Management Model

Control model - how does it work?

The aim and purpose of designing the management model is to successfully achieve the goals with the business model by implementing the measures defined in the strategy. The four basic building blocks for this - following Robert Simons - are the shaping of the culture, the design of the organization, the definition and monitoring of rules as well as the use of metrics - in new German Key Performance Indicators (KPI). Often the control model is shortened to the latter, whereby essential design dimensions are lost.

So, how does this work? On the basis of the business model, goals and strategy (see also Strategy Controlling), the organization, i.e. the allocation of roles and responsibilities, must be designed in such a way that the business model is optimally supported and the core processes are divided by the roles as smoothly as possible. Whether the organization is primarily geared to the market and customers, the product or the functions, depends on the requirements for individuality and speed on the one hand and scalability and economies of scale on the other. Experience has shown that this results automatically when the business model in the business canvas and the core processes are viewed emotionlessly. Depending on the basic culture, which can be made transparent with a culture inventory, the rules can be agreed on the basis of this organization.

The key performance indicator model can then be developed from the fundamental business connections that apply in every business model and the business model-specific key performance indicators that describe the levers in the business mechanism. The final step is to assign the key figures with the relevant characteristics to the responsibilities. This lays the foundation for reporting as well as for planning and incentive systems in the HR area.

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Our broschures for management model

Top management reporting: Focusing corporate management on real key performance indicators - Powerful control concepts are the prerequisite for effective management cockpits
  • Need for effective and transparent control information as a starting point for the introduction of a Management Cockpit
  • 4C approach to developing an effective management cockpit
  • Advantages and Benefits of a Management Cockpit
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Creating the foundation for effective performance management: The path from controlling to corporate management
  • Initial situation and basis for successful performance management
  • 4C approach: creation of an instrument matrix 
  • Benefits and results: Support for the overarching management of the company and its individual divisions
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Our experts for management model

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Stephan Grunwald
Markus Noçon
  • Group Reporting & Accounting
  • Performance Management & Controlling
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