Management control is an indispensable activity for any business. Especially for SMEs, obtaining constant feedback on company operations can be a fundamental possibility to improve their performance.
But what is management control or directional control?
It is an operating system that allows the company to obtain feedback on its work, prospects and market objectives. It is an essential tool for identifying the most profitable sectors of the business and for improving the less performing ones. The person who - in most cases - is responsible for carrying out the control at a technical level is called the “controller”. In addition, many companies use specific management software that can simplify the performance of directional control.
Why is management control important?
Because it is an activity capable of analyzing economic resources and production factors, ensuring the use of these resources in the most appropriate way for the purpose of earning and achieving operational objectives. Although not mandatory by law, management control responds to important internal needs. In fact, within a company, data can come from any production environment. Directional control aims to collect and analyze these data, making them understandable in order to make winning decisions for the business.
A well-executed management control is able not only to optimize the management of all company resources, but also to improve the marketing and sales strategies of the business in order to increase its income.
