Management Control

Management control in mid sized business is frequently dealt with as a purely operational issue. However, effective and ultimately more efficient management control needs to be fundamentally strategic, because only by taking a strategic position will a company succeed or recover operatively. Businesses need to understand that a stringent, measurable and agreed strategy has to form the basis of the company’s approach to attain mid to long term business objectives.

From the strategy it is then essential to develop a suitable operative business plan and open reporting system. However, this must not be a one-way street. Rather, the expertise and knowledge coming from daily business operations must be considered and reviewed alongside the company’s strategic objectives at regular intervals and, if necessary, measures and adjustments initiated. In so far as it is possible, it is critical to establish procedures that integrate the strategic and operational elements of the business (see slide below).

Strategic Management Control

Concentro offers strategic management control advice in the two essential phases of the strategic process:

• Strategy Development
• Strategy Implementation

Here at Concentro we have defined and adapted tools and processes to deliver the necessary transformation to meet the concerns and needs of mid sized companies. Pragmatic and robust solutions are at the forefront of our approach to strategic management control, because ultimately this is the only way to bring about strategic change.

Strategy Development

Concentro advises and supports clients in the strategic development phase. In particular we assist companies with strategic analysis, the formulation of a mission and/or vision statement, the determination of the companies aims and objectives and the development of an overarching management strategy. During this period we utilise our know-how and expertise to compliment our client’s knowledge of their business and market, along with, if necessary, the selective use of external experts in specific areas of relevant expertise. By bringing together this collective expertise, and utilising our successful business strategy models and tools, we are able to successfully support our clients in the structure and development of their management strategy.

Strategy Implementation

The strategy development phase begins with definition of the strategic objectives. This is also the time to specify and define the measurement categories (key data) along with the definition of the key targets to be reached over a period of time (up to 3-5 years in the future). This is important because it is only when a strategy is truly measurable that it can be correctly managed. Implementation must additionally consider those constructive operational elements of the strategy that will lead to the successful attainment of the strategic objectives, including any arrangements or measures necessary to cover expected financial and/or monetary issues (e.g. revenues, costs and cashflow). The end result will be a robust, comprehensive, multi-year strategic plan (P&L, balance sheet and cashflow) to support the company’s ongoing business and future development. The strategic plan will also provide the framework and starting point for operative planning and ultimately for the successful control of then operative business.

The formulation of the strategic targets and objectives, the definition of strategic measurements plus the multi-year plan provides the groundwork for strategic management control. At Concentro, therefore, we have established a strategic controlling process, which requires quarterly status reports about the success of meeting strategic objectives and measurements. Furthermore, these reports can be used to identify, formulate and put in place new control measures or change existing measures.

Operational Management Control

Concentro Management offers a number of operational management services to help client companies to improve their efficiency and productivity. These include:

• Corporate and financial planning (P&L, Balance sheets and cashflow), budgeting and forecasting;
• Reporting, MIS and performance measurement (management reporting and reporting for external parties);
• Costing – revenues and financial statements;
• Operational control processes;
• Analysis and conception of business administration (company organisation and structure/ processes/financial instruments);
• Assistance with software choices and implementation thereof;
• Training and professional development of employees

Together with a client’s project team we can design and develop control measures and adapt workflows for planning, reporting and accounting. We also undertake variance analysis and control. Our prime focus is to provide our clients with the operational management support they require to optimise their operational management of their company.

We regularly work with our clients not just during the concept phase, but also into the implementation stage. During this stage, we provide support in daily activities, for example assistance with the creation of corporate and financial planning, with choosing and implementing appropriate software, and with the training and development of employees. Because it is our view that only if a concept is clearly understood and properly implemented will it bring the added value sought by our clients.

Finally, if requirements demand it we can, if instructed, provide operative support by taking on temporary responsibility for the client’s accounts and book-keeping (daily and monthly procedures).