The essential tools in management control
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Management control is a governance system that allows for the analysis of practices, objectives, and the management of a service or a company, with the aim of improving performance. It is a crucial process that responds to a need for ongoing improvement. Qotid today revisits the four essential tools for this process.
The dashboard
The dashboard is the key tool for all structures and businesses. It clearly presents activities and results through the use of indicators that allow you to track your progress against your objectives. It accompanies you daily in your decision-making. It is necessary and important to properly format your dashboard to have a real view of your activity. In this article we share our valuable tips for creating a good dashboard, from its content to its reading and hierarchy. Moreover, for it to be effective, useful, and efficient, it is essential to have a real reflection on the indicators to use. To guide you in this choice, we invite you to read our article, which will enlighten you on essential indicators, the method to follow to choose the most suitable ones, and their implementation and monitoring policy.
The budget forecast
The budget forecast is undoubtedly an indispensable tool within a company for predicting its development. To establish it, you must rely on both the past and the present to make a realistic estimate of future expenses and revenues and thus anticipate the outcome. This tool allows you to plan your revenues and expenses, your personnel resources, and your cash flow needs. It thus allows you to revise your objectives upwards or downwards and to motivate your employees to achieve them. It is almost essential to establish budget forecasts. We invite you to visit this article if you wish to learn more about the method to follow to implement it.
The inventory
A regular inventory allows you to establish a reliable balance sheet for your company. It will especially allow you to know the value of your stock, to check that nothing is missing, and possibly to detect a management error.
This tool, along with good management of your stocks, can ultimately contribute to reducing your costs because it allows you to easily quantify your losses, to anticipate your stock shortages, and to order based on a specific need.
The reporting tool
The last essential internal tool is the reporting tool. It allows the presentation of a report on the activities and results of a company, by returning data over a period. It holds real importance, as it allows tracking the periodic evolution of your revenues, expenses, and key performance indicators.
This tool provides you with a clear visualization of your company's health, such as analyzing the gaps between actuals and forecasts or the gaps between the present and the past. The ultimate goal is to support you in managing your company and to help you make the right strategic decisions that every business leader must make daily. It is especially useful for debriefing with your team since the data is presented in a visual and explicit manner. In this article dedicated to this tool, Qotid presents more explicitly why and how to use it.
All these tools, if used conscientiously and wisely, allow you to increase profitability by contributing to better cost control as well as to the optimization of your results.
To summarize
Management control is a governance system aimed at improving the performance of a company or a service by analyzing its practices, objectives, and management. Qotid revisits the four essential tools for this process:
The dashboard: a key tool for tracking activities and results through key performance indicators (KPI) and assisting in decision-making.
The budget forecast: a tool for predicting future expenses and revenues, planning personnel resources, and anticipating cash flow needs.
The inventory: a tool for knowing the value of stock, checking that nothing is missing, and detecting potential management errors.
The reporting tool: a tool for tracking the periodic evolution of revenues, expenses, and key performance indicators, as well as analyzing the gaps between forecasts and actual results.
Discover the Qotid offering that will guarantee you a conscientious use of these different tools.
F.A.Q :
What is management control?
Management control is a governance system aimed at improving the performance of a company or a service by analyzing its practices, objectives, and management.
What are the essential tools for management control?
The four essential tools for management control are the dashboard, the budget forecast, the inventory, and the reporting tool.
What is a dashboard and what is its purpose?
A dashboard is a key tool for tracking the activities and results of a company through key performance indicators (KPI) and assisting in decision-making. It is necessary to properly format the dashboard to have a real view of its activity.
