The role of the management controller

The management controller plays a particularly important role in a company. A true pillar in decision-making, their main missions consist of analyzing practices and strategies implemented within an organization to better manage their performance. However, their missions are not solely limited to that. Over time, the profile of the management controller has evolved to adapt to technological development and the acceleration of the economy. 

Even though their function is fundamental for all companies, their role is sometimes misunderstood.
So what is a management controller and why is their role essential? That is what we are going to explore right away in this article.

Management Control: Definition

A system particularly used in companies to control and measure performance. Management control proves to be an indispensable tool for decision-making. Management control has several uses:

• Drive activity and implement corrective actions

• Contribute to the establishment of a strategy and monitor its implementation

• Allocate the right resources at the right time, taking goals into account

It should be noted that management control concerns different areas of the company (human resources, accounting, customer service, etc..)

‍Complementarity and Differences Between Internal Audits and Management Control

The purpose of management control is simply to ensure the proper management of a company.
It is a complementary function to internal control and audits (financial, legal, process), which together provide a comprehensive view of the company's management and potential areas for improvement, and above all, ensure the proper achievement of the set objectives.

However, there are several differences between these two disciplines.
The management controller is generally directly linked to the general or financial management of the company. Furthermore, this individual daily uses quantitative results to analyze past performance and anticipate future performance as well as potential risks to the economic model of their company.
Internal control (and the resulting audits) has a more punctual dimension. The internal controller is more focused on compliance with operational processes and ensures that financial and human resources are well aligned to achieve the set objectives. These internal audits are carried out independently and ensure that laws and regulations are respected by senior management. 

‍What is the Role of the Management Controller

The main mission of the management controller is to assist an organization in its overall economic strategy and in optimizing financial profitability. To do this, they help define realistic intermediate budgetary goals based on data from different departments of the company, create dashboards to monitor the budget, and ensure performance tracking. 

To perfectly fulfill their missions, they must constantly adapt to performance analysis tools and take into account the requirements and constraints of the company they are in. Always on guard, they must have a comprehensive view of the market to address their supervisor’s questions.

The missions of the management controller vary depending on the sector and the structure of the company. Management controllers have sophisticated analysis tools, but it is imperative that they have a good understanding of the companies they work for. 

In these different structures, their missions will generally include:

• Implementing management and monitoring tools, procedures, and ensuring their use

• Preparing budgets 

• Regularly preparing reports related to the organization's activity 

• Monitoring any discrepancies between the forecasted objectives and the achieved objectives and proposing corrective actions

• Conducting a financial study

• Transmitting all important information that may serve the company's objectives

The Profile of the Management Controller in Small and Medium Enterprises

In a small company, management is usually handled by the same person responsible for finance and accounting. It is possible to have the same person in charge of accounting, finance, business management, or even human resources and IT. Moreover, the missions of the management controller in this type of structure generally rely simply on budget creation and performance monitoring. Notably, the smaller the company, the more involved senior management is in strategic decisions and the analysis of sensitive issues.

In contrast, in medium-sized structures, the management controller is more versatile and is assigned greater responsibilities (they will be closer to the overall activity, more involved in strategic decisions, and the analysis of confidential files). It is not uncommon for them to be tasked with managing a project from start to finish. The objective remains the same: to support the company in making better decisions.

The Profile of the Management Controller in Large Enterprises

In large enterprises, the management controller performs the following missions: 

• Preparation of budgets and possibly budget adjustments within the year 

• Analysis of results and profitability within the company and by product or service 

• Monitoring the company's performance through the establishment of several dashboards and indicators determined based on objectives and analysis of discrepancies

• Establishing control procedures 

• Preparation of monthly, quarterly, and annual closings;

• Reporting information to management and alerting in case of deviation;

• Recommending solutions and implementing corrective actions.

Overall, a management controller working in this type of structure will be assigned the same missions as in small and medium enterprises. However, the larger the company and the stronger and older the management control culture, the more robust the management function will be equipped. In this scenario, they can focus more on analysis and optimizing results.

The Skills of a Management Controller

Being a management controller requires a certain set of skills. Some are specific to the profession itself: 

• Have excellent knowledge of accounting 

• Have perfect mastery of essential office tools for their work (spreadsheets, databases, accounting software, etc.) and the company’s ERP 

• Master the analysis and processing of accounting and financial information;

• Be proficient in English;

• Be concise

In addition to rigor and organization, a management controller is expected to possess communication skills, managerial abilities, and a capacity for anticipation and even adaptation. 

The Evolution of the Business Management Expert

A new profile of management controller has emerged. While their missions and responsibilities have not changed much, the profile of the management controller has nonetheless evolved over recent years in line with technological developments and the acceleration of the economy.

The management controller must show innovation : Very often tasked with predicting results and designing solutions to optimize outcomes. They must primarily use their innovative capabilities to find the optimal solution based on budgets, the company's goals, and internal capabilities.

A true manager and link between the different areas of the company: Transversal management has become necessary for the management controller as they must adapt to the company’s internal capabilities and create synergies with other departments. 

At the same time, the management controller must quickly integrate into the company and must understand the evolution of their market and the economic environment of the company they are in. Furthermore, they are expected to communicate with all stakeholders of the company (salespeople, IT specialists, marketing experts, executives, service providers, lawyers, etc…). 

The management controller must expand their skills: Nowadays, management controllers are much more requested to produce extra-financial indicators, as companies are concerned with complying with sustainability-related laws. 

Business intelligence tools also impact the role of the management controller. It is evident that they increasingly develop business analyst skills, in the sense that their job is to add value to numbers and extract information and insights related to the health of the company.

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Thanks to BI tools, the management controller can relieve themselves of tasks that may be perceived as too time-consuming. Thus, they can dedicate more of their time to the analysis phase. 

What Career Advancement Opportunities are There for the Management Controller?

The management controller can start their career as an assistant management controller or even a budget controller. After a few years, they can choose to move into positions of greater responsibility such as financial director or administrative director, or simply decide to change sectors and/or sizes of companies.

The management controller is a sought-after profile by organizations, but the recruitment remains demanding. Moreover, they now cooperate and interact more with other professions within the company.