International controlling - Estonia

Harald Kitzmann, head of the ICV working group Estonia, on the effect of the global disorder in the finance sector and the impact on controlling in Estonian companies: “In companies and organizations with local focus tasks will change.” Read more here (Download PDF)

"The so-called crisis is nothing more than a correction of the overheating in the economy. Hard but healthy", says Harald Kitzmann, Chair of Operations Management at the Tallinn University of Technology and Leader of ICV working group Estonia. Born and raised in Germany, Harald Kitzmann finds it hard to compare his native land with his new home country. "It is difficult to find any common objectives and focuses between German and Estonian controlling, especially in the present downturn". Why he thinks so, read more about here:

This year's symposium "Controlling in the Baltic States" took place on October 23rd 2008 in Tallinn (Estonia). The organisers were happy to welcome 50 guests from Estonia, Lithuania and Russia (from the region Kaliningrad and Moscow).

The symposium offered a broad spectrum of topics; the guests and the speakers came from both controlling practice and theory.

The speakers of "Controlling in the Baltic States"

The introductory speeches on the present state of controlling in Germany, Estonia, Lithuania and Russia were followed by presentations on practical controlling experience focused on questions of planning.

Professional interpreters (English and Russian) provided for a good understanding of the delivered speeches.

The conference was commented on live under the Weblog http://blog.controllerverein.de/archives/category/live-blogs/cibaltikum-2008/

At the end of the successful symposium Harald Kitzmann, the leader of the work group Estonia, gave us an interview (see the link above). He spoke about the common controlling interests and tasks in the Baltic States and about the role of the International Controller Association as platform of cross-border exchange of experience.

"TÄNAN!" - "Thank you", Tallinn!!!

Exchanging experience

Although the development of controlling goes back to former centuries and the idea of controlling is really widespread throughout the USA and German-speaking Europe, the story of controlling in the countries of Central and Eastern Europe and in the counties of the former Warsaw Pact is a rather shorter story of success.

In the time when Estonia was part of the USSR, scientists and academics had grappled with the subject of controlling.  In Estonia the work of Albert Kadak, Eduard Kull, Erik Linnaks and Kaido Kallas is noteworthy in this context. In the period following the currency reform in 1992 and the accompanying change in the economic system, activity in the field of controlling decreased and was replaced by financial accounting processes. During this time much importance was placed by companies on correct accounting in order to obtain correct statements of their income and their financial situation for the financial authorities.

Particularly in last years, integration into groups of companies increased; this also had the effect that existing internal accounting systems and controlling instruments were used more within organizations. Both proven controlling instruments and newer ones were implemented by the parent companies into their subsidiaries. Traditional bookkeeping and accounting processes within the subsidiary companies were however also cited as important parameters for determining development. Additionally, CIMA, the Russian Controller Association and surely also the International Controller Association supported the development of the controlling understanding in Estonia.

In September 2006, under the auspices of the ICV, controllers in Estonia began to unite. At the start of 2008 a survey in Estonia was carried out concerning the present situation and future development trends in controlling; 40 companies and organiza-tions took part. The bases for this study were the survey of ICV members in 2006, which was carried out and academically analyzed by the Otto Beisheim School of Management.

The companies taking part in the Estonian study achieved an average turnover of 20 million euros and employed around 300 employees. That the companies and institutions represented all industries, and all sizes of organizations, makes clear the SME character of the Estonian economy.

The tasks of controllers are firmly established in their job descriptions and allow little freedom for independent work; they are still strongly determined from above, following strictly hierarchical principles. Read more or download the entire article.

 

 

Harald Kitzmann,
Head of the ICA-working group "Estonia"
kitzmann@hot.ee