In a world of incredibly rapid evolution, information overload and globalization, which implies the decentralization and outsourcing of services, managers increasingly need to surround themselves with good reports on which to base their decision-making. However, having access to strategic information is not enough. You need to have control of processes and projects to transform performance information into good results.
In management, Deming's maxim "what isn't measured isn't managed" is a motto that guides many managers in organizations of all sizes. However, just measuring is no longer enough. You have to control what has been measured. With this in mind, Joseph Moses Juran said in 1992: "To manage is to control and act correctly. Without control there is no management. Without measurement there is no control". (Juran, 1992).
Measurement is done by defining performance indicators and their respective goals with deployment throughout the organization, which are constantly monitored. The indicator helps the manager understand how their business is doing and allows them to identify what efforts are necessary to achieve the planned results, whether they are cost reduction, productivity increase, customer satisfaction, etc. For effective monitoring, reports and dashboards are useful tools to track goals and indicators, however, to have control something more is needed.
Effectively implementing management control
When a manager sees in a report that a target has not been met, he or she needs to have tools at hand to take action. Ideally, this should be done using an automated system that controls indicators, targets, processes and projects all in one place.
With a automated management systemIn this way, control activities that would take time to implement and require numerous internal processes can be carried out quickly and automatically. For example Strategic Management Software of Stratec (GE), the manager, upon seeing an undesirable result, can immediately identify the person responsible for the indicator and evaluate the analysis report of the results achieved, with just a few clicks. The manager can also evaluate the action plan or even suggest new actions that could contribute to achieving the target next month.
The manager can also request a justification report, which can be a fact, cause and action report or a three-generation report, in which the person responsible for the target will report what happened that led to the target not being reached, the analysis of the causes and what they are proposing to do the following month to avoid the same poor performance. It is possible to know which activities will be carried out, by whom and when. What's more, the manager can schedule them through the complete a meeting with the person responsible to define a new action plan.
Another point worth highlighting control implementation is the complexity of each of the organization's strategic objectives. In reports and dashboards Commonly, information needs to be succinct and quick to interpret so that decisions can be made quickly. However, the manager in these cases runs the risk of misinterpreting a result in a simplistic way. We know that strategic objectives have a multitude of indicators and targets that reflect the organization's processes, but they also depend on the successful execution of corporate projects or strategic initiatives. That's why it's often not enough to work only with targets in indicators or existing processes. It is also necessary to control corporate projects to ensure that the strategic objective is achieved.
At GE, if we analyze a strategic objective, in addition to the indicators, it is possible to see the projects that are supporting that objective. It is therefore possible to distribute a portfolio of projects to be carried out to managers and leadership positions. The projects can then be monitored by the timetable and action plan and the manager can see if the project activities are being carried out on schedule or if there are any activities that are behind schedule. In addition, it is possible to drill down even further by entering each project and seeing who is responsible, the scope, budget and status. You can also configure the system so that whenever a key activity is delayed, the person responsible for the project is notified via e-mail. The system's alerts can be configured according to the organization's hierarchies.
In this way, managers have a tool in their hands that enables them to actually control the company's operations and not just monitor them, providing more assertive analysis and decisions and reducing risks.
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