How to Make an Efficient Control of the Processes of my Company?
In the path that must be traveled to control the processes of a company, several aspects must be considered. With control, the company will be able to become a more effective, efficient, and productive organization, destined to achieve any objective similar to that of growing and being prosperous in the market.
Control, as well as coordination, planning, and direction, is one of the four main functions of the administration of any type of company, be it an SME or a large multinational company.
The literature of the area offers a large amount of information about the control mechanisms that can be applied in organizations to determine whether or not it is efficient in its management, however, it should not be seen as a strict application guide or as a bible. that must be followed step by step to bring it to success.
On the contrary, they are elements that must be considered from the point of view of the organization itself, that is, they are aspects that must be considered individually or in combination to contribute to the process of improving its efficiency.
Importance of efficient control
The control can be seen from two angles, the senior management level must control that the entire operation of the company goes according to the general objectives that have been set, that is, control that the strategic direction is effective.
On the other hand, at the middle management level, control refers to verifying that the specific goals and operating indicators are achieved through the operating personnel.
To control that the activities are carried out, two basic but important activities must be attended to:
- Identify if there are deviations between planning and execution.
- Establish corrective mechanisms to execute the objectives as planned.
In other words, the objective of the control function in any company is to anticipate errors and correct them.
How to perform a control efficiently?
To carry out the control function successfully, some key tools can be applied to bring the company to proper management and turn its potential into a competitive advantage.
Some of these keys, useful for both large companies and SMEs, are the clear and measurable formulation of business objectives, management and monitoring of the market and customers, control of expenses while minimizing debts.
The simple fact of developing these key activities in the start-up of the business will greatly facilitate the path to business success, however, it will not eliminate all the obstacles that arise, so it is always necessary to be alert.
Stages to carry out efficient control
To exercise adequate control of the activities of the company, it is important to consider the unique aspect of each company and the appropriate actions for each one of them according to their characteristics, although all this is relative, some stages can be considered that may be common to all the organizations, whatever their type.
The first thing to do is establish a standard, the standard that is considered normal in production, and which will be the point with which to compare the performance or execution of activities.
If the standards are met, the standard is met and the objective is considered achieved; on the contrary, if the standard of comparison is not reached, it is considered that a deviation from the norm has occurred and must be corrected to resume the appropriate activity.
- At the stage during which normal production rates are established, it is important to formulate them carefully, avoid errors, otherwise, the conclusions of the control reports would be inadequate, misadjusted, and out of focus, completely erroneous, negatively impacting the decision-making process. decisions.
- The next step should be to measure the activities and analyze the results of the execution. The review and comparison with the standard will indicate the path to take and in any case the possible causes that have caused a deviation in the production system.
- Once a deviation has been detected, the measures that lead to its elimination must be applied, it must always be considered that there may be at least two causes that may generate a deviation from the norm. One of them is that all the activities necessary to achieve the objective have not been carried out, the other is that all the activities have been carried out, but these were incorrect and must be reformulated.
When exercising the control function of a company, three types of techniques can be used: auditing, budget control, and the application of statistics.
Controlling a company requires:
- Establish realistic, feasible, clear, concrete, and measurable objectives.
- Plan the steps and the material, human and financial resources to achieve the goals.
- Control inventories and stocks to avoid potential losses, optimize resources and maximize business profits.
Are you already applying efficient control to your company’s processes? Leave your comments and contributions on the subject.