Table Of ContentCONTROLLER AS BUSINESS MANAGER
James T. Lindell, CPA, CGMA, MBA
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Notice to Readers
Controller as Business Manager does not represent an official position of the American Institute of Certified Public
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CIMA, the CGMA designation or the Association of International Certified Professional Accountants. This material is offered with
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ISBN: 978-1-94023-563-9
Acquisitions Editor: Robert Fox
Developmental Editor: Suzanne Morgen
Project Manager: Amy Sykes
To my wife Milli and
Elysse, Korbin and Pierce
ACKNOWLEDGEMENTS
Lao-tzu, a Chinese philosopher, said, “A journey of a thousand miles begins with a single step”. This publication
is a result of many steps and many individuals who guided and influenced my career is so many ways. The
following people made outstanding contributions to my career and to my life:
Edwin T. Lindell, Jr., my father, who recommended that I pursue a career in accounting.
Steve Becker, CPA, my first accounting professor, who taught practical lessons and helped guide me through the
University of Wisconsin at Platteville (UW-Platteville) and into the CPA profession.
Ed Kohl, M.A., who demonstrated servant leadership in all business activities, and was fundamental in the
development of my philosophy of accounting and finance professionals being servants to operations.
Jeffrey Cooke, JD, MBA, my TEC chair, business partner, and coach, who taught me about business strategy.
Scott Miller, CPA/ABV, CVA: “When the student is ready, the teacher shall appear”. Thanks for appearing!
Milli Lindell, my wife and partner, who has been my editor and my support to survive in the entrepreneurial
world.
It is never enough, but I sincerely thank each of you for your help along the way.
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ABOUT THE AUTHOR
James (Jim) T. Lindell, CPA, CGMA, MBA, is the president of Thorsten Consulting Group, Inc., a Wisconsin-
based provider of strategic and financial consulting, professional speaking, training, and executive coaching.
Jim has an extensive background in senior management, including positions as chief financial officer,
corporate controller, and corporate assistant controller. Jim has worked with a variety of industries, including
manufacturing, health care, not for profit, distribution, and food processing.
Jim is a certified public accountant with public accounting experience at several local and regional accounting
firms. He is a chairman of The Executive Committee (TEC) chairman. He is a member (and instructor) of
the American Institute of CPAs and the Wisconsin Institute of CPAs, and a member of the National Speakers
Association.
Jim is the author of “AICPA’s Annual Update for Controllers”, “Strategic Planning: A Simplified and Workable
Approach for Private Companies”, and “AICPA’s Controllership: 25 Critical Lessons from the Trenches”. Jim
also authored and was part of the AICPA video and course “Minimizing the Effects of the Recession on Your
Business”. He is a contributing author of the AICPA program “The Fast Close, Soft Close, Virtual Close? Now
Days not Weeks”.
Jim is a four-time recipient of the AICPA’s Outstanding Discussion Leader Award.
Jim is a member of the folk music group “Deep Pool”, coach of a boys’ high school rugby club, and still plays
“old boys” rugby.
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CONTENTS
INTRODUCTION 1
Expanding Controller Value 1
Factors Currently Influencing Controllers 1
The Path From Controller to Business Partner 3
First Circle—Detail-Oriented Controller 3
Second Circle—Controller and Business Strategy 4
Third Circle—Industry Strategy 4
Fourth Circle—Trends, Politics, Economy 5
Contrast Detailed Controller With Business Partner 5
Survey of What CEOs Want From Controllers and CFOs 5
Themes and Structure of This Book 6
1 CONTROLLER VERSUS BUSINESS MANAGER 11
Controller vs. Business Manager 11
The Role of Controller 11
The Role of Business Manager 11
Contrast Controller With Business Manager 12
Servant Leadership 15
Principles of Servant Leadership 16
Managing Versus Leading 17
2 ORIGIN OF VALUE AND PLANNING CONTINUUM 23
The Overall Planning Model 23
Dreams 24
The Value and Purpose of Dreams and the Relationship to Planning 25
Vision 26
Mission 27
How Do You Make a Mission Statement Come Alive in an Organisation? 28
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Goals 28
Execution 29
Success 30
The Planning Continuum 30
Dreams 31
Vision 31
The Business Plan 31
The Strategic Plan 31
The Annual Plan 31
Three- to Five-Year Plan 32
Risk Management 32
Vacation Metaphor for Planning 32
Identifying the Business Model 34
Creating Value Through Strategic Alignment 35
Driving Value Through an Aligned Culture 43
Clarify Performance Expectations 43
Define Values in Behavioural Terms 45
Hold Leaders and Staff Accountable 46
Getting Started with Your Own Culture Transformation 46
3 CORPORATE CULTURE AND BUSINESS PLANS 49
Corporate Culture and Planning 49
Corporate Culture and Its Relation to Strategic Planning 54
McKinsey Study—Strategic Planning 57
The Business Plan 62
Introduction 62
The Business Plan 62
What Are the Benefits of Using a Business Plan? 62
Considering the Audience for a Business Plan 63
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Business Plan Outline 64
Cover Sheet 65
Table of Contents 65
Executive Summary 65
Company Description 66
Industry Analysis 68
Market Analysis 69
Competition 70
Marketing and Sales 74
Operations 75
Management and Organisation 76
Capitalisation and Structure 77
Development and Milestones 78
Risks and Contingencies 79
Financial Projections 79
Appendices (Optional) 80
Business Plan Pitfalls 80
The Business Plan Is Only Written to Receive Funding 81
The Business Plan Is Written by a Consultant 81
The Business Is Unwilling to Spend the Required Time to Create the Business Plan 81
The Business Does Not Match Its Corporate Culture With the Same Level
of Business Planning 82
The Business Operates in Crisis Mode and Therefore Ignores the Planning Process 82
The Plan Is Not Shared With All Levels of the Organisation 82
Lower Level Employees Had No Input Into the Business Plan 82
The Business Does Not Recognise the Power of a Vision or a Mission Statement 82
Employees Do Not Know How Their Positions Relate to the Business Plan 83
The Business Has Hidden Issues That No One Is Willing to Discuss 83
The Business Is Unwilling to Accept That Its Business Model Is Out of Date
or May Be in Jeopardy 83
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Hockey Stick Projections 83
Underestimating Competition 83
Underestimating Start-up Expenses 84
Overestimating Sales Volume Ramp Up 84
Lack of Consistency in the Plan 84
Lack of Objective Reviewer 84
Owner of Business Plan Is Too Enthusiastic About Derivative Possibilities 84
Market Share Estimates That Have No Support 85
Lack of Visual Charts and Diagrams 85
Credibility of Board of Directors 85
Uncontrolled Spending and Start-up 85
Failure to Review and Include Ratios and Trend Analysis 85
The One-Page Business Plan 86
4 STRATEGIC PLANS 87
The Difference Between a Business Plan and a Strategic Plan 87
Benefits of Strategic Planning 87
Basic Overview of Various Strategic Planning Models 88
Model One—”Basic” Strategic Planning 88
Model Two—Issue-Based (or Goal-Based) Planning 89
Model Three—Alignment Model 89
Model Four—Scenario Planning 90
Model Five—”Organic” (or Self-Organising) Planning 90
Comparison of New Planning to Old Planning 91
Strategic Planning Resources 91
Software Programs 92
Web Sites 92
Government Resources 92
External Consultants 92
Coaches or Facilitators 92
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How Are Departmental Goals Influenced by Strategic Goals? 93
Tools That Are Available to Aid the Strategic Planning Process 93
SWOT Analysis 94
PEST Analysis 95
Scenario Planning 96
Competitive Analysis 97
Goals Grid 97
Focus Groups 98
STP Method 98
Gap Analysis 99
Start and Stop 99
Plus Delta 99
Balanced Scorecard 100
Force Field Analysis 101
Product-Market Growth Matrix 103
Mind Mapping 104
The 5 Whys 105
How To Conduct Strategic Planning for Your Company 106
One-Page Strategic Plan 108
5 LEAN MANAGEMENT, BEST PRACTICES, AND TURNING DATA
INTO KNOWLEDGE 113
Introduction 113
Lean Management 113
Lean Manufacturing Overview and Benefits 114
5S 114
Visual Controls 115
Value Streams 115
Pull 116
Mistake Proofing 116
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