controllers and managers collaborate. In order to establish themselves sustainably as business partners, controllers can now “score” and, using their business expertise to support management, help reveal the right path to a successful future.

How companies should deal with their planned investments?

Replacement or expansion investments must be carefully examined in Phases 1 and 2; contracts may need to be suspended or renegotiated if necessary. Rationalisation investments should be seriously considered in Phase 3. We believe that investments in innovation, sustainability and digitalisation should be given special protection where feasible, since many companies’ important strategic goals are closely linked to them.

Is internal communication important for overcoming the crisis?

In the current coronavirus crisis, considerations that play an especially important role are the health aspects and the right form of communication with employees and other stakeholders, as well as the motivation of employees. This phase also requires that the responsible company managers investigate the potential use of government aid programmes, and additionally create the prerequisites for their possible use (e.g. reduction of overtime as a preparatory measure for applying for short-time work).

 

All lecturers and lecture topics are listed here: https://www.poslovnaucinkovitost.eu/aktualne-edukacije/cijena/menadzerska-konferencija-management-excellence-menadzerska-izvrsnost-18.06

 
 Novosti - Arhiva