Management SummaryStern Stewart Research // Volume 52

It is not just since the financial and banking crisis of 2008 that market environments have been changing ever more quickly – driven by high levels of public debt in Europe, the crisis of financial and capital markets is once again spilling over into the real economy. Optimism and growth ambitions are increasingly giving way to uncertainty about the economic outlook and the 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 typical line organization of most companies is not prepared for this fast-paced change. The financial results of these programs therefore do not always meet expectations. Effective program controlling can prevent such shortfalls. We have identified seven principles that guide the establishment and firm rooting of effective program controlling within an organization.

1. Define specific and measurable goals for each subproject 2. Develop action plans with tangible, measurable milestones 3. Measure performance vs. targets on at least three levels 4. Set dynamic targets 5. Retain knowledge and ensure neutrality 6. Use consistent data based on a program-wide software tool 7. Integrate program controlling into standard processes



Stern Stewart & Co. is the independent strategy boutique. With a truly entrepreneurial team of independent thinking personalities.
The center of gravity of an open universe of cutting edge know-how. Advising clients in strategy, transaction, performance and

Stefan Heppelmann

Stefan is an independent thinker and senior advisor mostly in transformation/ turnaround situations. Combining deep financial know-how as a CFA charterholder with two decades of consulting experience he often has the one inspirational idea. Discussing key themes of the executive agenda, he shows his entrepreneurial mindset with great personal involvement. Stefan is a true entrepreneur outside the office as well, managing his own agricultural venture in France and supporting Wend Puiré, an apiculture non-profit organization in Burkina Faso.

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Marcus Middelmann

Marcus is all about ambition and commitment. Not only when it comes to golfing or hunting, but even more when an ambitious transformation project is on the agenda. With a long track record of supporting profitability programs and restructuring initiatives he is aware of the associated pitfalls: But his diligence and his high attention to detail often proved to be priceless in critical situations. Shaped by the culture of a family business, he gives much attention to mutual trust and long-lasting relationships.

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