What do Controllers "Control"?

A consistent downfall I have seen is the idea, defended by many in the organization, that the controller is actually controlling something. Finance defends this idea because it makes them feel powerful. Other management defends this idea because it relieves them of great responsibility.

Certainly, if properly executing his duties, the controller will implement systems that help accomplish much of what his title proclaims. Absent such systems, he is basically left having to sign a check for some agreement made some time ago by some other member of management. I do not intend to go into the appropriate procedural systems, these can be explained by most controllers, even the ones not doing their job.

But to really be in control requires having a management team at all levels that are complete businessman. Every day, employees are making decisions that are binding the company to future payments. These happen whether or not anyone else is looking.

How to create such a management team? Create complete entrepreneurs. Do they understand cash? Do they understand the customer? Do they understand quality? Do they understand how the decisions they are responsible for making every day affect the outcomes for the company?

I go back to some earlier posts:

http://anthem-llc.blogspot.com/2010/04/communicate.html

http://anthem-llc.blogspot.com/2010/03/four-oclock-meeting.html

Communicate, train, teach. This takes the investment of time by the entire team. However look at the payoff. Every manager acts like a complete businessman. They think about the impact of their decisions on cash, quality, and the customer. By the time a document gets to the controller’s desk for approval or payment, most if not all questions have been answered, and the project has already been scrubbed and re-scrubbed to ensure good assumptions driving a good outcome.

With this, the controller’s job becomes much easier. And, he can truly say he is in control.