identifying what needs to be done for these objectives to be achieved
creating the most appropriate structure
allocating management duties and responsibilities to senior managers
agreeing & establishing a consistent management style
agreeing & setting budgets
agreeing staff incentives
setting sales targets
planning the most efficient use of material resources
setting timetables & deadlines
identifying contingency plans
Points to consider in an action / business plan...
strategy for achieving objectives
specific activities that will be undertaken
allocation of specific responsibilities
start & end dates of each activity
estimated resource requirement
expected cost of activities
Types of control models
critical success factor
key performance indicators
balanced score cards
management by objectives
What are critical success factors (CSFs)?
CSFs are areas that are critical to a company realising their mission either by exploiting opportunities or by fending off dangers posed by external threats of internal weaknesses. Once a CSF has been identified it is aligned with an action point.
Differentiate between results & effort orientated KPIs
results >> bottom line
effort >> level of effectiveness being achieved
Perspectives in balance scorecards...
learning & growth
Definition of budget
...a financial or quantitative statement prepared in advance of a specific accounting period. It typically covers a short period of months (up to a year).
Advantages of budgeting
Unification of effort
Basis of comparison
Steps in the budgetary process
Guidelines from the Chief Executive
Consultation & preparation
Review by budget committee
Methods of budgeting
Zero based budgeting (ZBB)
Causes of variances in budgets
Inaccurate recording of actual costs and revenues
Steps in the decision-making process
Understanding why a decision must be taken
Prior consideration & discussion of the options
Taking the most appropriate decision
5 Cs of decision making
Define knowledge management...
...the compilation and redistribution of an organisation's skills and experience for the benefit of the organisation as a whole. The two main strategies are codification and personalisation.
Points to consider when deciding how to disseminate MI
Clarity is key
Managers need to tailor their communication to their recipients
Managers should ensure that info relating to impending action genuinely pre-empts any action
Written information >> quick & easy to distribute but their is scope for interpretation and can be seen as impersonal
Discuss issues at meetings with staff >> personal; opportunities for questions & clarification
Planned changes that affect staff should be communicated as early as possible