Controlling in Spain and what companies should consider if they want to improve
Ulrich Müller Bosom
• Fourth largest country in Europe after Russia, Ukraine and France.
• Joined in 1986 the EU and steady economic growth.
• The bursting of the spanish property bubble in 2008 led to the spanish financial crisis till today.
Year 2006 vs 2011
Unemployment rate stood at 7,6%
The country's economy created more than half of all the new jobs in the European Union
Spanish economy regarded as one of the most dynamic within the EU, attracting significant amounts of foreign investment
Unemployment rate grow over 20%
Spain faces its deepest recession in half a century
GDP development
ButSpanish tourism industry has grown to become the second biggest in the world, makes it to one of Spain's main national industries and a large source of stable employment and development.
Spain is one of the world's leading countries in the development and production of renewable energy. It became the solar power world leader. Spain is also Europe's main producer of wind energy.
Spain has the most extensive high-speed rail network in Europe, and the second most extensive in the world after China.
3 choices
Past: more or less no Controlling
Accounting as the only information tool
Development to “Control de Gestión”
Mainly in bigger companies
More or less no training in Controlling
Low level of cost understanding
No strategic orientation in the organization
No transparency
Evolution of the cost accounting at Miguel Torres, S.A.
Direct cost
Total cost ABC costing (1975 to 1983) (1984 to 1993) (1993 till today)
order management, invoicing, collecting payments, … pressing, bottling, breeding,
pressing, bottling, breeding,
grape, bottle, lable, direct labor cost grape, bottle, lable, direct labor cost grape, bottle, lable, direct labor cost
Present: Controlling is all
No clear definition about Controlling
Financial Controller mainly developed
Also increase of strategic view with BSC
Being a Controller in Spain
Focus on cost reduction
The Controller as an auditor
With the ICV Spain good opportunity to improve the understanding of Controlling
Controlling positions mentioned by Michael Page in his compensation study 2012
Controlling Director
Finance Controller
Head of Reporting / Head of Consolidation
Sales Controller / Industrial Controller / Credit Controller
Increased demand of International Controller (three languages, able to adapt and understand different cultures, knowledge of international accounting like IFRS, USGAAP, able to deliver relevant info of the business and agility to detect changes in market trends, SAP knowledge).
Also demand of Controller with a benchmarking view.
Future: How to become a business partner
Extend of the ICV Controlling philosophy
More focus on the strategy
From the cost crunch to the sales increase/portfolio optimization
The controller as a key figure (business partner) to minimize the impact of the crisis in the organizations
Analysing the past, managing the present and anticipating to improving the future
Extend it also to smaller companies
