Controlling

Controlling is much more than just number crunching: it is about navigating companies through economically turbulent times. Controllers analyse data, develop forecasts and advise management on strategic decisions. Prof Dr Jan Frohn and Prof Dr Nicola Stippel-Rosenbaum shed light on the variety of possible applications - from operational reporting to investment decisions - and show how practically oriented the degree programme at FH Aachen prepares students for this dynamic occupational field. Graduate Torben Wendland reports on his experiences as Manager Corporate Controlling.

What is the occupational field of controlling all about?

The best way to answer this question is with a picture. You have all realised that the economy is currently in very difficult waters. And you simply have to imagine that a company is a ship. And the controllers are now all on this ship and have to make sure that this ship can navigate through the rough seas quite well. In other words, they analyse the situation and draw up recommendations for the management.

Are there different job titles in controlling?

I would perhaps call them job profiles and the opportunities to work as a controller are very diverse. The jobs differ in terms of whether they are based in the head office or more decentralised in production plants or sales branches and whether you work more strategically on long-term issues or contribute operationally to short-term decisions.

Are there certain professions that are particularly popular?

When starting out, these operational profiles are more popular because you learn the basics there and perhaps also feel a little less pressure, which is perhaps also important at the beginning. Later on, however, the exciting strategic profiles are also attractive. There you can experience at first hand how important decisions are made in the company.

What activities and tasks are involved in Controlling?

The tasks are very varied, so I would like to pick out two important ones. Firstly, reporting, which is what you would call it in German. Here you calculate financial key figures such as turnover or margin, but also non-financial key figures such as capacity utilisation and delivery time. Then you comment on key trends for management and use this database to create a forecast up to the end of the year or a plan for the following year. To do this, you first develop a forecasting model that has to take into account the relevant opportunities and risks.

The second point I would like to emphasise is investment controlling. This is where you decide, for example, whether to invest in a new product or whether to develop this new product. Controlling builds a calculation model for this with the help of the other Sections. For example, the sales of this product are discussed with Marketing and possible production costs are discussed with Production. This is of course a challenge because you also have to be open to technical contexts.

Which modules prepare you for the occupational fields of controlling?

The basic modules "Introduction to Controlling" and "Cost Accounting" are compulsory for all students. If interest is aroused, students can then choose several specialisations in controlling. One of these is cost management, for example. Here, students learn how to actively organise cost levels and cost structures for a company. I explain various tools that can be used to analyse a value chain for improvements. In this module, students can also calculate very specific tasks in Excel. For example, how much a product may cost or which type of machine should be invested in.

How do you organise your teaching in a practical way?

I worked in Controlling at Bosch for eleven years, more than half of which I spent in management positions. I bring this experience into my teaching every day. For example, I develop my own practical case studies for my teaching. For example, the students have to develop a concept for a retail company on how it can be brought out of the red. Then there is a didactic concept called the Business Game. This is a method that is very close to my heart. Here, the students play a game and make decisions themselves, using all the knowledge they have acquired during their studies. They are then part of a company that competes with other student companies.

What qualifications and skills are necessary to be successful in controlling?

First of all, networked thinking. I have to recognise at an early stage how environmental risks affect my profit. I can then derive suitable corrective measures from this. Secondly, I have a technical interest. Controllers must critically scrutinise data on products and processes and not simply accept it. And that is of course not possible without a technical interest. The third is the ability to deal with conflict. As part of the planning process, limited funds are distributed throughout the organisation in the best possible way. Not every Section gets what it wants.

How much do you earn in your job?

Of course, I can't give you any specific figures here, but what I can say is that high-performing controllers can achieve above-average incomes compared to other commercial jobs. This is because they work very closely with the company management. The company management naturally wants to have the best people around them. And of course this is only possible with an attractive salary.

What are the job opportunities for controllers?

The digital and ecological transformations are associated with a great deal of investment, and controllers need to provide critical support. Especially in difficult times, companies need controllers who, as I said at the beginning, help with navigation. And that's why I would say that the labour market for controllers is relatively robust.