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Managing enterprises better in the 21st century


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This short article lsits a set of business management controls required to manage better a 21st century organization as well as a list of resources that contain more details on all these management controls

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Managing enterprises better in the 21st century

  1. 1. Managing enterprises better in the 21st century By John KYRIAZOGLOU, CICA, B.A (Hon.) December 2016
  2. 2. Managing enterprises better in the 21st century By John Kyriazoglou 1. Introduction According to various sources1 ‘management control’ is a management function aimed at achieving defined goals within an established timetable, and usually understood to have three components: (1) Setting standards, (2) Measuring actual performance, and (3) Taking corrective action. In practical business terms, management controls, in a private company or public organizational environment, are used daily by managers and employees to accomplish the identified objectives of an organization (private company, public organization, or business entity, called ‘enterprise’ in this article). Simply put, management controls are the operational methods that enable work to proceed as expected. Management is responsible for establishing and maintaining the business management control environment. Auditors play a role in a system of internal controls by performing evaluations and making recommendations for improved controls. Furthermore, every employee plays a role in either strengthening or weakening the specific company’s internal business management control system. Therefore, all employees need to be aware of the concept and purpose of internal business management controls. How many, of these business management controls, however, does an enterprise need? 2. List of business management controls An indicative list of business management controls required to operate a business organization more effectively and efficiently include: 1. Business Management Controls Framework 2. Business Management Controls System Manual 3. Charters for the board of directors, for corporate committees (Audit, Risk, Benefits and Personnel, Information Technology, Financial Issues, and Business Continuity, etc.) 4. Development and implementation of corporate policies (for Financial Accounting, Customer Relations, Fraud and Theft, Community Relations, Health and Safety, and Environment Management, for Performance Management, Internal Audit, Risk Management, Business Continuity, Compliance, IT Sales, Production, Supply Chain, Logistics, Warehouse Control, etc.) 5. Departmental Terms of Reference 6. Corporate Policies and Procedures Manual 7. Files, Documents and Records Management Procedures 8. Confidential Information Release Procedures
  3. 3. 9. Management Reporting Procedures 10. Asset Protection Procedures 11. Legal Procedures (for the operation of the organization as a legal entity) 12. Administrative office controls including Physical Security Controls, Mail Controls, EDI Controls, Facsimile Transmission Controls, daily activities controls, Forms Register, etc. 13. Human resource management controls including: Human Rights Policy, Benefits and Personnel Committee, Job Descriptions, Employee Management Policies and Procedures Handbook , HR Hiring and Dismissal System, etc. 14. Segregation of Duties controls 15. Rick and Compliance controls including Risk Management Action Plan, Risk Register, Risk Evaluation Methodology, Compliance Program, Compliance Action Plan, etc. 16. Business Strategic Plan 17. Financial Management Responsibility Controls 18. Financial Policies and Procedures Manual 19. Budget controls) 20. Financial Performance Controls 21. Customers Sales and Production Controls 22. Purchasing Management Controls 23. Production Operations Policies and Procedures Manual 24. Warehouse Management Controls 25. Project Management Controls 26. Manufacturing/Services Management Controls 27. Standardization Controls 28. Production Performance Controls 29. IT Governance Controls (IT Management Responsibility Controls, Information Technology (IT) Policy, IT Asset Controls, IT Governance Standards, Policies and Procedures, IT Strategic Controls, IT Security Controls, etc.) 30. Business Data Management Controls 3. Conclusion A system of effective business management controls is fundamental to the safe and sound management of all types and sizes of enterprises. Effective internal controls help companies and organizations protect and enhance shareholders’ value and reduce the possibility of unexpected losses or damage to their reputation. Proper understanding and implementation of the designed and implemented business management controls will ensure better management and oversight to avoid any strategic and operational weaknesses that could result in fraud, waste, abuse, or mismanagement.
  4. 4. 4. End Notes 1. For more details, see: 1.1. 1.2. 1.3. 5. Further resources For more details on business management controls in all enterprise functions, see the books authored by John Kyriazoglou and published as indicated below: 1. Book ‘IT Strategic & Operational Controls’, 2010, IT Governance, U.K. 2. Book ‘Business Management Controls: A Guide’, 2012, IT Governance U.K. 3. Book ‘Business Management Controls: Toolkit’, 2012, IT Governance U.K. 4. Book ‘IT-Business Alignment’ (Parts 1 & 2), 2012, 5. Book ‘How to improve your company’s performance’, 2013, 6. Book ‘How to Improve Your Production’ (Parts 1 & 2), 2013, 7. Book ‘Managing your SME more effectively’ (Parts 1 & 2), 2013, 8. Book ‘How to Improve Your Workplace Wellness’, 2015, 9. Book ‘DATA PROTECTION AND PRIVACY MANAGEMENT SYSTEM’ (DATA PROTECTION AND PRIVACY GUIDE – VOL I), Publisher: 2017. 10. Book ‘DP&P STRATEGIES, POLICIES AND PLANS’ (DATA PROTECTION AND PRIVACY GUIDE – VOL II), Publisher: 2017. 11. Book ‘DATA PROTECTION IMPACT ASSESSMENT’ (DATA PROTECTION AND PRIVACY GUIDE – VOL III), Publisher: 2017. 12. Book ‘DATA PROTECTION SPECIALIZED CONTROLS’ (DATA PROTECTION AND PRIVACY GUIDE – VOL IV), Publisher: 2017. 13. Book ‘SECURITY AND DATA PRIVACY AUDIT QUESTIONNAIRES’ (DATA PROTECTION AND PRIVACY GUIDE – VOL V), Publisher: 2017.