Management Planning and Control Systems AKADMS 4570

1
Management Planning and Control Systems AK/ADMS
4570
MPCS to Implement Strategy

• set a framework

• systems as levers of control

2
How do you define a successful company or
business?

• makes money

• is sustainable

• is efficient

• has a brand name

3
Strategy Create Value
Formulation from Vision to Plans
Implementation Performance Measurement
4
Business Strategy How the company chooses to
compete (core competences) Corporate Level
Strategy array of businesses Business unit
level strategy defined product markets Business
Goals Specific measurable objectives set for
managers in pursuit of strategy.
5
Competitive Firm-specific resources Market
Dynamics SWOT capabilities MIS
SION BUSINESS STRATEGY
PERFORMANCE GOALS MEASURES ACTIONS
6
Management Planning and Control Systems

• Set Direction

7
Balancing Organizational Tensions 1 Profit,
vs growth, vs control 2 Short-term vs
long-term 3 Performance expectations of
different constituencies 4 Opportunities vs
attention 5 Human behaviour
growth
Business Strategy
profit
control
8
Management Planning and Control Systems

• Set Direction

• Assess the achievement of goals

• Provide for accountability

9
Choosing What to Control
Technical feasibility of monitoring measuring
Understanding cause effect
Cost
Desired level of innovation
10
Span of control how many people report to a
manager narrow span 1-3 people wide span 7 or
more people. Span of accountability the range
of performance measures used to asses a managers
achievements. narrow span cost centre. wide
span profit centre. Span of attention the
domain of activities within a managers
view narrow span centralized organization. wide
span decentralized organization.
11
Management Planning and Control Systems

• Set Direction

• Assess the achievement of goals

• Provide for accountability

• Allow feedback to adjust direction

12
Uses of Information Decision making
Planning Co-ordination Control
Ex-post evaluation Motivation through
extrinsic/intrinsic rewards Signaling Educatio
n learning External communication Investors
, lenders their advisors Suppliers
business partners Customers Employees.
13
Management Planning and Control Systems
Planning (coordinate) Innovation Flexibility

• Set Direction

• Assess the achievement of goals

Control (monitor) Responsibility Set Limits

• Provide for accountability

• Allow feedback to adjust direction

14
Quiz Time

• 20 minutes
• Remain silent
• Do not cheat
• Classes re-start in 30 minutes
• Get ready to discuss the case of Roy Rogers
  Restaurant