Smart control

How the effects of cash and cost programs safeguard revenue earnings

Stern Stewart & CO. GmbH
Salvatorplatz 4
80333 Munich

Please choose your language
deutsch français italiano


It is not just since the financial and banking crisis occurred in 2008 that market environments have been changing ever more quickly – the current crisis on the financial and capital markets resulting from high levels of national debt in Europe is once again spilling over into the real economy. Optimism and growth ambitions are increasingly giving way to uncertainty about the economic outlook and associated caution regarding growth and investment intentions. Liquidity and costs are once again becoming focus areas for management.

Management responds to the volatile alternation of crises and upturns with major projects and programs aimed at enhancing flexibility and strength. However, the standard operational line organization of most companies is not prepared for such a rapidly changing environment. The financial results of these programs are therefore not always achieved to the desired extent. Effective program controlling can prevent this from happening. Seven general rules have been identified for establishing effective program controlling and incorporating it into the organization:

1. Define specific and measurable goals for each sub-project

2. Consistently define measures with concrete and measurable steps

3. Measure goal achievement on at least three levels

4. Promote goals

5. Retain knowledge and neutrality

6. Use consistent figures, thanks to program-wide software tool

7. Integrate program controlling into the standard processes

All projects examples