1. The theory and practice of
Russia
in conditions of crisis
In Kaliningrad (Russia) on 22–23 May 2009, the
2nd International scientific-practical conference on
problems of controlling in conditions of crisis took
place. The conference was organized by the Kali-
ningrad Club of Administrative and Financial Con-
trollers with the assistance of the Kaliningrad Inter-
national Business School, Russian Association of
Business Education and International Controller
Association ICV. There were about 60 representa-
tives of Russian companies from Kaliningrad,
Moscow, St. Petersburg, Kazan and Kaluga, and
the ICV representatives from Germany, Lithuania,
Estonia, Poland and Russia were engaged as the • Uncertainty of key manager responsibility zones
speakers. • Absence of constant inner corporative training
processes
Herwig R. Friedag (Germany) opened the confe- • Absence of correlation between motivation
rence with the volumetric report on system ma- system and company goals.
nagement of business with usage of the Manage-
ment 2.0 model. The report was met with enthusi- The crisis tendencies have introduced corrective
asm by the participants of conference, as for many amendments to estimated parameter structures. So
Russian companies the absence of system manage- within the financial perspective framework, EBIT-
ment is one of the main reasons for low business DA was suggested instead of a net profit parame-
efficiency. ter. For client base quality monitoring quantity,
new and old clients in a sectional view of market
The Russian lecturers shared their experience of segments was offered. From the perspective of
different controlling tools used by the companies business processes for the definition of an optima-
with allowance for the crisis situation in the mar- lity of goods briefcase, the goods stock limits para-
ket. Uri Fedyashov (“Takt” group of companies – meters are recommended instead of turnover. The
construction and building materials production) customer’s service quality improvement has de-
reported on the practice of BSC building, which manded the introduction of a “percentage of fulfil-
works in the company to the full extent as the basis lment of delivery schedule” parameter. The use of
for the system management of business, by focus- the CRM system helps to identify, to differentiate
ing attention on representative and often admitted and to control relationships with the client on the
errors: basis of full automation with “1C Rarus CRM” pro-
gram usage.
• Absence of unified comprehension by the top Uri Nahodkin (President of “GMG – real estate”
and average managers of mission and strategy group) spoke about strategic controlling methods
of the company used in his companies and the advantages which
• Density on the financial indexations, instead of proprietors can benefit from with strategic control-
client perspective parameters (weak study of the ling availability: Transparency and controllability
marketing strategy, imperfect sales business of business. A prerogative of the shareholders is
process) the definition of the direction and purpose of com-
16 CONTROLLER Spezial | Controlling International

2. controlling The ICV conference
speakers had an excursion
to the Courland Spit.
pany development (“Which jungle are we in?”). On the part of the creditors is:
The strategic controlling levels were marked, the • “Each to their own”
approaches to the creation of strategic operations • Absence of transparency in relation to other
programs were considered, a system of motivation creditors
with usage of management by objectives and BSC • Effect of average general costs on the size
were discussed, and the company budgeting phi- of bank reserves
losophy was presented. • Difference in the approaches between Russian
and international banks
Alexander Lubinsky (“Holmrock” group of compa- • Preference to put aside the solution of problems Alexander Barinov,
nies – computer equipment supply) shared his ex- for the future. Rector of KIBS
perience in a field of development, introduction
and usage of CRM system in the company. The As the guidelines on optimization of tax payments
activity of project implementation processes has in a part of the profit tax, the following is offered:
been increased by the financial and economic cri- To make changes to amortization policy, to make
sis, which showed that the client is the main asset, an order in liabilities interest calculation, to use
a unique source of profit obtaining and further factoring, to integrate the profitable and unprofita-
company development. A low price, mass adverti- ble companies, and to create reserves on doubtful
sing and conventional marketing no longer gua- duties. With value-added tax, special attention is
rantee successful sales, even with a solvent buyers’ given to the control of the basic documents for
market in a phase of saturation. operating, obtaining of the right on “deduction”,
As a result of CRM system implementation, ma- capability of release from tax payment at a de-
nagement and staff finally gain a legible under- crease of sales up to 2 million rbl. per quarter, and
standing of client inquiries, which gives an indispu- minimization of tax at implementation of import Galina Usenkova,
table competitive advantage in conditions of fal- deliveries outside Russia. Secretary in charge, Club of
administrative and financial
ling demand.
controllers;
In conditions of decreasing demand and restricted The Western speakers (Slavimir Pieloch, Poland;
General Director “Audit
liquidity, many other methods are used alongside Aiste Loergen, Lithuania; Harald Kitzman, Estonia;
Service”
conventional controlling tools: Important restructu- Hans-Peter Sander, Germany) showed practical
ring of duties or percentage payments, sale of un- materials on controlling methods. The problems of
profitable assets, and company tax load control. budgeting system implementation, costs accoun-
The joint report of Anton Vaishnurs and Alexey ting, and controlling development tendencies in
Mel‘nikov (Deloitte & Touché, St. Petersburg) was the West were considered.
dedicated to these problems. The features of finan-
cial restructuring in Russia were classified. Conference participants gave positive feedback
on the presentation depth and practicality for the
On the part of the borrowers is: Russian companies in tackling their problems. Its
• Denying of financial problems important to say that the conference underlined a
• Reduction of a working capital for service of miscellaneous level of controlling development in
the debt, inefficient amortization policy Russia and European countries: If the Russian com-
• Absence of transparency in relation to the panies are still engaged in the search and primary
creditors introduction of controlling methods, European
• Absence of the coordinated negotiations companies are at a stage of tuning the set-up of
with banks these tools. This makes listening to one another all
• Focus on “soft” restructuring (“crisis – temporary the more interesting.
phenomenon and situation will change soon”)
• Hope for state support.
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