Startup firms usually prefer to have freedom regarding managerial practices. Is it possible to design specific Management Control System which fit their needs?
I think it is easy to do that ,however we need to adopt cost befit analysis approach (CBA) before taking decision to do so .
For Startup it is important for us to know what field management system want to control ??? since the question is very broad. startup not different with other kind of business, need to create control for they management system, depend the need and important,... so need to clarify and find which areas need to control first...
I am doing research on the same topic. The main issue for startups is often liquidity / cash. So I think a management control system should focus on cash flow and working capital.
Two useful articles for you might be:
Mazzarol, T. (2014). Financial management in SMEs. Small Enterprise Research: The Journal of SEAANZ, 21(1), 2-13.
Jindrichovska, I. (2014). Financial management in SMEs. European Research Studies Journal, 16(4), 79-95.
Jindrichovska's article concludes with some very concrete advice regarding management control in SMB.
Good luck on your research:-)
Grethe Stave Thanks for your suggestions! I did my PhD on MCS in startups and I found that Mexican startups focus their MCS on organizational learning. The thing is that most of the mexican startups are financed by the government. Thus, entrepreneurs don't care a lot about cash, they try to institutionalize what they learn. It was a very surprising finding.
of course, it is preferred to have some management control systems for startups, or it is preferred to have a experienced person in charge of the system building process from its top management team
I guess there are plenty of articles could be available at the website.
It is possible specially designed management control systems are currently available, many supporting systems usually supported for startups
Yes, but time and resources are very limited so, I suggest to focus in:
1. Sales
2. Budget control
3. Weekly activities
Yes Sir You may design system of Performance (efficiency, Effective, Quality Control, Customer satisfaction). You may also evaluate Financial performance such as (Return on Investment ( ROI) and Net Present Value (NPV).
Very much possible and highly recommended to start early with some sort of management control system. This system should focus on the immediate issues around your financial burn rate. This burn rate should be tied to key milestones either in product development and testing and then customer targets. Other areas should include personnel (acquisition, targeted hires, turnover), and IP.
In a start up cash flow is the most important issue, which is not managed correctly can actually kill it. Having said this, it does not mean that you tighten the strings of the money bags. One has to ensure that the planning process should be done accurately to ensure that the completed cost of any activity does not overshoot the planned cost. This calls for effective project management, and deployment of monitoring and controlling tools. There is no fixed tool for all this in the context of a start up. They will need the support of experts to develop and deploy this.
It is necessary to to a Management Control System as it tells whether or not you are achieving your objectives.Even in a start up, there many risks that need to be addressed every day. That's why having a good Management Control System will contribute to reduce those risks and reach one 's objective.
Yes, it is possible. With time and resource limited, primary focus should be on cash and labor efficiency. Overtime, other aspects of inventory, sales, receipts and financial management can be focused on.
The Sigma Six model is worth a review in this context. Follow the link below for an overview
https://www.businessballs.com/performance-management/six-sigma-definitions-history-overview/
Yes it is and we have successfully done it since 1994 through our proprietary Integral Investing and company building approach (https://aqalgroup.com/integral-investing/). The best overall practices available are in my view a combination of Teal Organizations, Conscious Capitalism, and (in high-tech) Exponential Organization practices
Dans les startups, les entrepreneurs sont plutôt dans une approche effectuale, où face à un environnement trop incertain, ils ne se basent pas trop sur une planification à long terme. Mais un système de tableau de bord prospectif peut être très utile comme outil de contrôle de gestion.
This is a doctoral thesis on the subject matter available in web, pl chk,
https://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/4729/$FILE/dis4729.pdf
Yes its possible and various factors need to be put into consideration including and not limited to the industry of the start ups among other factors
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