Supporting migration of management control from a “home-made” model to a more advanced group system.
The company produces automated packaging machinery. Turnover is about €80 million. The company is undergoing a phase of integration of their own systems with those of their parent company: from a basic management control system they are making the shift to a standardized group system. At the start of the assignment, their planning and control processes are neither well integrated nor perceived as useful management tools. They are seen, rather, as a “necessary evil”. There is also a plan to replace the current Head of Administration and Control and to appoint a Controller.
The company must ensure total compliance with the parent company’s accounting management procedures, thus guaranteeing a complete and swift integration with group practices. Contract Manager is asked to:
- Immediately provide support in the Management Control area, working alongside the General Manager and the group Controller.
- Draw up the company budgets for 2018 and 2019 together with the heads of the company’s functions and the General Manager.
- Define quarterly forecasts and monthly closures.
- Set the control system in motion and check the reliability of inputs and outputs.
- Take an active part in the selection of the new manager who will head up Management Control.
Contract Manager selected a qualified manager who immediately ensured compliance with all the requirements of the parent company, helping the company achieve higher organizational and procedural standards.
- Forecasts for the assignment period and the budgets for 2018 and 2019 were drawn up. A schedule, together with content, deadlines and accountabilities was similarly defined.
- Timely monthly closures and management reports were sent to headquarters on a regular basis.
- A plan was implemented for monitoring the quality of management accounting data produced, reconciling them with general accounts.
- Cost breakdowns by cost center were defined and a cost / product structure was aligned with group practices.
- The General Manager and the group Controller received immediate support, while updated management information was cascaded throughout the organization.
- The interim manager took an active part in selecting the company Controller, providing support to HR.