A group of friends decided to plan a three-week holiday together.
First, they chose "snow holidays" and opted for a small, hard-to-access resort, but one that guaranteed safety for sports practice, even under unfavorable weather conditions. They assessed the costs, distance, and travel time, and chose a four-wheel drive vehicle for transport. They renewed their snow gear and prepared the vehicle with new tires, an automatic system to monitor tire pressure and temperature, and a modern GPS.
With the trip requiring three days, they set daily distance goals to stay overnight in places with suitable conditions. They estimated expenses and set limits, such as the amount to spend on accommodation, synthesizing everything in the "holiday budget." They decided to rigorously follow the snow bulletins in the two weeks before departure, ready to change the destination if necessary. They developed an alternative plan, "mountain holidays," in case the climate turned adverse.
With this meticulous planning, they departed confident that they had minimized the risks of failure and that they would arrive at their destination without disturbances. Had they reversed or ignored steps, they would have faced confusion, poor resource management, and a high risk of failure.
This example illustrates the importance of methodological rigor in the design and implementation of management control systems. The proper approach avoids disorganization and ensures that resources are used effectively. To achieve a successful management control system, consider the following steps:
1. Clarify Objectives
Translate the vision and strategy of the organization into concrete objectives that reflect critical aspects of daily life. Control only what is essential for success, avoiding the dispersion of efforts.
2. Choose the Right Tools
Identify the key indicators and organizational options best suited to monitor and measure the progress of critical objectives.
3. Implement an Effective Communication Plan
Clearly explain why you decided to move forward with new management tools and solutions, what you expect from them, and how they should be used by everyone.
4. Establish Routines for Evaluation and Learning
Create an organizational culture focused on continuous learning and strategic alignment, ensuring that management control is useful and contributes to achieving strategic objectives.
By following these steps, your organization will advance with safety and purpose, aligning strategy and performance for sustainable growth.
The Executive Training Program "Management Control and Performance Evaluation" at Porto Business School, co-led by Joaquim Barreiros, offers a unique opportunity to deepen knowledge and transform your organization's performance.
The next edition of the program “Management Control and Performance Evaluation” starts on June 3. For more information and registrations, visit here.
