About twenty years ago the objective of management control was to create reports, format the data that existed and even retrieve the data manually in certain cases. Collect files, enter them into Excel to analyze them. Since then, the profession has evolved and transformed; often in the shadows, it is today recognized within organizations for its added value. Following our first article in 2020 in DAFmag the “New face of the management controller” (read the article in french). Let's have a look at the new challenges always linked to technological developments, the economic situation and management increasingly based on information.
According to the study conducted by Grant Thornton & Paris Dauphine University (see the full study here), “What new challenges for management control”, 2024, we will notice the diversity of challenges and necessary skills.
1️⃣In 2024, the management controller is a business expert; precise knowledge of the company's field of activity is essential to provide precise data analysis. Even if he remains an adept user of technologies, and he must remain constantly informed of developments – the appearance of AI is transforming the tools, the management controller is increasingly refocusing on his core output, liaison between operational and strategic departments.
Raise operational needs
Bring the company's strategy down to KPIs and analysis
Communicate on the evolution of indicators with management and operational staff
Manage, transversal, during structuring projects (often they involve all of the company's departments)
2️⃣The management controller remains multifunctional, he analyzes, he advises, he communicates, he manages... depending on his audience, he must adapt the actions/skills. In its effort to support the strategy, it is obliged to adapt to change.
Even if technically, he must always know how to manipulate data and present it in a way that his audience can understand, the management controller must also be a good communicator; teamwork is essential, a good teacher and a driving force in driving change.
3️⃣The study by Grant Thornton and Paris Dauphine University highlights an interesting development, which reminds early 2000’ challenges for finance public, the return of “Costing and Cost Killing”. The periods of inflation and crisis that the world is experiencing in recent years have brought back an old concern: costing, profitability, cost management are once again at the top of the list with forecasting management as the main business skill. The economic situation has in fact increased the need for precise forecast models, and this is also why teamwork is essential.
If companies of a certain size clearly see the benefit of management control, there is no doubt that it can offer smaller structures a real means of optimizing their development.
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