1. Why should we do this?

It’s an excellent question.

If you have software such as “Greko”, you also take over the leadership philosophy that this tool brings.

Maybe I should tell you when I encorporated such philosophy to my life: “When I was a leader in a family business, we had monthly meetings for comparison of planned/actual data.

Since the budget planning was based on a monthly performance of 160 hours – and I worked twice as many hours – there was always a “negative” deviation in euros in my area. I was very ambitious and took on projects that would not have had a chance to cope in normal working hours. Actually, the comparison of planned/actual data was just a collection of cost types, not a real activity costing.

As was customary in many companies, “only” allocations were distributed to the respective cost centers. This means that there was no meaningful information about fair costs to benefits! (I had done more than my colleague and therefore I stood there as a budget overdraft!)

In the course of further education, I worked as a commercial manager and I came across “Greko”. From that time on, I had an instrument that brought the costs and benefits in a relationship and so, logically, more cost could be caused by more power. With that, I had found the “fair” instrument that actually represents the performance that was provided. The most important question for me: “Not where the costs came from, but what actions brought them” finally brings life into the organization.

This question increases communication and brings executives and employees together to the table. Thus, each employee sees where their services arise (cost center / reference / sub-process) and where they are charged (for example, cost unit costing). At the end of the day, we have information for corporate management in a broader sense.

The beauty of the Greko philosophy is that, like bowling, employees can see the results of their accomplishments in an honest, fair way. Of course this creates the urge for improvement. We, as the managers, share an obligation to lead our employees to achieve their goals. The prerequisite is a clearly formulated strategic goal.

2. How long does the introduction take?

It would be presumptuous to make a concrete statement here. My way to determine this is to set up a quantity structure.

  • How many cost centers?
  • How many cost types?
  • How many cost objects?
  • Do we get data from the collection of actual activities?

As a rule, there are several prerequisites for a successful introduction. For a medium-sized company, these are:

  • Accounting is “up to date”
  • There is also a collection of actual activities and the data is available
  • Good communication between managers and employees
  • The willingness of the management to be fully behind it
  • Two employees (controllers) who are available for the project

If these conditions are met, the introduction should takefrom 6 to 8 days.

3. How much capacity or resources must be available for implementation?

  • Management and executives for the target agreement and the kick-off meeting
  • “All” employees (including cleaning staff) for the project presentation
  • Each cost center to the extent of approximately 2 hours accompanied by a project manager
  • Controllers, IT technicians, system support for the interfaces
  • Management for the interim reports
  • Controllers for the preparation
  • Management consultant present throughout the whole project

4. What do we need before the introduction?

  • An initiator, a management that is fully behind it and employees who want to value their achievements.
  • Plan or actual data from the financial accounting
  • Actual costs, actual revenues and actual benefits

5. What does "Greko" actually mean?

“Greko” is the abbreviation for “Process Compliant Resource Consumption Accounting (German:”prozesskonforme Grenzplankostenrechnung”)”. First of all, a remark for all those who have studied Business Administration: Resource Consumption Accounting not only works for unit costs in the industry, but also in the administration areas, in administration and sales, especially in service companies

6. What do the managers and employees have from it?

  • On the basis of cost centers, cost objects, projects, orders, etc., the actions of managers and employees are transparently presented to them
  • Autonomous self-control with feedback
  • Leading without feedback is like driving car from the mountain Großglockner, in fog, at 130 km / h.

7. When is the right time for the introduction?

There is always a right time: “now”!

8. When can we expect meaningful information from Greko?

Analytical planning produces standard cost estimates for your products and services.

This process is simply unbelievable, there are uneconomical issues discovered that employees can rectify immediately – because they become transparent.

All who seek for quality assurance are reinstated because they receive calculated processes and thus receive feedback for the implementation of the suggestions for improvement, whether the measure worked or not.

Generally speaking, expect 1-2 years until Greko “works”. It also depends on the discipline of the organization.

We settle every month and get a feedback, if the planning is consistent.

9. Where is the data processed for the takeover?

The actual costs and actual revenues come from financial accounting, which plays an important role in the account assignment. It’s where the basic data and actual data for financial planning come from. The actual benefits come in companies that are already living the digitization, from the IT. Manual captures only when it is really so important and not otherwise. If there is no data at all, we calculate the performance records retrogradely.

10. How long does the account of actual cost take?

Depending on the processing, the first account of actual cost come from the financial accounting interface with rework for actual costs and actual revenues in 1 to 2 hours. The preparation of Excel files, which are not yet standardized, require one day at the beginning and are usually reduced to a few button presses.