Management Control Programme

Management Control Programme presents strategies to design and establish a model based on the control of management, allowing your company to determine the degree of compliance with the strategic plans and the monitoring of policies established for its continuing adjustment to changes and to ensure their survival.

Designing the control system structure

• Business model analysis and key factors to success.
• The control system structure.
• Identifying the centres of responsibility.>
• Operational cost, discretional cost, revenue, investment and profit centres.
• Decentralization and profit centres: transfer prices.

Responsibility centre evaluation criteria

• The differences between evaluating people and evaluating responsibility centres.
• Coherence between the decisions of responsibility centres and the goals of the company.

The costing structure

• Short term decision making.
• Revenues and differential costs.
• Relevant costs for decision making. Differential profit. Opportunity cost.
• Contribution margin analysis.
• Cost-volume-profit relationships. The profitability threshold, its uses and limitations.
• Product and pricing decisions.
• When it is convenient to eliminate, maintain or introduce products: making balanced decisions based on production capacity. How to deal with special orders: outsource or manufacture?
• Long term decision making.
• Gross margin as opposed to the contribution margin. Calculating the gross margin and the total cost of the product. Designing a costs system.Distribution of indirect costs.
• Activity based costing (ABC).
• Business processes analysis. Identifying activities. Implementing an ABC system. Activity based management.

Budgetary control as part of management control

• How to implement a budgetary system: the budget cycle.
• The budget as a planning and control tool.
• Using the budget as a control and coordination tool.
• The effects of the budget on the human factor: motivation and evaluation.
• Analysing budget deviations:Volume, efficiency and standard deviations.
• The limitations of using the budget.

Investment decisions

• Accounting criteria for analysing profitability: ROI and ROE.
• Improving profitability by means of working capital management
• Value creation criteria: EVA, MVA and CVA.
• Choosing investment projects: Pay Back, NPV and IRR. Relevant flows of an investment project.
• The relation between cash flow and the discount rate.

The Balanced Scoreboard.

• Setting up a Balanced Scoreboard based on the business model.
• Planning and control of financial and non-financial variables.
• Financial, customer, internal operations as well as learning and growth perspectives.
• Key aspects in their implementation:
• The importance of defining the strategic map.
• The organizational structure.
• How to select the Balanced Scoreboard indicators.
• The need for a climate that is favourable to its introduction.
• The reliability of distributed information.
• Real cases: what does its success or failure depend on?

Planning in highly uncertain environments

• The limitations of traditional control systems.
• How to overcome them
• Beliefs and values system. How does management control affect the corporate culture?
• Integral risk management.