What To Control

WHY CONTROL?

Without being a "control freak" what can the manager do to ensure that necessary controls are in place? An uncontrolled business is like a runaway train. It rapidly keeps going toward an uncertain future with an almost certainty that it will go off track.

HOW TO CONTROL

In the beginning of this article we referred to "control freaks." You know the type. They want to know everything, make sure they are involved in everything, even the most mundane or trivial. How can this type of manager be effective, without going nuts? The answer is, of course, a manager cannot possibly be effective and successful trying to control everything, except for a very short period of time and for a limited number of variables. Modern business are far too complex, and the environment way too unpredictable to accommodate "control freaks." This doesn't mean you should give up on trying to control what happens in your business. Far from it. Control is essential. The manager just needs to be selective, disciplined and creative.

WHAT TO CONTROL

Start by analyzing what are the most important "success factors" for your business. Those areas that are most critical to your enterprise's survival and progress. Typical examples are: sales, costs, personnel, customer responsiveness, etc.

The list should be developed collaboratively with participants from key areas. Managers who are responsible for certain functional areas will typically be pleased by having the opportunity to participate in the process, They want to know and understand the criteria by which their performance will be measured. How else can they improve their performance?

WHO & WHEN

The person(s) responsible for controlling certain aspects of business performance are those having responsibility for the function or task. Whether it is Accounting, Sales, Marketing, Production, etc., the assigned manager is the one who must implement and monitor the control mechanisms. Accountability is another consideration. While the manager can delegate "responsibility," he must retain "accountability." The manager, ultimately, is the individual who is accountable for what takes place in his area,

Time frames are also important. Some factors require daily (or even more frequent) monitoring; others can be tracked weekly or monthly, perhaps even quarterly. Just consider the potential impact on the business and the monitoring time cycle will be apparent. While some expenditures, or income categories can bankrupt the firm quickly (i.e., days or weeks), others might be less critical. The "critical few" must be identified, selected and incorporated into the control and information reporting systems. The parameters for tolerable performance in these areas must also be decided and implemented.

GET STARTED

Don't procrastinate. When it comes to control, information is essential. Actions must be taken promptly when things get off track, so that the course can be corrected.

Realistic control systems and procedures will be a significant advance in securing a bright, profitable, and more certain business future.

Ben A. Carlsen, Ed.D, MBA, is an experienced CEO and manager. Dr. Carlsen has over 30 years experience in management, consulting, and teaching. Currently the Head of the Business Department at Everest Institute, Hialeah, FL., he was Chairman of the Los Angeles County Productivity Managers Network and President of the Association for Systems Management (So. Calif. Chapter). Additional information can be obtained at http://drben.info

What To Control