My problem with Financial and Business Control
Why we need a change of perspective.
Hi! My name is Koen Lagae and I’m excited for my first post to Medium.
I’m a management consultant in lean strategy, performance improvement and financial control. My intention is to share concrete ideas that will inspire you to adapt new concepts for long term growth in your business!
My past experience as Controller and CFO have made me understand the benefits of a traditional controlling environment, but also its limits.
I have been a strong advocate of adopting state of the art controlling and reporting schemes. I have worked, among others, on profit and loss variance analysis, management reports for all critical processes and sophisticated forecasting models. All the schemes were constructed using the best software tools on the market.
I believed my activity to be very important because it made management understand actual company performance, compared to the budget or last year results. Proudly I used to present the numbers in the monthly management meeting, highlighting the evolution of the different key performance indicators. As a result we successfully took decisions to improve results in some areas that were clearly underperforming.
However in some more complex cases it was not always possible to define countermeasures and to improve and maintain results. For this I blamed the limited functional vision of some managers and the lack to view the entire process. Surely my numbers and analytical details were self explaining and required only the necessary action! But I was wrong…
Later I would understand that the next step forward on the performance improvement ladder required a complete shift of perspective on what it takes to makes things happen in a company.
Over the next weeks I will be talking about different topics that can inspire you to make fundamental changes. How we can create a system that truly guides the company on the road to improvements. Concrete ideas that have been well documented in management literature. But often not yet a practice in a lot of companies.
Thanks for reading. I hope that you enjoy!