Management Control
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A business is no different than a machine. If you can’t control your business, it will eventually fail. The ability to strategically establish management control over operational ‘quality’ is essential!
We are driven to support the management of operational ‘quality’, through the provision of the Predictive Quality Management (PQM) solution. The PQM ‘quality’ management solution enables business leaders to responsibly provide an extraordinary level of management control over sustained and scalable business operations.
Plan the work | Do the work | Check the work | Act to improve constraint(s) to sustain ‘quality’.
performance of an organization. OpEx is best achieved when leaders* provide a structured approach for translating a company’s strategic mission into a concrete tactical plan that enables the organizational capability to achieve the operational results that are required for success.
* Leadership is about inspiring motivating people towards a common goal, where management is about instructing people what to do based on a plan.
Management control for effectively efficient business operations is essential for success.
If you can measure something, you can understand it.
Measurement is the first step that leads to the ‘understanding’ that is necessary for management control, and potentially for improvement.
Measurements should induce the parts to do what is good for the whole, and measurements should direct managers to those parts that need their attention. – Eliyahu Goldratt
“It is wrong to suppose that if you can’t measure it, you can’t manage it.
“There are many things that cannot be measured and still must be managed and that managers must still make decisions about. However, using data to evaluate what is working and what isn’t is a very valuable management practice.” – W. Edwards Deming
In the world of business, performance is the name of the game… Performance for results that matter to the business: Effective Process + Efficient Execution = Performance.
Profitability Equation
A business can improve upon through the generation of more revenue at the operational cost to do so, the generation of the same revenue for a lower cost, or both.
Operational performance affects profitability, therefore, meticulously measuring and tracking operational performance is essential to business success.
Effective work process, efficiently executed, will provide results that matter to the business. However, both common cause variation and special cause variation exist in association with the people, processes and technologies that are utilized within the business operations.
This variation must be understood in conjunction with operational outcomes and managed such that operational ‘quality’ can be predictably managed to enable and ensure ongoing and scalable operational success.
Optimal operational performance measurement requires the capture and utilization of data, utilizing various technologies, to reveal anomalies that are both granular (revealing patterns hidden by top-line averages) and high-frequency (allowing emerging patterns to be identified), in ways that allow an understanding of performance outcome that could not be otherwise known.
Management control is an essential capability, established with metrics (measurement) that are relevant to the business and better visualized utilizing enabling analytical technology to support analysis for understanding. A systemic approach for ensuring ‘understanding for control’ is necessary to successfully manage profitable business operations. When established with the use of technologically, management control is more science than art.
If you can understand it, you can manage it.
This where an understanding of measurement technology is essential.
The effectivity and efficiency of business processes, inclusive of the associated variation, must be understood in conjunction with operational outcomes and managed such that operational ‘quality’ can be systemically measured, enabling the identification of operational constraint. This doesn’t just happen ‘automagically’, nor without effort.
“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skillful execution; it represents the wise choice of many alternatives” - Unknown
The ‘Check’ phase of the Predictive Quality Management (PQM) operational ‘quality’ management system was designed to enable the capability for the systemic measurement of business operations.
The capability to identify operational constraint in effectiveness and efficiency in a systemic manner is essential and necessary to identify and address operational constraint.
“Efficiency is doing things right; effectiveness is doing the right thing.” - Peter Drucker
- Effective involves "producing a result that is wanted."
- Efficient involves "producing desired results without wasting materials, time, or energy."
There exists a detailed pathway to unlock the capability to utilize data for understanding:
The strategic use of measurement technology is required for optimal management control.
Scalability of Measurement Technology
A business, any business, cannot scale without predictable ‘quality’ management over operational ‘quality’ to ensure performance for results.
The term ‘scalability’ describes the ability of your business rise to the challenge when the need for an increase in operational output, resultant from revenue generation success associated with revenue operations. Strategically scaling a business in consideration of a revenue generation strategy and in accordance with operational requirements is necessary to be effectively efficient for sustainable growth.
Many businesses don’t typically have a fully developed business model at initiation that is suitable for scalability. More crucially, they typically lack and adequate understanding of measurement and/or measurement technology to move onto more mature phases of business operations.
Consider the airplane/machine analogy that was used at the beginning of this article. An early-stage business may have only scaled enough to require the performance visibility that might have been associated with the Spirit of St. Louis, while a significantly mature business would require the measurement technology associated with a modern aircraft to provide the performance information necessary to run a mature business. The measurement and technology strategy must be capable of ‘scaling’ with the growth of the company.
The PQM ‘quality’ management solution enables business leaders to responsibly provide an extraordinary level of management control over sustained and scalable business operations.
Measurement technology must be scalable for ongoing management control.
If you can manage it, you can improve it.
Effectively efficient ‘quality’ management (QM) targets/improves BizOps constraint.
Summary
Management Control (Mgmt-Ctrl) is a leadership obligation to serve the organization by verifying that operational requirements are met, and operational objectives are consistently achieved through the continual improvement of operational constraint. Mgmt-Ctrl, Inc. offers a systemic approach for operational ‘quality’ to ensure management control over the establishment of effectively efficient business for operational excellence (OpEx).
