Competence Development in Controlling and Management Accounting

Megatrends such as globalization, digitalization, and social change cause an economic shift and place new demands on the competitiveness of companies. More than ever, controlling is called upon to support management in identifying, developing, and implementing adaptation measures. This requires targeted development of the various competences that controllers must possess. In view of the challenges posed by digitalization and globalization, the competency model presented in the book takes into account two new competence classes (digital and intercultural competence) in addition to the four established competences (professional, methodical, social, and personal). The model distinguishes between different role models of controllers and defines their required competences. The comparison of target and current competences forms the basis for the targeted use of personnel development measures in controlling.

The objectives, tasks, and content of controlling have changed considerably over time: While initially the accounting-oriented view of the past dominated (controller as “bean counter”), over time increasingly future-oriented planning tasks have been added (controller as “pilot”). In the meantime, controlling is not only required to provide management with well-founded support in decision-making (controller as “business partner”), but also to proactively identify the need for change in companies and to accompany corresponding change processes (controller as “change agent”). In the course of the changed tasks, the requirements that controllers have to meet are also changing: Whereas the focus was traditionally on technical and methodical knowledge and skills in connection with the collection, preparation and analysis of figures, communicative skills are now also increasingly required. In addition, there are new requirements placed on controllers by the megatrends of digitalization and globalization. Considering worldwide supply chains and the multinational composition of workforces, dealing with intercultural differences is no longer limited to supranationally active companies. The importance of controllers in corporate management is in danger of being lost as digital functions are taken over by artificial intelligence or business IT specialists. It is therefore necessary for controllers to constantly update their skills.

The term competence is often used in everyday life and also in technical language, and is thereby mistakenly equated with knowledge, skills or qualifications. In the context of personnel development, it is appropriate to understand professional competences as performance dispositions that enable the successful mastering of current and future professional challenges. Competence thus includes not only knowledge and ability but also ingenuity and willingness, i.e. the ability to act and solve problems. The development of employees’ competences against the background of personal and corporate goals is the central object of corporate personnel development. The basis of competence development is the categorization of competences into classes. With regard to competences of controllers, in view of the challenges posed by globalization and digitalization, it makes sense to form two additional classes, intercultural competences and digital competences, in addition to the four common classes of professional, methodical, social and personal competences. The definition of competences is an essential component of so-called competency models, which are intended to achieve systematic competence development in the company in line with operational and personal needs.

The desire of many employees is to systematically advance their own careers. Managers are also interested in developing their employees in a targeted manner within or towards a specific position to optimally meet operational requirements. How can this be achieved, and which method is promising? A customised competency model is the most effective method of developing employees’ competences in line with needs and requirements. This chapter describes in detail the six steps that make up a competency model for controllers.

The requirements for controllers are in a constant state of change, which has accelerated in recent years due to the megatrends of digitalization and internationalization. In order for controllers to be able to fulfil the tasks required of them and ultimately for the job profile of the controller to have a future, it is necessary for the competences of controllers to develop further. The competency model presented in the book represents a systematic personnel development concept differentiated according to task and career levels. It enables controllers to acquire the necessary competences. The focus is on the definition of role profiles, the determination of target competences, the survey of current competences and – in the case of target/actual deviations – the definition of suitable further training measures. In addition to the professional and methodical competences, special attention is paid to intercultural and digital competences, as these play a decisive role in the transformation from “bean counter” to business partner and change agent. By applying the competency model, employees and managers in controlling are shown a career path. In addition, the foundation provided by empirical studies serves as an impetus for the scientific study of competence development in the financial sector.