Mastering Strategic Transformation of Controlling

We held a mini-interview with Prof. Dr. Lukas Löhlein, Director I Institute of Management Accounting and Control (IMC), WHU - Otto Beisheim School of Management, who will give a lecture on "Mastering Strategic Transformation of Controlling" at: CONTROLLING DAYS 2024, Strategija i transformacija, 23.-24.05.2024.

What are the strategic challenges of the Controlling function?

The controlling function is currently facing several „grand“ strategic challenges that are located in the context of digitalization, sustainability, and uncertain environments. They are „grand“ challenges because they are interconnected and mutually influencing. Sustainability Controlling, for instance, requires high-quality data to accurately assess environmental and social impacts, track performance against sustainability goals, and inform strategic decision-making. The required data infrastructure, in turn, can be provided through the digitalization of Controlling by automating data collection, using real-time monitoring and advanced analytics, and integrating diverse data sources to enhance transparency and traceability across different business units or supply chains.
 

What are the fundamental steps in strategically transforming a controlling function within an organization?

Given the particular, interrelated nature of these strategic challenges, any serious conversation on one of these strategic challenges entails acknowledging that they require a holistic and integrated strategic answer. Questions of sustainability and digitalization of Controlling should be approached together to ensure, for instance, that data-driven insights and strategic decisions align with environmental and social objectives while leveraging technological advancements effectively.
 

How can organizations ensure the active involvement and buy-in of key stakeholders, including executives, managers, and employees, throughout the controlling transformation journey?

The transformation of Controlling is both a technical and a cultural challenge. It is technical because it requires the adoption of new tools, contents and processes, which have to be technically learnt and implemented. It is also cultural, however. For instance, the best tools are only successful if it is made clear why and with which objectives they are used. If they are „accepted“ and consequently used. It is important here that Controllers not only understand the advantages and use of new technologies but also internalize them in such a way that they can use them in new ways and new areas of application.
 

What are the common challenges and potential pitfalls organizations may encounter during the strategic transformation of controlling, and what strategies can they employ to overcome these obstacles and ensure successful implementation?

As outlined, the strategic transformation of Controlling has technical and cultural facets. These have to be considered jointly. For instance, the Controlling function can not just introduce or demand a new Controller „mindset“. A new mindset that perceives the technical and cultural aspects, as well as the interrelated characteristics of strategic challenges of Controlling, cannot be implemented through cultural „workshops“ or new „roles“ but needs to be developed and nurtured in the daily work of the Controller.

You can learn more about Mastering Strategic Transformation of Controlling at: CONTROLLING DAYS 2024, Strategija i transformacija, 23.-24.05.2024.