Evaluation of the effectiveness of strategic and tactical controlling based on the analysis of the company’s financial reports

Abstract

The implementation of controlling is a rational necessity to ensure an effective management system in a company, so it is essential to evaluate its effectiveness in terms of tactical and strategic components. However, there is no general system of indicators reflecting the effectiveness of strategic and tactical controlling, therefore, the purpose of the study was to develop and improve a methodological approach to evaluate the effectiveness of such controlling based on the analysis of the company’s financial reports as a tool for the validity of management decisions. Based on the method of comparative analysis, the differences between tactical and strategic controlling were identified and characterized, which made it possible to specify the criteria for evaluating their effectiveness. It was found that the monitoring basis of controlling mechanisms is comprehensive and covers the entire spectrum of operational and management processes in the company. A system of indicators was formed to evaluate the effectiveness of tactical and strategic controlling. A methodological approach to evaluating the effectiveness of controlling components based on the analysis of the company’s financial reports is proposed. It was tested on the example of PJSC Trust Zhytlobud-1 by calculating generalizing integral indicators of the effectiveness of controlling components based on data from the company’s financial reports. Using the algorithm of the taxonomic analysis method, a matrix of observations was formed and standardized, a reference vector was constructed and integral indicators for evaluating the effectiveness of the company’s tactical and strategic controlling were calculated. The application of the proposed method made it possible to reveal the problematic aspects of distribution processes in the company and in the context of managerial decision-making. This allowed to evaluate the effectiveness of the controlling system in the company and to determine the reserves for improving the effectiveness of controlling processes. The practical value of the study lies in the proposed methodological approach, which may be useful in the process of diagnosing the effectiveness of the quality of managerial decision-making in companies both in the current activity and in the long run.