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Monday, June 7, 2010

Management Control Systems

Scope of Workshop
  1. Explain what is a system
  2. Explain why systems are necessary
  3. Outline the elements of a management control system
“To live is to change and to be perfect is to have changed often.” (Albert Einstein)

Think back to the first day that you entered and how different things were, you noticed different things. When you come to work day in day out for years problems that you see everyday cause to become problems because they become the ‘norm’.

It is important to adopt a systematic approach to our work I order to ensure the continued success of our business. During the course of your company’s performance improvement project, system and training will therefore be the main focus of attention.

Driver For Sustainable Result



What problems do we have with the current systems?

Problem we all experience:
  • Too much data/no data
  • Data is not timely/available when I need to
  • Data is not in standard format
  • Unclear data
What is the result?
  • I ignore the data
  • I don’t trust the data
  • Data is reported for a while then stopped
  • I can’t compare across departments/product lines
  • I don’t have all/any facts
I make a decision based on my perception

What do we need?
  • Relevant information/data
  • Timely information/data
  • Consistency
  • Simplicity
  • Transparency
What does this give us?
  • The ability to make the best selection based on the available facts which we all perceive in the same way and all understand, and are available to all of us on a timely basis and remain the same even if the heads change.
  • We need a system
What is a system?
  • System information is a logical group of document (or PC/computer based data) and meetings which together provide the current level of control of a process
  • The correct level of routine work that must be carried out if a process is to remain under control at all levels and if opportunities for improvements are to be made visible.
  • To help us plan, monitor and measure events or process that occur within a business, and provide a focus for continuous improvement.
Forecasting ------->; Plan ----->; Control ----->; Reporting
Forecast, Plan, Control and Report when put together forms a Management Control System

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