Instructional goals
The purpose of the course is to develop the knowledge of planning and control process in its stages of implementing strategies, measuring performances and supporting management decisions. In particular the course presents management control and strategic control activities as a process of general management in the frame of firm's strategy and organization. Furthermore the course deeps down into technical instruments and processes: center of responsibilities, budget and quarterly forecast, product cost and margin analysis, Activity Based Costing, financial and non-financial KPIs (with a focus on ESG indicators), measuring results and reporting, Balanced score-card. The course includes discussion in class of cases, exercises at home to be collectively reviewed in class, group cases, in class analysis of company's reports and a Company’s presentation of a platform of Business Intelligence.
Prerequisites
Basic knowledge of accounting and financial reporting. Basic knowledge of strategy and organization.
Intended learning outcomes
Comprehensive knowledge of processes and instruments of management and strategic control. Initial ability of their application to the activities of R&D, sale and marketing and manufacturing within a complex and integrated business unit.
Course Contents
Strategic planning process, multi-year plan and budget Strategic control, management control, task control and its difference vs internal control The management Control system : Organization, instruments and process The center of responsibilities (cases) The instruments of management control system and their adaptation to the company's strategy and profile Budget (case) and quarterly forecast Revenues analysis Cost configurations, cost analysis and standard cost Contribution Margin and Break-even point Different methodologies to compute the full cost of a product (case) Activity Based Costing. The variation analysis for revenues, costs and margin Controlling R&D activities. Zero Base Budget to control overhead costs Measuring shareholders' return Capital budget and Financial Measures for capital allocation The Critical Success Factors Key Performance Indicators: financial and non-financial measures Reporting (reading a tableau de bord) Business Intelligence (company’s presentation) The Balanced Score Card Case: adapting the management control system to the strategic and functional character of the company.
Reference Books
REFERENCE BOOK Carlo M Ferro “Pianificazione e Controllo: eseguire la strategia per creare valore” – THIRD EDITION September 2025 -LUP, excluding chapters 1, 9, 12 e 16. RECCOMENDED READING N Anthony The Management Control Function - Harvard Business School Press H. Thomas Johnson Robert S Kaplan Relevance Lost, the rise and fall of management accounting, Harvard Business School Press, Capp 2,3,4,5, 6, 11. Robert S Kaplan, David P Norton Balanced Scorecard Harvard Business School Press Chap.from 1 to 7 DECK OF LESSONS, CASES AND EXERCISES DISTRIBUTED IN CLASS
Teaching Methods
The course will be a combination of lectures, problem-solving, case studies, external company’s presentation, home assignments, exercises made with TA in weekly meetings (optional) and interactive in-class discussions of company's reports Two cases to be prepared in group and discussed in class will be relevant to the final valuation. Dry-run of final test done with TA.
Assessment Method
Attending lessons students: 17% Case Anselmo (full cost of products) in groups, 17% Case Tondino (budget) in groups; 66% Final exam: written test (case on responsibility centers, multiple choices and 2 quick computation exercise) and short oral discussion on the whole program excluding the matters of the two cases above (budget preparation and product cost). Authorized non attending lessons students: Witten test and oral discussion on the whole program
Thesis assignment criteria
Ability and interest to research on this topic, motivation – based on final grade or active participation to the course – and original content. In particular, the decision concerning the supervision of the thesis will be taken upon the presentation of index / structure of the thesis.
Week 1
Introduction Strategic Planning, Multi-year Plan & Budget Strategic Control, Management Control & Operational Control Differences vs. Internal Control and ERM. introduction on centers of responsibility.
Week 2
The economic responsibilities in a corporate organization: the centers of responsibility Center of Revenues, Cost, Expenses, Profit, Investment and Enterprise Cases in class and home-work exercises to be reviewed collectively at the next class lesson
Week 3
The Budget: objectives, process, content. Quarterly Forecast: objectives and process. The case “Società Tondino”: building a budget and role-playing (sale, production, controller). Groups’ home-work and discussion in class of results (the performance contributes to the final grading) Treasury Budget. Exercises on analysis for budget decisions
Week 4
Cost colassification and its use, P&L analysis The relationship costs-volume: fix and variable costs Uses of Contribution Margin and Break-even Point (BEP). Exercises on the use of BEP for management decision The Standard Cost and its calculation Standard Margin and its use
Week 5
The calculation of Product Cost: direct and indirect costs and Full Cost Methodologies to allocate the indirect costs Activity-based Cost Exercises on ABC in class and home-work exercises to be reviewed collectively in class at the next lesson Target Costing The case “Anselmo Srl”: the calculation of Full Cost according to different methodologies. Groups’ home-work and discussion in class of results (the performance contributes to the final grading)
Week 6
Change Analysis for centers of Revenues, Cost and profit. Cases in class and home-work exercises to be reviewed collectively in class at the next lesson. Controlling R&D expenses: use of project’s forecast and strategic control. In class discussion of a tableau de bord for R&D activities
Week 7
Case Anselmo groups’ review (see week 5) Planning and Control of the Overhead Costs through a Zero Base Budget process
Week 8
Operational performance and Shareholders Value Creation: analysis of Employed and Invested Capital and ROIC FCF and NFP –Capital Structure, WACC, Financial Leverage, Total Shareholders Return, EVA
Week 9
Groups’ presentation of results on case “Società Tondino” (see week 3) Measuring Shareholders Return Analysis to support investment decisions: NPV, IRR, Payback period, calculation of WACC
Week 10
Reporting and Business Intelligence (BI) Designing a Reporting system based on Critical Success Factors (CSF) Financial and non-financial Key Performance Indicators (KPI)
Week 11
CSF and KPI: reading and discussing in class a corporate report Corporate Case on the BI platform underlying a Reporting System (external lectures)
Week 12
The Balanced Score Card (BSC): objectives, structure and designing method In class discussion of a case on BSC Corporate case summarizing the course’s contents: adapting the Planning and Control System to company’s strategy and momentum. STMicroelectronics case