Design Principles for an Effective Management Control System

Here’s a 30 second guide to what makes up a management control system.

  1. A clear set of strategic objectives
  2. A method for translating strategic objectives into practical measures and KPIs that every person in the organisation can affect in some tangible way
  3. Trusted, clear and accurate management information. Produced in timely way, to the right level of detail to serve an agreed management purpose.
  4. Decision making forums (e.g. meetings) that are clearly defined and well run.
  5. High level, long term review of performance against strategic objectives.

That’s it. Measures and KPIs are one of the cogs in this system, but if any single element of the five steps is broken, or a even a bit wobbly, the an organisation is in trouble.

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