Management control systems

What does management control system mean?

The reference framework

Control object

Objectives and actions

Azioni

Results

Measurement of results

Analisys of variances

Introduction of corrective actions

The phases of the MCS

Defining objectives and actions

Measuring results

Analysing variances

Introducing corrective actions

The objectives of a MCS

Supporting decision making Motivating people Supporting communication

and coordination Stimulating learning

Improving communication with external stakeholders

Internal accountability

External accountability

The requirements of the MCS

long term orientation

completeness

measurability

timeliness

identification of specific responsibilities

precision

The elements of the MCS

Defining the company’s MCS means:

selecting the dimensions of performance to be measured and the Techniques to be used;

identifying the Structure of the MCS, i.e. the company’s units, systems, and sub-systems of which the results are measured

defining the Process of control, through specifying the resources (people) responsible for each phase of the MCS