How can you ensure over time that your institution is managed in an effective (achieving the objectives) and efficient (optimising use of resources) way?
Controlling in anglo-saxon management literature is mainly used to describe the analysis of financial data and reporting on these results with the help of specific ratios. Some ratios known are Return-on-Investment, EBIT (Earnings before interest and tax), Debt-Equity Ratio, etc.
But controlling in this Guide refers to the management cycle (Plan - Do - Check - Act) and serves the purpose to understand and improve the management of the institution, i.e., the planning, implementing and controlling of all resources. Top management and any supervisory body of the institution are responsible for controlling the effectiveness and efficiency of management practices and institutional operations, analysing deviations, mistakes or negative results and initiating improvement actions.
In this Guide we will group these activities under the term "internal evaluation".
