Strategic Planning in the Small Business

Unit 6

Content

Process

"   Provide latitude for them to use their

own imagination and initiative.

*   Let them know in the beginning

that

you're

going to follow up and do it.

*   Don't do

the job for them.

*   Reward them

commensurately with

the results

that they produce.

Management Control System

When

designing a management control sys­

tem, it is important to

keep in mind what we

first "evaluate" then control.

*   Objectives!!!! Emphasize

the need to keep the focus on the

measurable and quantifiable objectives.

How do we evaluate and
control objectives? Make the point that we can
always adjust

the strategy to meet the objective; or we can

*

By developing a Management Con- change

the objective if it is not realistic.

trol System

What
are the steps involved in developing a

management control
system?

*   Determine what information is

needed to monitor performance by

objective.

Two main areas data must be

collected.

Financial factors -

Tax info

Financial ratios

Accounting

Information, e.g.,

COGS, Sales, etc.

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