Post on 24-Mar-2018
www.controllertag.at
Business Partner – Organisation und Kompetenzen
Stefan Schnell, Leiter Corporate Controlling, BASF SE
Achieving more with less – Wirkungsvolles Controlling3. – 4. März 2016, Hilton Vienna
36. Österreichischer Controllertag
Agenda
1 BASF – We create chemistry
2 Business Partnering approach in Controlling
3 Change Management towards Controllers as Business Partners
4 Controlling 4.0 – new requirements on Business Partners
Mar 4, 2016 36. Österreichischer Controllertag 2
Demographic challenges set the stage for the future of the chemical industry
In 2050: More than nine billion people but only one earth
Resources, Environment and Climate
Food and Nutrition Quality of Life
Chemistry as enabler
Mar 4, 2016 36. Österreichischer Controllertag 3
Our purpose
We create chemistry for a sustainable future
Mar 4, 2016 36. Österreichischer Controllertag 4
Platzhalter für Bild
We add value asone company
We innovate to make ourcustomers more successful
We drive sustainablesolutions
We form thebest team
Our strategic principles
Mar 4, 2016 36. Österreichischer Controllertag 5
BASF – We create chemistry
Our chemistry is used in almost all industries
We combine economic success, social responsibility and environmental protection
Sales 2014: €74,326 million
EBIT 2014: €7,626 million
Employees (as of December 31, 2014): 113,292
6 Verbund sites and 353 other production sites
Mar 4, 2016 36. Österreichischer Controllertag 6
Data for 2015 will be published on press conference February 26, 2016.
BASF segments
Crop Protection
PerformanceProducts
Dispersions & PigmentsCare Chemicals
Functional Materials & Solutions
AgriculturalSolutions
Nutrition & HealthPerformance Chemicals
Oil & Gas
Oil & Gas
Chemicals
Monomers
Intermediates
Petrochemicals
Functional Materials & Solutions
ConstructionChemicals
Coatings
Catalysts
Performance Materials
Mar 4, 2016 36. Österreichischer Controllertag 7
Organization of BASF Group
Combined into five segments,13 divisions bear operational responsibility and manage the global and regional business units
The operating divisions develop strategies for the different strategic business units
Regional divisions contribute to the local development of the business, help to exploit market potential and are responsible for optimizing the infrastructure for our business
Three central divisions, six corporate units and ten competence centers provide services for the BASF Group such as finance, investor relations, communications, human resources, research, engineering, site management or environment, health and safety
Mar 4, 2016 36. Österreichischer Controllertag 8
BASF worldwideSites
Regional centers
Selected production sites
Verbund sites
Selectedresearch sites
6 Verbund sites and 376 other production sites BASF companies in more than 80 countries BASF supplies products in nearly every part of the world
Mar 4, 2016 36. Österreichischer Controllertag 9
Agenda
1 BASF - We create chemistry strategy
2 Business Partnering approach in Controlling
3 Change Management towards Controllers as Business Partners
4 Controlling 4.0 – new requirements on Business Partners
Mar 4, 2016 36. Österreichischer Controllertag 10
Controlling in BASFMain tasks
Planning & Performance Mgmt. Strategic Planning Operational Planning Forecasting Reporting & Communication Target Setting
Interface Management Systems & Tools Organizational Interface Management Group wide Projects & Initiatives Training/Education/Support
Business Analysis Business Consulting & Analysis &
Recommendations Strategy Definition & Projects
Governance & Compliance Policies & Procedures Internal Control Effectiveness Audits
Mar 4, 2016 36. Österreichischer Controllertag 11
The global Controlling organization
Decentralized Controlling UnitsCentralized Controlling Units
Strategic Planning & Controlling
Competence Center
VerbundSite
Competence CenterControlling
Operating DivisionControlling
Verbund Site Controlling
CompanyControlling
RegionalControlling
Corporate Controlling
Business Center/ Company
Business UnitControlling
Regional Division
Operating Division
Business Unit
CEO CFO
Mar 4, 2016 36. Österreichischer Controllertag 12
Controllers’ communication platforms
Global Controller Meeting & Workshop (2-3 times per year)
OD ControllerJour fixes(monthly)
Controlling ExpertGroup
(every two months)
European BU Controller Meeting (3 times per year)
Regional / Functional ControllerJour fixes
(every 2 months)
Global Controller Conference
(every 2 years)
Corporate Controlling
Systematic communication platforms are a key to our successMar 4, 2016 36. Österreichischer Controllertag 13
Business Partnering maturity evaluationin 2009 and 2013
Mar 4, 2016 36. Österreichischer Controllertag 14
55%
Controlling
45%
11%Asia Pacific
South America6%
29%
North AmericaEurope
54%
Business
Support of CTcon, management consultants
Interviews and questionnaireswith Business + Controlling representativesacross Divisions, Regions and Functions
Year 2013: follow-up to 2009 survey with increased scope
Three areas of assessment of BASF Controlling:- Controlling in general- Controlling Business Partnering roles + skills- Controlling Community & HR measures
Improvement ideas were identified in each area of assessment
Year 2013
4%
21%
34%
56%
47%
48%
4%
3%
6%
69%
19%
24%
58%
4%
31%
22%
56%
31%
65%
4%
3%
14%
53%
18%
38%
65%
Other
Navigator
Policeman
Partner
Administrator
Internal consultant
Architect
Innovator
Change agent
Number cruncher
Sniffer dog
Communicator
Economic conscience
Controller Business Partner Controllers' self perceptiongenerally close tobusiness assessment
Strong development inpartner, internal consultantand navigator roles(double-digit growth vs. 2009)
Trend in line with expectedfuture Controlling roles
Maturity evaluation: favorable development of Business Partnering roles
Mar 4, 2016 36. Österreichischer Controllertag 15
“Number cruncher” still prominent role from business’ perspective
Year 2013
Scaleaverage
Very high
Personal requirements Interactive skills Commercial attitude
Maturity evaluation: Controllers' Business Partnering skills on good level
Good level of satisfaction with current status, close to target Generally target picture confirmed, high degree of importance for skills Similar assessment of Controlling & business regarding importance & current status Improvement potential especially regarding Forward looking & external awareness,
Constructive challenging, Business acumen & responsibility and Initiate and drive changeMar 4, 2016 36. Österreichischer Controllertag 16
Maturity evaluation: strengths and development opportunities
High satisfaction with Controllingsupport
Favorable development of Business Partnering related Controlling roles
Controllers' Business Partneringskills on good level
Strong Controlling Community
Controllers' role perception and fulfillment
Optimization of Controllingactivities and processes
HR-related measures
Strengths Development opportunities
Mar 4, 2016 36. Österreichischer Controllertag 17
Development opportunities and follow-up measures were defined
Agenda
1 BASF - We create chemistry strategy
2 Business Partnering approach in Controlling
3 Change Management towards Controllers as Business Partners
4 Controlling 4.0 – new requirements on Business Partners
Mar 4, 2016 36. Österreichischer Controllertag 18
Controlling in BASF?
Mar 4, 2016 36. Österreichischer Controllertag 19
From bean counter or number cruncher of former days to…
…sharing and driving the business vision
Mar 4, 2016 36. Österreichischer Controllertag 20
Change in mind-set
Mar 4, 2016 36. Österreichischer Controllertag 21
From the vision to concrete examples…
BASF Controller Mission
As a part of the management team, we proactively…
…enforce compliance with group reporting procedures.
…foster dialogue and cross-functional comprehensive understanding within the organisation.
…guide, challenge and consult the organisation towards economical decision-makingand value generation.
… secure management understanding of the economic situation of BASF
Mar 4, 2016 36. Österreichischer Controllertag 22
Business Partnering in BASF Controlling
…work jointly & proactively with businessas a trusted partner & challenger
…masterfunctional & methodical
Controlling skills
…take responsibility forbusiness performance &
strategic alignmentAs
Business
Partners @
BASF Controlling, we…
Mar 4, 2016 36. Österreichischer Controllertag 23
Business Partnering: the way to fulfill the BASF Controller Mission
To be a true Business Partner…
Value oriented mindset Forward looking & external awareness Business acumen & responsibility Initiate & drive change
Commercial attitude
"Controllers help you to reach a higher level"
Analytical excellence Integrity & objectivity Standing & backbone Reflection & learning
"Controllers help you to manage complexity"
Personal requirements
Concise communication Constructive challenging Ability to convince Trusted relationship
Interactive skills
"Controllers help you to make the big points"
Mar 4, 2016 36. Österreichischer Controllertag 24
1st
Controllers’ Excellence
Award
Business Partnering developmentOverview of modules 2009 - 2016
1st
Controlling Leadership
Program
1st
Business Partnering Seminar
1st
Controlling Talent Program
1st
Controllers' Quarterly
2015
Global roll-out of
Business Partnering @ BASF
Controlling
2009 2011 2012
1st
Business Partnering
Award
2013 2014
Bus
ines
s Pa
rtne
ring
Mat
urity
Eva
luat
ion
Controllers' Mentoring Program
Living Business
Partnering Toolbox
2016
Mar 4, 2016 36. Österreichischer Controllertag 25
Controllers’ QuarterlyThe newsletter for our global community
Provide a platform which informson current projects and initiatives
Give the opportunity to presentideas and best practice approaches
Update on HR development
Bring the global Controlling Community closer together
„Communication
as a key toour success“
Mar 4, 2016 36. Österreichischer Controllertag 26
All Controllers and other interested BASF colleagues can register
Controllers’ Excellence Award 2016Targets & evaluation criteriaTargets:
Contribute to achieving BASF’s economic goals
Continuously drive Business Partnering in BASF Controlling
Support the development towards Controlling 4.0
Encourage technology trends in industry
Continue in being “world class” (Hackett)
Sharing best practices inside the Controlling Community
Honor best approach with rewards
Evaluation criteria: Innovative ideas to increase effectiveness and efficiency Already implemented Controlling excellence approaches
Impact on Business Partnering in the respective unit
Feasibility and transferability to other units
Economic benefit / value added for BASF High performance team approach
Mar 4, 2016 36. Österreichischer Controllertag 27
Share best practices globally and honor best approaches
Business Partnering Toolbox
Mar 4, 2016 36. Österreichischer Controllertag 28
Controllers’ Business Partnering Toolbox expansion in 2015
Business Partnering PyramidPhysical tool for self-reflection
Integrated
Individual
Tangible
Sself-rewarding
Mar 4, 2016 36. Österreichischer Controllertag 29
Continuous improvement on Business Partnering skills
• Identify stakeholders• Individually locate
stakeholders based on frequency and level of integration
• Define the relationship with your stakeholders
• Identify improvement needs
• Evaluate BP actions to improve the integration into business decisions
Seek for integration
Freq
uenc
y of
coo
pera
tion
Level of integration
ManagementTeam
MarketingSales team
Production
Operations/Supply Chain
OD Controlling
Evaluation of relationship
Controllers’ Stakeholder Matrix
Mar 4, 2016 36. Österreichischer Controllertag 30
Identify Controlling stakeholders and understand their needs
Talent development in Controlling
Recruiting
Onboarding
TrainingPersonnel Development
• Trainee Program• Key university concept• Graduate marketing• Retention program
• Global Welcome Webcast
• Introduction Package• BASF Campus
seminar• Newsletters
• Business Partnering• Finance &
Controlling Academy
• Global Talent Review• Global Personnel Ticker• Development Patterns• Talent Program• Leadership Program
Comprehensive approach to support talent developmentMar 4, 2016 36. Österreichischer Controllertag 31
Controlling talent management is executed at corporate level
In order to achieve transparency on talents, a Controlling talent pool has been implemented. Controlling talents have the potential to qualify for a key positionand/or become part of the pool of executive candidates.
Controlling talents
3.62.1
DevelopingReady
Inexecutivepositions
Developing
In keypositions
Ready
All Controlling employees
Executive candidates
Mar 4, 2016 36. Österreichischer Controllertag 32
Controlling FinanceBusiness: Marketing, Sales, SCM, ...
GeneralManagement
Ste
ps w
ithin
dev
elop
men
t pat
tern Getting Controlling
know-how as preparation for career development intogeneral management
Career development in Controlling also enables a business career
Deepening Controlling knowledge to supporta functional career (e.g. finance)
Focusing at Controllingcareer development by taking various positions in Controlling functions
Various development patterns possible and desired
Talent development in ControllingDevelopment patterns
Mar 4, 2016 36. Österreichischer Controllertag 33
Controlling Community Mentoring Program
Enriching the Controlling Community with a relation-based personnel development instrumentObjectiveObjective
Controlling employee w/o leadership responsibility driving own development
Level 5 Controller with minimum 3 years leadership experienceMentee Mentor
Scope
Matching
Scope: Cross-unit exchange within the
Controlling Community Optional: cross-regional / cross-
cultural
Matching: Questionnaire covering
preferences based on individual development needs
Validated by Controlling Senior Management
12 m
onth
s
Mar 4, 2016 36. Österreichischer Controllertag 34
First year of mentoring program successfully conducted
Finance & Controlling Academy
Mar 4, 2016 36. Österreichischer Controllertag 35
BASF's Finance and Controlling function is World-Class
"The Hackett Group" has given the Finance and Controlling processes the highest efficiencyand effectiveness rating
BASF is the only European company, which has been rated “world-class” three times in a row
Hackett Value Grid™
High
World-Class
Effe
ctiv
enes
s
High
EfficiencyLow
1Q
1Q
BASF 2010
BASF 2005
BASF 2006
BASF 2007
BASF 2013
Other Companies
Hackett BenchmarkBASF Controlling & Finance World-Class
Mar 4, 2016 36. Österreichischer Controllertag 36
Agenda
1 BASF - We create chemistry strategy
2 Business Partnering approach in Controlling
3 Change Management towards Controllers as Business Partners
4 Controlling 4.0 – new requirements on Business Partners
Mar 4, 2016 36. Österreichischer Controllertag 37
We add value asone company
We innovate to make ourcustomers more successful
We drive sustainablesolutions
We form thebest team
Shared Controlling Services & Reporting Excellence at BASF
Efficiency hikes via harmonization, automation and bundling
One common reporting language, less complexity without added value
Focus on Business Partnering
Bundling ensures high data quality
Further professionalization in reporting activities, enhanced knowledge management
Take advantage of industry best practices
Mar 4, 2016 36. Österreichischer Controllertag 38
Bundling of Controlling tasks:Controlling Services support Business
Quality Bundling of report generation steps ensures consistency and data quality Better practice reporting solutions at BASF spread across units
Efficiency Efficiency gains will be achieved through economies of scale and scope
Business Partnering
Controllers remain main contact for business and management Increased focus on Business Partnering Controllers start from a provided reporting basis (no initial production)
Business reporting
Shared Service Ctr.Controlling
Business Partnering
Business
Future set-up
Controlling Services
Mar 4, 2016 36. Österreichischer Controllertag 39
Quality of reporting will be enhanced and efficiency will be raised
Big Data & Analytics in Controlling
“During the last 2 years more data has been created then in the last 2014 years”
“BASF has created 9,5 Peta Byte but we are only using 10% actively”
Big Data is said to have five dimensions: volume, velocity, variety, veracity & value
Big Data requires new approaches (technology, tools & architectures and methods) to solve new and old problems in a better way
Mar 4, 2016 36. Österreichischer Controllertag 40
Leverage technology for better Controlling and Business Partnering
Controllers’ role and organization are changing, as will do employee profiles
Source: Horvárth & Partners
Mar 4, 2016 36. Österreichischer Controllertag 41
…but to the better, and towards more Business Partnering
Change in the role of Controllers: Share of machine decisions
Source: Horvárth & Partners
Mar 4, 2016 36. Österreichischer Controllertag 42
Significant changes to the role of Controllers are yet to come…
Achievements 2015Direction defined
Milestones 2020Controlling 4.0 in place
Milestones 2025Controlling driving agility
Active Change Management Target Picture “Controlling 2025” in BASF
Mar 4, 2016 36. Österreichischer Controllertag 43
Implementation of "Reporting & Analytics Strategy“ and "Future Consolidation" initiated
Operational Planning and SBU strategies aligned
Market oriented business steeringand target setting enabled
Business Partnering establishedin Controlling
Controlling Services set up Comprehensive personnel
development in Controlling Community in place
“Big Data” usage rolled-out and change management in full swing
Users excited about fully inte-grated cross-functional reporting and business analysis
Operational and market view consolidation combined
Target setting supported by driver based scenario planning
Controlling Community collabora-ting across well defined roles inbusiness, governance and services
Effective cross-functional personnel development implemented
Use of “Big Data" technology and concepts is standard in Controlling
Driver based planning and forecasting based on predictive analytics
Controlling Community pushingfor permanent innovation,driving speed and maximizing value impact for BASF Group
All career development patternsin different Controlling roleshighly recognized