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Any diffusion, publication or exploitation requires to cite the source: International Observatory of
Management Control - DFCG – Decision Performance Conseil
In line with the previous year approach, we asked Financial Directors about methods used for
their Management Control. We selected the following methods:
•
Benchmark: we can compare the company’s performance with those of similar companies
•
Balanced scoreboard: in an uncertain environment, prospective dashboards may
anticipate predictable evolution. They track the company’s performance beyond pure
financial performance.
•
Activity Based Costing/Activity Based Management: as a result of the increasing portion
of indirect cost in total cost, we have recourse to alternative cost allocation method. The
ABC/ABM method is a solution for improving the understanding of
creation cost
mechanisms
.
•
Zero Based Budget: under this method, the baseline is not automatically approved year
after year. Every expense must be justified. We focus on those expenses creating value.
BENCHMARK REMAINS PREDOMINANT, THE BBZ IS PROGRESSING SLOWLY, THE BSC IS
MAINLY EMPLOYED BY LARGE ORGANIZATIONS
Observations carried out during the previous IOMC reports remain unchanged: Benchmark is still
the preferred method for putting into perspective the company's performance. The overall rate
of utilization of the Benchmark method (when combining internal and external approach)
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
Internal
benchmark
ABC ABM Balanced
Scorecard
External
benchmark
ZBB
Other
% of use
METHODOLOGY
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