Planning control and evaluation process:
Planning control and evaluation process is a "living document", and one that will give you a means of rating performance in key areas, critical for success. Metrics can be financial and non-financial. The financial will cover: sales targets and trends, profitability, ratio analysis (e.g., liquidity, return on capital employed, etc.). The non-financial will cover aspects such as: customer satisfaction, market share, innovation, complaint levels, benchmarking, etc. Usually there will be a mix of both sets of metrics.
The purpose of evaluation and control is threefold:
Targets are set to measure performance
Performance is monitored against targets
Variance analysis can flag where corrective action is needed
The control system should be a continuous loop, linked to information systems – with staff and customers being part of that loop.
The bottom line is that goals are vital, and because these goals are the result of a thorough planning process they will be of strategic value – moreover, they will be:
SMART: Specific, Measurable, Achievable, Relevant and Time bound.
first direct really take a use of planning control and evalutation process and it is very important to them because like any other business does first direct always wants to know the customer ratio their interest and want to know what they want, to do this they have to first make a plan of their business they try to acheive a certain target and later move on to their next one to do this they have to take two things on account such as non financial stuff their filled in surveys, number of customer complaints of telephone, webstie itself beside all this they also take a look on their competitors levels what have they done and what can first direct do to get more invovled to customer then them and stay ahed of competitors. they can also take a look on their financial accoutn such as how good is the business doing this year, how much profit has been earned have they acheived their current sales with all this it will help them a make a more stronger and better target for future which will contrbute in improvements getting more customers and making more profit.
Planning control and evaluation process is a "living document", and one that will give you a means of rating performance in key areas, critical for success. Metrics can be financial and non-financial. The financial will cover: sales targets and trends, profitability, ratio analysis (e.g., liquidity, return on capital employed, etc.). The non-financial will cover aspects such as: customer satisfaction, market share, innovation, complaint levels, benchmarking, etc. Usually there will be a mix of both sets of metrics.
The purpose of evaluation and control is threefold:
Targets are set to measure performance
Performance is monitored against targets
Variance analysis can flag where corrective action is needed
The control system should be a continuous loop, linked to information systems – with staff and customers being part of that loop.
The bottom line is that goals are vital, and because these goals are the result of a thorough planning process they will be of strategic value – moreover, they will be:
SMART: Specific, Measurable, Achievable, Relevant and Time bound.
first direct really take a use of planning control and evalutation process and it is very important to them because like any other business does first direct always wants to know the customer ratio their interest and want to know what they want, to do this they have to first make a plan of their business they try to acheive a certain target and later move on to their next one to do this they have to take two things on account such as non financial stuff their filled in surveys, number of customer complaints of telephone, webstie itself beside all this they also take a look on their competitors levels what have they done and what can first direct do to get more invovled to customer then them and stay ahed of competitors. they can also take a look on their financial accoutn such as how good is the business doing this year, how much profit has been earned have they acheived their current sales with all this it will help them a make a more stronger and better target for future which will contrbute in improvements getting more customers and making more profit.
PRINT!
Posted by: ebitnow.com | 01/14/2010 at 12:14 PM