UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
Ak szczeczin 1109 one page only-eng
1. ICV work group Szczecin 2011-09-09
One page only –
Reports for decision makers
.
this way
.
Controllerverein.com
Internationaler Controller Verein eV | Herwig Friedag | 2011 | Seite 1
2. ICV work group Szczecin 2011-09-09
One page only –
Reports for decision makers
.
or that way ?
Controllerverein.com
Internationaler Controller Verein eV | Herwig Friedag | 2011 | Seite 2
3. „What’s not to summerize
on only one page,
is neither well thought off or
well prepared for decisions."
___________________
Dwight D. Eisenhower
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4. Herwig R. Friedag
Born in1950, Dipl. Volkswirt, Dr. rer.pol.
Independent consultant focusing on:
Implementation of Balanced Scorecard in
companies
Workshops on Balanced Scorecard
Internationaler Controller Verein eV
head of the PR committee at ICV
Visiting lecturer at Humboldt University in Berlin and
Danube University Krems (A)
Dr. Herwig R. Friedag
Friedag Consult
Hobbies: discovering the New, travels, Beskidenstr. 33, D 14129 Berlin
Fon +49 30 80 40 40 00
bicycle tours, enjoying the nature, Fax +49 30 80 40 40 01
volleyball, sailing consult @ friedag.com
www.friedag.com
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6. 01 Ideas for good reporting
Report’s tasks
Sense and aim of reporting is:
o creating transparency,
o generating management-relevant data
o preparing and providing every user
with management-relevant data
to make a goal-oriented decision within the company management
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7. 01 Ideas for good reporting
Sense of reporting
Reporting should be oriented on data requirements of every single
report’s recipient .
A compact, understandable and meaningful reporting system is here
a condition for acceptance and application on all recipients.
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8. 01 Ideas for good reporting
Frequency of a report
Depending on time period, reports can be prepared e.g.
daily, weekly, monthly, quarterly or annually.
They list the current data and vizualize and comment
the differences from earlier periods / plans.
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9. 01 Ideas for good reporting
Report’s content
In particular for controller, the reporting is an important tool for
planing and coordination, because the numbers and analysis of the
past influence significantly the decisons about the future.
Therefore the transparency regarding finances is crucial for the
results and the strategy process.
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10. 01 Ideas for good reporting
Report’s costs
Besides: each report costs money: costs of
- obtaining data,
- data processing and
- time for reading / understanding
Ask more often: How much does this report cost?
Is it worth it?
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11. 01 Ideas for good reporting
Reporting requirements
No more than 7 information units for the recipient
Why7 ?
The reason could be the importance of seven in people perception.
It origins from the field of cognitive psychology. Seven is called
Miller’s magical number seven.
Already more than three hundred years ago John Locke
discovered so called „seven phenomena“ when he studied
inteligence of an adult. He claimed that the test people (seeing
many object for a short moment) have the score of almost one
hundred percent, if the number of objects is lower than seven. By
more than seven objects is the score much lower.4)
4) Z. Giora: The Magical Number Seven. In: D. Robert (Hrsg.): Occident and Orient-
Budapest 1988. S. 175 ff.
from: http://de.wikipedia.org/wiki/Sieben
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12. 01 Ideas for good reporting
Reporting requirements
Our short-time memory
Why7 ?
The Miller’s magical number seven describes the fact discovered by
George A. Miller: one person can simultaneously keep only 7±2 information
units (Chunks) in mind for a short time. The size of short-time memory is
determined genetically and cannot be improved by „training”. 1)
1) http://de.wikipedia.org/wiki/Millersche_Zahl
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13. 01 Ideas for good reporting
Reporting requirements
Quantities clear for people
functioning in practice 1)
Methods to handle with complex systems (see Fredmund Malik,
requirements management, software engineering) aim in breaking the
data into transparent units. The border of transparency is reached by
seven system elements.
Therefore different effects and recommendations can be explained:
Hierarchies are ineffective, when more than 7 co workers in the same
field have one superior.
When you pursue more than 7 goals simultaneously, you can loose the
overview.
Discussions with more than 7 participants are not so effective.
The structure of a document should not have more than 7 sub-headings.
A website should have maximal 7 menu items.
1) http://de.wikipedia.org/wiki/Millersche_Zahl
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14. 01 Ideas for good reporting
Reporting requirements
No more than 7 information units for the recipient
An information unit can also consist of information pairs
(e.g. strategic – operative, Input - Output)
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15. 01 Ideas for good reporting
Reporting coherence
How should the information units work? (coherence = consistency)
Reports must be
a) understandable,
b) manageable and
c) important
Provide only data, which are also
a) understandable for the recipient,
b) for which he’s responsible and
c) where he is capable of making decisions.
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16. 01 Ideas for good reporting
Exercise: Reporting coherence
Indicators / Reports must be consistent
(= understandable, manageable and important)
How can you recognize it?
Set of examples:
a) understandable, - not understandable
b) manageable - not manageable and
c) important - not important
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17. 01 Ideas for good reporting
Conclusion
Not too high complexity of data to get definite and clear results.
Requirements of the user:
short and understandable: 7
always clear database
good communication basis thanks to clear
massages
(What should the site/ graphic reveal?)
quick analysis and decision time
Controllers’ responsibility:
He makes an initial selection of data included in the report.
He must check on the basis of his behaviour if the recipient has received / did
understand the massage .
He must dig deeper if it’s needed (Deyhle: „liebenswürdige Penetranz“)
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19. 02 Customer’s data requirements
Who is the controller’s customer?
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20. 02 Customer’s data requirements
Manager und Controller
Controller:
Controlling
Manager:
responsible for
responsible for
business results,
business results,
finance,
finance,
processes and
processes and
strategy
strategy
transparency
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21. 02 Customer’s data requirements
Who’s the customer?
For every report it should be cleared, which recipient which
reports and data - when and really regular ? - needs and in
which aggregation the data should be provided.
The controller must know which decisions the recipient can make
on the basis of his reports
Perception of his responsibility
Being manager’s partner
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22. 02 Customer’s data requirements
What wants, what „should” know the customer?
Which decisions are part of his responsibility?
transparent responsibilities
What is needed periodically (monthly, quarterly)?
not more than 7 parameters (or their pairs)
Parameters cost money
what is the customer able to pay?
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23. 02 Customer’s data requirements
Planning und data requirements
Reports are not common statements –
that’s why it must be established with the
responsible manager before:
a plan (budget) with numbers
range for the goals
frequency of the statements as a basis for
decisions
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24. 02 Customer’s data requirements
What data is important?
Strategic, operative and dispositive data – according to the
business model:
Strategic = develop: what potentials do we want to establish?
Operative = use: what do we want to achieve?
Dispositive = apply: what is the time order of potentials?
necessary available
potentials need for potentials
development
strategic
develop
operativ dispositive
use apply
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25. 02 Customer’s data requirements
Exkurs: What is strategic, what is operative ?
long-term ? short-term ?
spending money
do nothing? strategic operative do?
develop potentials exploit
possibilities
marketing + orders / contract
develop capacities skills use capacities
quality potential quality assurance
staff competence staff development
investor relations liquidity
Partnership partner’s disposition
potential inflow cash inflow
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26. 02 Customer’s data requirements
What data is important?
Strategic and operativ, optionally also dispositive data –
according to the business modell
Problem:
which goals could not be achieved / were even exceeded and why?
What measures will be taken - by whom responsible and until when
– to solve the problems?
Where is there need for decisions?
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27. 02 Customer’s data requirements
What data is important for a single manager?
It depends on the resposibility of the manager
What is important for the manager, must be talked over with him
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28. 02 Customer’s data requirements
Exercise: a reasonable column layout
Month reporting:
plan
actual
differences absolutely or
differences %
plan end of the year
forecast the end of the year
differences absolutely or
differences %
… and everything on one page? What can we reduce?
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29. 02 Customer’s data requirements
What results from all this for controlling?
For every responsible manager usually only one report –
only one page with max. 7 information units (or their pairs)
Further analysis for demand
A report contains one page if possible
planned- and actual figures (as numbers or graphics)
Hints for deflections
Means to achieve the goal
need for decisions
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37. 04 Graphics or numbers?
Graphics or numbers
It is essential for reporting to provide homogeneous and binding
terminology: the same terms are important also when they appear
in different places. Different terms should be designated on a
different way.
Creating a homogeneous companies glossary is an important task
for a controller.
E.g. Hichert shows, how graphics should be constructed.
http://www.hichert.com
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38. 04 Graphics or numbers?
Graphics or numbers
Quelle: http://www.op-inside.de/page31/page6/assets/OP-Cockpit.swf
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39. 04 Graphics or numbers?
Graphics or numbers
source: http://www.hichert.com/downloads/consulting/schaubilder/044_798.pdf
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40. 04 Graphics or numbers?
Graphics or numbers
Source: http://www.hichert.com/de/consulting/schaubilder/310
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41. 04 Graphics or numbers?
What is better for whom?
…
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42. 04 Graphics or numbers?
More information:
http://isc.hs-heilbronn.de/Tools_Excel/ICV/ICV_15/opo_tool.pdf
http://www.hichert.com
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43. Practical group work
Exercise: choosing a target customer - game
(employee / company)
company data
area of responsiblity
personality profile
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