ACCA P5 Advance Performance Management
Not surprisingly, planning and control are inter-related to each other.
Not surprisingly, planning and control are inter-related to each other.
Planning refers to sets of strategies that focus on:
“what?”, “how?”, “where?” and “when?” an organisation intends to undertake its
agreed objectives. It defines CSF’s at executive level and KPI’s at operational
level of an organisation.
Types of planning:
Ø
Strategic planning – overview of entire business
long term planning – at executive level –focus on minimization of
diversification gap – strategic benchmark – Identifies Critical Success Factors
o
Vision – Where company wants to be in long run
o
Mission - Outline broad direction for organisation
o
Values - Guide for promoting organisational culture
Ø
Tactical planning - medium term planning – at
managerial level – focus on minimization of expansion gap – functional
benchmark – Identifies Key Performance Indicators
o
Medium term goals – focus on performance
indicators and ratios
o
Budgeting – Budgetary planning
o
Resource(7M’s) Planning – includes marketing,
information and managerial planning
Ø
Operational planning - short term / day to day
planning – at operational staff and
supervision level – focus on minimization of efficiency gap – operational
benchmark – Sets targets for Performance Indicators
o
One off plan – for not repeating task
o
Ongoing plan – for daily repetitive tasks - policy,
rules and procedures
Control is concerned with monitoring the achievement of
objectives and suggesting corrective action. Control mechanisms and the
monitoring processes are activities undertaken to achieve target performance /
objectives. It monitors the implementation of strategies at executive level and
resource management to reach the target at operational level of an
organisation.
Types of control:
Ø
Strategic control –control over
situational/strategic analysis, strategic choice and strategic implementation –
long term – strategic benchmark
Ø
Tactical control – Budgetary control and control
over the resources – medium term – functional benchmark
Ø
Operational control – Concerned with management
of assets and resources in daily –
operation – short term – operational benchmark
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