Who plans, wins... E-Book

Günther Pichler

• Herausgeber: Haufe Lexware
• Kategorie: Fachliteratur
• Serie: Haufe Fachbuch
• Sprache: Englisch
• Veröffentlichungsjahr: 2024

Beschreibung

Executives want to increase their knowledge and read the maximum amount of books possible. Unfortunately, reading is time-consuming, and many people lack the excess time to do so. Due to this lack of time, only 30% of most books will be read. Speed reading workshops teach people how to find the significant information in the text whileskipping over the unnecessary "fluff".The author describes himself as a hands-agmatist. So this book attempts to avoid all "fluff" and only provide readers with useful information.Content:- Systematic strategy development- Sales and revenue planning- Internal cost allocation- Reporting options

Leseprobe

Contents

Contents

Copyright

Foreword

1 Hidden inefficiencies

2 The Greko method

2.1 Current situation in companies

2.2 The basis of the Greko method

2.3 Why do we want to do this to ourselves?

2.4 Advantages of the Greko method

2.5 "Unproductive, but not lazy!"

3 Systematic strategy development

3.1 Business management support for strategy development

3.2 Strategy implementation at the process and structural level

3.3 How do you generate innovation?

4 The 8 steps of the Greko method

4.1 Step 1: Sales and revenue planning

4.1.1 Key figures for sales optimisation

4.1.2 The advantages for you

4.2 Step 2: Composition of the structural data

4.2.1 Do you think your accounts are accurate?

4.2.2 Tailored controlling

4.2.3 The advantages for you

4.3 Step 3: Price label planning

4.3.1 Determination of cost rates

4.3.2 How does process cost accounting work?

4.3.3 Retrograde calculations

4.3.4 What are the benefits of process cost accounting?

4.3.5 The advantages for you

4.4 Step 4: Internal cost allocation

4.4.1 Cost centres that do work for other cost centres

4.4.2 The advantages for you

4.5 Step 5: Structure of the costing

4.5.1 The payment factor

4.5.2 The advantages for you

4.6 Step 6: Coordination and plausibility check of planning

4.6.1 Customer benefit analysis

4.6.2 Plausibility check of planning

4.6.3 The advantages for you

4.7 Step 7: Actual accounting

4.7.1 IT is essential

4.7.2 The advantages for you

4.8 Step 8: Analyses & evaluations

4.8.1 Analysis procedure

4.8.2 Reporting for Glasses Factory Ltd

5 The addressee - psychology

6 Reporting options

6.1 MAR Management accounting result

6.2 Projection “shaping the future”

6.3 Information according to Hichert

6.4 Cost objects/projects/orders

6.5 CoRa - Cost rates

6.6 Cost centres

6.7 Cost categories

7 Good managers

8 Finally, a note on financial planning

9 Afterword/purpose

Book recommendations

About us

Abbreviations

Index

Figures

German National Library bibliographic information

The German National Library lists this publication in the German National Bibliography; detailed bibliographic data can be found online at http://dnb.dnb.de.

ISBN print:        978-3-648-13508-2

ISBN e-book:    978-3-648-13509-9

Guenther Pichler

Who plans, wins …

Cover: Gerald Plattner

Translator: tolingo.de/Hamburg

Illustrations: Guenther Pichler

© 2020 Haufe-Lexware GmbH & Co. KG, Freiburg

www.haufe.de

[email protected]

This work, including all its parts, is protected by copyright. Any use outside the strict limits of copyright law is prohibited without the consent of the author. This applies, in particular, to electronic or other reproduction, translation, distribution and making available to the public.

Foreword

Dear readers1,

I am thrilled that you have chosen to read my book

Who plans, wins ...

In this book, I guide you through the world of goal-oriented business leadership and management. Read this book to find out how to achieve greater efficiency and decision-making reliability in the future thanks to the combination of holistic business management and the “activitybased costing method.

The method is an insurance policy for managers since the right decisions can be made on the basis of organisational development, which is carried out when the structures are put into place. Cost transparency in connection with services reassures employees and motivates them. From a business management point of view, this is a “must-have” for pricing, preliminary and final costing and permanent profitability investigations. And for monitoring improvements, i.e. CIP (Continuous Improvement Processes).

Pay particular attention to the standardisation of recurring processes, which is clarified in this thorough analysis, and gain more time for innovation, which can also be achieved thanks to motivated employees. This is because the secret of successful companies is always in the level of enthusiasm of the staff. This relates to all stakeholders. I regret having consulted for companies where employees had to find out that the company had gone bankrupt from the newspapers!

Methods such as the activity-based costing method give communication a huge boost at a completely new objective level. Well-managed companies challenge and support their employees. They give employees the space and direction that people need in order to be able to develop independent self-control.

Share the valuable information from the activity-based costing method with your employees. This results in an enormous rethink in terms of cost responsibility. Top management cuts costs in certain areas without specifying exactly how and where these costs are to be cut. This requires discussions with the departments and the departments themselves need to have an understanding of their costs: the Greko method is useful here!

The major advantage of the business leadership and management philosophy according to the activity-based costing method is that the organisation gains a dynamic which steers the employees in a positive direction.

I hope you enjoy reading this book.

Do you have any questions, requests or suggestions?I look forward to hearing from you!

Guenther Pichler

Mobile: [phone]Email: [email protected]: www.greko.at

1

In order to make the text easier to read, some of the terms, which are used, are worded in a gender-specific manner. However, we do, of course, intend to address both men and women.

1 Hidden inefficiencies

I would like to start by telling you about a very special example from my consulting career. This example tells us why analytical business planning is so important.

The following happened to me during a joint budgeting session with a client a few years ago: when analysing the cost types, we usually work according to the Pareto principle, i.e. 80:20. This means that if we have

100 cost types then 20 of these cost types account for 80% of the costs. For one client, the cost type of “water” was in 18th place. The company's controller had decided not to do anything about the cost type of “water”. He presented the past five balance sheets with the same amounts for water costs. In the context of our analysis, the question arose: “Not where, but what did the company need the water for?”

In the course of the analytical planning, we found out that the water cools the machines down. After in-depth research, we were able to establish that, at maximum load and operating performance of the machines, the required water consumption amounted to about half 50% the cost type of “water”.

And then the investigation for the second half of the water consumption began. Within the company we analysed, for example, water used for cleaning, coffee, washing hands, showers in changing rooms etc.

The analytical search for the second half of the water was not very successful. Therefore, we decided to read the water meter on a Friday after work and then again on Monday morning. It turned out that the meter had been continuing to run even though all the machines were switched off at the weekend. Had someone secretly been stealing the water there?

No, no water had been stolen. The main line had a leak after the meter! So, the water had been dripping out of the tap and seeping away without being used for years!

Over a long period of time, money had been wasted twice unnecessarily because the water costs per cubic metre amount to approx. EUR 1 and the waste water fee is also estimated to be EUR 2 per cubic metre. The company therefore tried to negotiate successfully with the water company or waste water organisation, at least about the waste water fees.

My profile: Thanks to this type of overhead cost planning, I have already been able to show lots of clients cost types which have been wasting huge sums of money year after year.

After all, are you sure that the electricity for the neighbouring building is not going on your electricity meter?

2 The Greko method

2.1 Current situation in companies

The relationship between growth, profitability, security and full employment has become confused in lots of industries, markets and companies. To make sure that no one misses out on the message: “the times are getting harder” and “the competition is getting tougher”. Those who blame others for their own problems, however, remain unaware that they lose time and money with each decision that they postpone. This means that you have to learn to be better than the competition and not try to blame the “bad times”.

Which factors cause problems with the smooth day-to-day operation of a company?

More demanding customers

Inaccurately defined tasks

Lack of clear communication

Incorrect information

Rising costs

Lack of transparency

Unmotivated employees

Each organisation has individual requirements in terms of the product/market combination. Therefore, managers are required to make the information available to their teams as a service. A customeroriented catalogue of services with allocation prices should be created here. The focus is on the customer and the team. Everything else needs to be reconsidered!

Transformation means simply rethinking how the organisation will work in the future.

Decentralised network organisations require services such as rules, information and therefore transparency and design. Every company has a certain degree of maturity with regard to the business model, the organisational structure & process organisation, the business processes, the product life cycle, the culture and learning and knowledge transfer in order to generate and implement innovation.

Of course, most companies have a cost accounting system, or at least that is what the managers think. Usually this is a cost collection assigned to rough cost centres and the remaining costs are simply allocated at the end. There is no business statement about the costs associated with cost centres and, of course, no preliminary or final costing of cost objects. Managers do not comply with their duty of care to establish and operate an Internal Control System (ICS)!

Requirements

The dilemma starts because the true costs are unknown. More transparency and more efficiency are required. Believe me, if you had the real costs of your products and services at your fingertips, the decisions you make would often be different.

The following measures are therefore necessary:

Checking the costing, the customer benefit, the product/market combination

Finding talent for implementing the objectives that have been set within your company

Concentration on core business competencies

Improve value chains in a

measurable way

Teams independently develop objectives and improvements

2.2 The basis of the Greko method

Every business person and every manager spend hours a day worrying about inadequate business processes and targets that have not been achieved. This is often a result of today’s business world, which is becoming increasingly confusing. The Greko method has been developed over many years with the aim of mastering this increasing