Control, Monitoring
Category: Strategy Implementation
An on-going process
The control and monitoring process is a permanent and crucial one. Planning the development of a new strategy could be useless without a control of the follow-up and an adequate reporting of the work in progress. The monitoring has to be clearly organised, in terms of people and systems.
Actual versus expected performance
The operating and financial plans, once completed, represent the primary control device of the bank, for tracking actual performance throughout the year. By regularly comparing actual to expected results, managers can made midcourse analysis and, if necessary, adjustments.
Therefore, the key issue is to identify the elements that, if unchecked, could cause damages to the plan. The budget, for instance, is a good tool for a quantitative follow-up, with all the actual revenues and expenses being compared with what has been forecasted before. Variations must be noted, and important ones must be reported to the appropriate person.
Conditions of efficiency
Frequency of reporting is critical, to allow the adequate reaction from the right person.
The control process should not be too costly and cumbersome. A part of it will consist in automatic reports, but the final analysis is of a managerial responsibility.