Is it possible to design a specific Management Control System which fit startup needs?
In my personal opinion, a start-up can design a management control system that can meet their specific needs. As we all know, innovation in technology innovation is the main aspect of growth in the current economy globally. This is because it has opened up market opportunities and therefore many new segments of the market have come up, and entrepreneurs with evolving and new models of business are in the middle of it. This is what drew an interest in me to specifically study and analyze start-ups within the market segments which have commenced due to the innovation of technology.
First and foremost, I consider it generally important to define the management control system as the structure, it could be either the various components of the relationship or organizational, of the responsibility of the different structure within the business. In my presentation, outlining the measures of performance and how information moves within the various structures responsibly will greatly help to understand the concept. For instance, in a large and complex organization, like a production facility where car parts are created, the task is divided into several units. The management is therefore in charge of various organizational aspects organization, as well as the sub-units.
I would also like to bring out the fact that the management control systems should be introduced to a startup depending on their degree of commercial activity and product development. It is also vital to note that there exist huge differences between startups that are science-based which aim at completing the innovation’s technical development and place it onto the market and those that seek to come up with their chain of value to serve their model of business. I believe that this analysis can assist in characterizing the configurations of management control in startups, subject to correction for the fact that such small businesses are often run by a Finance Manager whose responsibility scope extends past the role of management control.
The various processes which MCS monitors and performs are looking essentially at the phases and generating the correct manner of handling the processes. This could thus include things such as budget monitoring, performance measurement of subordinates among others. Essentially, the initial characteristic concerns the MCS structure while the second one characteristic describes the processes. Most MCSs make use of financial metrics like accounting for evaluation purposes. This means that the business has to emphasize on financial measures, for instance, the number of sales made or how much it costs to get a new employee. It is rather obvious why the business prefers to use this basis. Measurement of performance with a real set of data, like an economic metric, is straightforward and easy. The management normally tells a lot concerning performance by comprehending the underlying economic factors of a particular behavior.
However, there are various non-financial factors as well. These are measured through other forms of feedback like surveys, and they involve things like product quality and customer satisfaction. The management can get to learn more, improve on planning, and develop control with the information that they receive from the customers directly. Another example of a non-financial MCS function is product quality. This is a vital tool for managers since it shows how some strategies of development are working. If products constantly break down, you as a manager can correct that by finding out where the quality is being compromised within the line of production.
I used Johns‘ reflective model because its reflection takes into consideration a wide standpoints range, and I as the reflector considers the effects of my actions on myself not just on others in respect of congruence with my values. From the presentation, learnt quite a lot. When you know about your systems, you can quickly notice problems. As a manager, you can easily reduce risks since you can notice challenges before turning into a disaster. The system can also provide benefits towards efficiency in the organization – you notice problems, align your strategies and make sure there is coordination between different units and departments. We all understand how difficult it is to be a manager, but an MCS reduces your workload.
I felt quite uncomfortable during the presentation. I have been making presentations for a while now but I still become nervous. I like it when I am nervous because it keeps me on toes. I enjoyed the fact that the listeners were giving me ample time to explain myself. However, I have discovered that the fear of being judged by the audience also draws back my confidence. Before now, I was not sure whether I have a confidence issue I need to address. I now know that I should know my stuff by understanding my presentation, practice for the presentation to sound more natural.
From the coursework, previously I thought my answer should be perfect. Ideally, this topic has made me accept the fact that there is no wrong or right answer. Also, it is okay to make some mistakes. It is possible to turn around a mistake during a presentation. Addressing this issue will make me more comfortable as I would not mind being judged. In future presentations, I will make sure not to have some of these issues affecting my presentation. If I was to do this presentation again, I would focus more on my audience by putting myself on less pressure and allow myself to be less anxious but more confident during my presentation. I will also do what works best for me and what makes me comfortable while on stage.
References
Biga, M., Guilly, B. (2011). A Taxonomy of the Early Growth of Belgian Start-ups. Journal of Small Business and Enterprise Development 18 (2): 194-218.
Gioia, D., Corley, K., Hamilton, A. (2013). Seeking Qualitative Rigor in Inductive Research: Notes on the Gioia Methodology. Organizational Research Methods 16 (1) : 15-31.