HISTORICAL DEVELOPMENT OF CONTROLLING

The article examines the historical development of controlling as a management discipline, tracing its evolution from rudimentary accounting practices to a sophisticated strategic tool. The study begins with the origins of controlling in the Middle Ages, when merchants in Italian city-states used basic record-keeping to track financial transactions. The introduction of double-entry bookkeeping by Luca Pacioli in 1494 laid the groundwork for systematic financial control. The Industrial Revolution in the 18th–19th centuries necessitated advanced cost accounting methods, marking the emergence of managerial accounting. In the early 20th century, the American model of budgetary control, pioneered by companies like DuPont and General Motors, introduced structured planning and variance analysis, while Frederick Taylor’s scientific management principles shaped operational controlling. Concurrently, the German school, led by Eugen Schmalenbach and Albrecht Deyhle, emphasized cost calculation and strategic coordination, defining controlling as “management of management”. The late 20th century saw controlling evolve under globalization and technological advancements, with tools like the Balanced Scorecard and ERP systems (e.g., SAP) enabling real-time data analysis and strategic alignment. In the 21st century, controlling has been transformed by Big Data, artificial intelligence, and ESG (Environmental, Social, Governance) principles, integrating sustainability metrics into performance evaluation. The role of controllers has shifted from data analysts to strategic partners in corporate decision-making. In Ukraine, controlling emerged in the 1990s during the transition to a market economy, with large enterprises like Metinvest adopting Western models. However, small and medium-sized businesses face challenges due to limited resources and expertise. The article highlights controlling’s adaptability to economic, technological, and social changes, underscoring its critical role in ensuring organizational competitiveness and outlining future prospects in the era of digitalization and sustainable development.