MANAGEMENT CONTROL SYSTEM

MANAGEMENT CONTROL SYSTEM

FOR STRATEGIC INTEGRATION

INTRODUCTION

On the Cuban company are triggering a series of demands from the actual development environment, given by:

1. Decree Law 187/98 General basis of enterprise improvement, seeking continuous improvement of the company.

February. Resolution No.297 - 2003 of the Ministry of Finance and Prices , which is now an overpass internal control as referred to in the Decree Law 187/98 General Terms of Business Improvement , because it expands the concept beyond economic-financial terms and raises the control as a management function that is performed throughout the organization and at all levels associated with the scope of the business strategy , focusing on the process of organizing and taking into account the skills, both organizational and each post work ; also introduces the management of risks associated with the implementation of the business strategy.

3. NC ISO 9001 - . 20013 which require that business processes are identified and documented.

4. Resolution referred to the Ministry of Labor raises human capital working with matrices of labor skills.

5. Resolution 013/ 03 of the MAC also referred to internal control.

6. Joint resolution MES -MEP for the introduction of the strategic direction and management by objectives.

The problem that arises is the lack of integration in the organization of all these requirements , so that the work of a reinforced work with the other, making real working system for the implementation of the strategy outlined . Research in the Cuban business practice show that progress has been made in the introduction of management by objectives and strategic direction but still shows that the functions are performed within the borders of each department, operational action plans insufficiently coordinated with the overall objectives of the company, the urgency of daily travels strategic , marked tendency to functional management and short-termism that leads to obtaining low impact in terms of sustainable outcomes , poor definition and specification of objectives are not measurable , short-term objectives or are based on a long- or medium-term , are not challenging , are set by top management without informing those involved , not the objectives are derived for all members of the organization is not controlled or assess the degree of compliance with the objectives , with little link individual performance. Hence, this paper raises objective : To design and validate a model of management control to achieve integration between the processes of formulation, implementation and strategic control to raise the level of efficiency and effectiveness of the Cuban company .

DEVELOPMENT

A control model of strategic management (Figure 1), which is based on methodologically is proposed:

• System approach to enable the organization to adapt to the changing environment .

• Process development strategy based on the concept of Balanced Scorecard , Kaplan and Norton.5 -7

• The functions of the administrative cycle management ( planning , organizing, leading and control) and the system of strategic, tactical and operational decisions .

• The platform to comprehensively manage the process of change in companies posed in reference 8 .

• The theory of strategic integration of American Consultants Kenneth Cloke and Joan Goldsmith, conceptualized for the conditions of Cuba and staffed by a group of authors CETDIR strategic direction.

Qualities model

• The foundation of the design is a system of interlinked maps strategic objectives , processes, and personal risk , which are integrated on the basis of cause-effect relationships , providing dynamic and proactive process management strategic .

• Integrate risk management to strategic management process , allowing managing uncertainty , making more strategic model .

• It is based on the analysis of cross-functional processes and continuous improvement.

• Proposes the integration of personal skills to strategic management process, promoting the binding of improvement with continuous learning programs and individual development.

Assumptions of the model

• Existence of strategic planning in the organization.

• Existence of a computer network.

• Commitment of senior management, empowered workers, equivalent to the delegation of decision-making and leadership.

• Attitude and aptitude for change.

• conducive to teamwork Conditions.

• key business processes identified and documented.

Principles of the model

• consider the cause-effect holistically throughout the system making: Strategic and operational.

• It is based on the cross-functional approach or process (regardless of departmental and functional boundaries of the company).

• It is conceived as a process of continuous improvement based on teamwork.

• The learning needs of workers as the main component of business management, arise in the process of change, running training through action training.

• The needs are the beginning and end the process: From identification to your satisfaction.

• It is based on the integration of strategic management with risk management, process management and competency management, as shown in Figure 2.

1. This scheme can account for the different structural levels of the organization. company, strategic business unit, process and strategic work group or workplace level. Thus, cause-effect relationship links between them, ie, strategic objectives, risk prevention, the development of skills and procedures in the workplace level are presented contribute to meeting the objectives of the processes, and these in turn the fulfillment of the strategic objectives of the SBU and these the Company.

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