Management Information

Management Information

At the centre of a “best practice” planning framework is a Value Chain Model that shows the relationship between activities, resources and outcomes for 'business as usual'. I.e. what is likely to happen if the organisation continues on its current course within the forecast business environment.  Its primary aim is to support the allocation of resources and provide an assessment of whether the resources allocated represent good value.  This is done by contrasting expenditure with activity and the results being achieved.

 In most organisations, the planning framework mirrors the organisation structure:  managers head up departments and sections;  managers develop plans and budgets reflecting the activities undertaken by the people in their departments;  and the planning and budgeting approach consolidates their plans and budgets.  Business processes, however, extend across departments and thus engage people working to departmental objectives that often conflict with what is necessary to optimise the value chain.

The key questions that the planning framework needs to address are:

?        Where and on what are resources currently deployed?

?        Are the current resources deployments efficient and effective?

?        Which resources need to be increased or decreased/reassigned in light of the forecast business environment?

?        Do current organisational responsibilities support or hinder best practice – i.e. does the current structure result in sub-optimisation?

 

Answering these and similar questions requires an analytical tool that links financial and operational data to the day to day activities of people in delivering the strategic objectives set for the organisation.

Download MVX as a Planning Tool to read the full article.

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Dr Pietro Micheli, Visiting Fellow on Operational Performance Management at Cranfield University, sets out the case for aligning Strategy Implementation objectives with what people do day to day.

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Successes in cost cutting erode with time. Here’s how to make them last.

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Thursday, 10 January 2013 08:54

The FDs' Dilemma

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The theme of the ICAEW FDs’ Conference in 2012 was The Many Hats Of The FD.

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Thursday, 06 December 2012 00:00

The Seven Hats of the FD

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The Seven Hats of the FD, according to the ICAEW, are:

  • Storyteller – creator of a clear narrative for internal and external audiences.
  • Co-pilot – partner to the CEO with a complementary skill set.
  • Magistrate – arbiter of disputes and enforcer of the law.
  • Consigliere – trusted counsel offering advice at the highest level.
  • Engineer – master of processes and systems; architect of business models.
  • Muse – promoter of fresh thinking and value-enhancing decisions.
  • Rescue service – identifier of problems and presenter of solutions.

Of particular interest to us from this daunting list of roles is that of Engineer – master of processes and systems;  architect of business models.

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As stated in a previous blog, Relevant Management Information is the combination of timely financial, operational and customer information that provides a manager with an understanding of how the part of the business for which he/she is responsible is performing and facilitates insights into how he/she can optimise performance.

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CPM expert, Michael Coveney, writes:  Now and again you come across a tool that makes you think – “Wow this is useful – I wonder why no one else has done this before?”

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Tuesday, 30 October 2012 15:40

Relevant Management Information

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Business Performance Improvement is dependent on Relevant Management Information

All businesses generate a great deal of information about their activities but not all managers have relevant management information. What is relevant management information?

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