Global competition

Today, China is the only remaining world power apart from the USA, while India is preparing to become the third largest economy in the world. Both countries are pursuing long-term economic and geopolitical strategies aimed at expanding their role in the global power structure. While China is asserting its economic interests through state control and massive promotion of innovation, India is positioning itself as a democratic alternative with growing self-confidence and economic dynamism. In Europe, on the other hand, the focus is often inward-looking. Discussions about national politics, internal EU issues or detailed regulatory debates dominate – while the global balance of power is changing fundamentally. This discrepancy between global change and regional self-employment poses enormous challenges for European companies and their management systems.

The overall geopolitical situation is intensifying: trade conflicts, increasing rivalry between the US and China, changes in US foreign and economic policy. At the same time, the relationship between China and India is also ambiguous: the relationship fluctuates between economic cooperation and political competition. Both countries maintain differentiated relations with Russia, react pragmatically to Western sanctions and, above all, pursue their own interests. Europe is often perceived as economically relevant but politically weak – as a player without a clear line or long-term strategy.

In this new world order, companies are confronted with uncertainty that goes far beyond economic fluctuations. The risks arising from geopolitical power shifts, fragmented supply chains, new alliance systems and regulatory complexity can no longer be managed by traditional means. This is precisely where controlling comes into play – or rather: it must reposition itself. Today, controlling is no longer just the authority for planning, budgeting and variance analysis, but is becoming the central interface between corporate strategy, risk analysis and decision support.

Global developments can no longer be ignored. They must be actively observed, understood and integrated into corporate management. This means that controllers must learn to think about geopolitical scenarios, analyze economic policy implications and derive concrete options for action. Supply chain planning, location decisions, investment calculations or even the evaluation of business opportunities in third countries – all of these topics are now directly linked to geopolitical factors. A strategically active controlling department must be able to recognize and explain these correlations.

Controlling must evolve from a reactive to a proactive player. It is no longer enough to react to deviations or analyze historical developments. What is needed is controlling that anticipates, interprets and navigates – an intelligent control center in an increasingly complex environment. This requires not only new tools, but above all a new mindset: international, interdisciplinary and future-oriented.

Europe is at a crossroads. If it does not manage to act more strategically in economic terms and present a more united geopolitical front, it will lose influence in global competition. Companies can and must lead the way here – and controlling plays a key role in this. It has the potential to build the economic bridge between operational business and strategic shaping of the future. Those who understand this will make controlling the backbone of sustainable corporate management.

Global competition is not an abstract topic for foreign politicians – it has long been a reality in the offices of planners, financiers and decision-makers. Controlling that embraces and actively shapes this change becomes a strategic navigation system in a changing world.

But how can this be achieved? The first solutions lie in the consistent integration of risk management into strategic planning. Scenario analyses help to systematically think through possible geopolitical developments and develop robust options for action. The use of predictive analytics and artificial intelligence also opens up new opportunities to better anticipate uncertainties – for example by simulating supply chain risks or analyzing international factors influencing business models. The ICV actively addresses these topics and provides valuable impetus with expert groups, impulses from the Ideas Workshop and events such as the Congress of Controllers. Companies that use these tools and continue to develop within the network can turn controlling into a forward-looking management center – analytically strong, strategically thinking and capable of acting in a global context.