The challenges of controlling in Russia

The Russian economy works differently than that in Switzerland: Russian companies often see the treasury, followed by customs authorities, as their biggest enemy. At the same time, traditional companies in Russia are often managed according to the top-down principle. These conditions make it difficult for Swiss companies to implement controlling for a Russian subsidiary.

Cultural differences can become a stumbling block for controlling in Russia
Cultural differences can become a stumbling block for controlling in Russia

To implement controlling in a more traditionally established Russian subsidiary and avoid conflicts, an expat can be helpful. This person will be temporarily posted to the overseas branch and can assist and control the process there.
However, before Swiss companies introduce controlling in Russia, you must have made the following preliminary clarifications:

  • Does the onsite manager suit the leadership concept?
  • Have the local colleagues on the spot been trained?
  • Are the IT structures suitable for controlling?
  • In which currency is the controlling to be carried out?
  • How are exchange rate effects taken into account?

If these points are taken into account, the content-based implementation of the controlling can now follow. If the system yields comprehensible data, it quickly becomes clear that Russian employees will work with the controlling instrument willingly and intensively.

The detailed report from our experts at Swilar regarding controlling in Russia can be found in the download area.

 Exporting to Russia?

Do you want to expand your business to Russia, but do not know how? Our S-GE consultant for Russia, Michael Kühn, is available to answer your questions. Contact us now

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