1. Introduction.
The initial purpose of this article is to present the methodological steps for the development and implementation of management control systems in Venezuelan organizations based on an example applied to a higher education institution. This model initially starts from its integral definition, its main components, the premises that support it, its specific contribution and its operation in the institutional system for which it was designed.
This design intention can be graphically visualized as follows (see figure N ° 1)
integrated-model-of-management-control-micgFigure N ° 1 Basic Structure of the MICG.
2.Definition of the model
The integrated management control model is a set of processes that start from the main key areas within the organizational system, this in order to design indicators and standards based on the strategic plans and programs attempted by the organization. Such quantitative and qualitative indicators are measured by means of reliable performance indices managed by dashboards that guarantee effective monitoring for the fulfillment of the objectives of the system.
In essence, the MICG is a mechanism for measuring strategic attempts to effectively achieve organizational objectives. It constitutes the way by which strategies and resources are directed to the key aspects of organizational success and to the satisfaction of users within the fulfillment of the social parameters of development, both at the local and regional level, as well as at the national level.
Basic premises of the model
The model presented is based on the parameters of the following performance and conformation premises: See figure N ° 2
- Integrality: The MICG is based on a systemic vision of the organization and its interaction with the environment in which it operates. Exception: The principle of exception concentrates the basis for decision-making by controlling the essential or key processes that guarantee organizational success. Efficiency: It guarantees the fulfillment of the objectives in the rational use of resources. Flexibility: It is understood as the consideration of the changes that could occur as a result of the needs of the environment and the organization. Perfectibility:The model in question feeds on its errors, experience, ideas, innovations and criticisms made by the actors involved in the process, in order to refine and improve its effectiveness within and outside the organizational sphere. It is not an infallible model, but perfectible. Social responsibility: It considers its performance under the principle of management control of institutional areas that have to do with local, regional and national development. As is technology transfer, knowledge diversification, technical-social development, social relevance and accountability.
Figure N ° 2. MICG premises
3.Model components
The comprehensive management control model is structured according to the following processes or phases:
- Planning of the system to be controlled Identification of key areas, variables and critical processes Design of the indicator system Design of control instruments or instruments Design of the presentation of information Implementation of the control system
Planning of the system to control.
Any management control system requires objectives and strategies in accordance with the needs of the organization and its users. For this, the organization must have a planning system according to its needs and interests, for the purposes of the model in question, it is assumed that the strategic planning approach constitutes a successful scheme for the beginning of this proposal
Strategic diagnosis.
For the planning of the research system it is necessary to resort to the following phases:
- Strategic diagnosis Design of vision, mission, objectives and strategies Development of strategic programs and projects.
It consists of gathering the necessary information on the management processes, direction, structure, culture, among others, considered for the design of the management control to be applied.
The purpose of the strategic diagnosis is to know the fundamental processes and variables that require planning and control. It constitutes the identification of the obstacles that could prevent the fulfillment of the social objectives of the organization or unit from the internal and external point of view.
After the definition of a favorable climate for the project to be developed and after organizing it, it is necessary to apply the analysis instruments of the organizational system and the analysis of the internal and external managerial parameter proposed below:
- The organizational system and structure analysis instrument
It is an instrument that allows knowing the situation of the functional, procedural, structural improvement processes, the management and command system, the control system, the information systems and the evaluation processes of the research system as well as the culture organizational structure that identifies it. For its application, work groups in charge of collecting the information and distributing the instruments must be formed, then with the actors involved in filling them, meetings will be held in order to tabulate and discuss the results achieved in the study, as well as as the annex to existing or in-process reports. The interpretation of the results will be made on the basis of the percentage analysis of the data. After that,strengths and weaknesses will be classified according to their impact.
- Managerial parameter instrument
The purpose of the management parameters instrument is to measure attributes of management, technological development, human resources, and dissemination and promotion of the research process by the units of responsibility, in order to identify the weaknesses and strengths of the research system.
Internationally, we have the assessment of the environment through the external analysis tool which aims to identify the impact of variables, economic s, political, social, regulatory, etc. in the management of the research system.
Filling both instruments consists of assigning each attribute its weak or strong, threatening and / or opportune character, to later weigh the impact towards organizational success in terms of high, medium or low. The results of these matrices have to be evaluated in order to prioritize each of the weaknesses, strengths, threats and opportunities on the basis of a high or low key impact that affects the proper functioning of the institution.
The results achieved in this phase must be tabulated and presented in tables or statistical graphs that reflect absolute and relative values as part of a report to be presented by the working committees, after which they must be widely discussed in order to consolidate the information and be presented to the university community in the form of a document available internally. After this, and after having taken the considerations of any actor in the process, they must be prioritized and considered for the subsequent definition of the critical areas of the system.
As a result of crossing the previous instruments, the next step is to perform the SWOT matrix . The purpose of said matrix is to relate the opportunities and threats and the internal capacities of the organization (strengths and weaknesses) in order to outline strategies that allow to take advantage of the strengths, prevent the effect of weaknesses, use opportunities in time and anticipate effects of the threats.
To prepare the SWOT matrix it is necessary to complete the following steps:
- From the internal and external analysis matrices, the weaknesses, strengths, threats and opportunities should be prioritized based on their impact (medium and high) in order to highlight them using the following table:
| List the strengths | List weaknesses |
| Number the high-impact strengths: (DISCUSS AS A GROUP AND RANKING | Number the medium and high impact weaknesses:
(DISCUSS AS A GROUP AND RANKING) |
| Number and rank high-impact Threats | Number and rank high-impact opportunities |
| (Discuss as a group considering their current behavior and foreseeable trends in order to determine their current and future consequences on the research system ) | (Discuss as a group considering their current behavior and foreseeable trends in order to determine their current and future consequences on the research system ) |
- After evaluating the impact of each variable, the SWOT matrix must be filled in, attending to the following question with its respective format:
WHAT SHOULD WE DO TO ENHANCE OR TAKE ADVANTAGE OF STRENGTHS, REDUCE OR PREVENT THE EFFECT OF WEAKNESSES, SEIZE OPPORTUNITIES AND AVOID OR PREVENT EFFECTS OF THREATS? The answers to these questions are properly the strategies to be defined.
| OPPORTUNITIES | THREATS | |
| List the one with the greatest impact | List the one with the greatest impact | |
| STRENGTHS | STRATEGIES | STRATEGIES |
| List the one with the greatest impact | FO | FA |
| WEAKNESSES | STRATEGIES | STRATEGIES |
| List the one with the greatest impact | DO | GIVES |
After this, each of the success factors must be crossed according to the nomenclature of each strategy, making the possible analyzes and evaluating the possible combinations, namely:
F: O: = Offensive strategies.
FA = Defensive strategies
DO = Adaptive strategies.
DA = Survival strategies
Following this step, it will be necessary to rank them according to their importance applying instruments such as the Pareto principle, selection of strategies or hierarchy and priorities, among others, in order to select the best strategies and evaluate them according to their impact, feasibility, etc. Likewise, after having the strategies already defined by consensus and widely discussed, the strategies can be reassessed by applying techniques such as vulnerability analysis as appropriate.
Vision and mission design.
After having the system strategies, it is necessary to contemplate the long-term vision of what the research system would be in this case, for this it is advisable to evaluate the current vision and then redefine it if necessary. In both cases, to define it, the following question must be answered:
Where will we be in 3 or 5 years if everything turns out according to the stipulations. Where we want the research system to be between 3 to 5 years
Regarding the mission statement, it happens the same as the previous process, it answers the following question:
What is the reason for the existence of the research system which we derive
For both the vision and the mission, these must be formulated by the leaders of the research system together with the leaders of the organization (Board of Directors) as well as the secondary actors in this process, be they researchers, teachers, employees, etc.
Goal design
For the design of objectives after having made the diagnosis, formulated the strategies and developed the vision and mission, the next step is to design the objectives of the research system.
The objectives constitute a clear definition of goals and priorities to be met by top management. They are drafted jointly taking into account the critical and main areas of responsibility. The objectives constitute a commitment to improvement as a guide for planning and in accordance with the mission of the system. To do this, the following steps must be followed:
- They must come from the major objectives defined by the organization. Critical areas must be defined. For this, the diagnostic categories and the strategies defined in advance must be taken into account.
3. They must be established according to their long-term trajectory (Direction in which the research system should move).
4. They must be normative within a peremptory period (mostly one year).
- They must specify what must be done to achieve the regulatory objectives (task) It must guide actions aimed at growth, technological development, social relevance, social responsibility, quality, efficiency, productivity, customer service, financing, profitability, human development, institutional image, management, accountability, equipment and facilities, structure, direction, culture, organizational climate, organizational behavior, promotion and dissemination, inter-institutional exchange, management control, self-evaluation, publication, recognition, transfer, production of knowledge, among others. The following matrix shows an example that can better illustrate such a situation:
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
TARGET SYSTEM
|
Critical areas |
Path Objectives
(3 to 5 years) |
Normative objectives
1 year |
goals
homework |
||||||||
| PRESENT IN THE OPERATING PLAN | |||||||||||
| Management | Design the permanent strategic plan of the unit | Prepare the annual operating plan | Diagnose system needs | ||||||||
| Training | Reduce the little methodological training of the teacher | Reduce this process by 25%. | Hold at least 2 workshops and 1 symposium | ||||||||
| Relevance | Meet community needs | Develop lines of research with the community | Organize at least 2 communities around the process | ||||||||
| Evaluation | Design and apply a comprehensive evaluation model | Diagnose the evaluation system | Organize three work teams and two dialogue seminars. |
Strategy design
Every objective must have an action strategy that allows achieving its stipulations. In the administration there are several proposals for the design of strategies, among which are the strategic alternatives, the portfolio analysis and the growth vector analysis. For the present model, the use of the method of strategic alternatives is recommended as it is the simplest and most appropriate to the university context. In this sense, such a method will be adapted to the reality of the research system.
The first step in applying this method is to identify your career, normative, and task objectives. Then choose according to the following table, the most suitable way to fulfill the organizational mission in accordance with the objectives described. The purpose of this table is to serve as a guide for the selection of strategies to be carried out by the discussion groups. They must carry out rounds of ideas and proposals that will be widely studied in order to select those strategies that are viable, real to the financial situation and technically possible.
STRATEGIES SELECTION CHART
| STRATEGIES | VARIANTS OR ROADS |
|
Offensive strategies: They seek the consolidation of the institution in society |
Concentration: Seeks to specialize in a particular service or product in the environment. Example: Dedicate to technical advice in agriculture, chemistry, administration, etc.
Concentric diversification: Refers to diversify that service or product in the environment. Example: Agriculture (cattle, goats, etc.) Vertical integration: Refers to the aggregation of a product or process carried out by another entity. Eg: producing vaccines at the institution. Joint operations: Seeks the integration of operations that alone cannot attend to. Example: Agreements with laboratories or scientific institutions, etc. Innovation: Permanent search for new services or products. |
|
Defensive strategies: Seeks to anticipate obstacles that may prevent the performance of their duties. |
Reduction of sentences or services: Refers to a position in the face of the budget crisis.
Divestment: As an effect of a crisis, it consists of dedicating itself to the basic processes of its mission. Recovery: Enhance or save an area or basic process. Alliances: Seeks a temporary association with another entity to develop underserved areas. |
| Generic strategies: They refer to the consideration of all the basic and general areas of the unit or system. | |
| Concentric strategies: Refers to the consideration of the entire organization in its desire to meet its objectives. They can integrate other departments. |
Design of strategic projects.
After establishing the strategies, it is necessary to choose the strategic projects that will be part of the managerial actions to be achieved. For such a choice, the critical areas that require primary care should be prioritized according to the study carried out on the strategies.
Research system projects should focus on critical areas of the system and should be few but essential. They should also start from the parameters of weaknesses, strengths, opportunities, and threats outlined in previous points. The projects must guide the realization of real and concrete actions within a certain period, based on a need or obligation.
See following table:
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
Project prioritization matrix
| Mission | Critical areas | goals | Strategies for each objective | Prioritize | Projects |
| TO. | A.1. A.2.A.3 | Offensive
Defensive Generic Concentric |
Assess impact.
Define criteria |
We need?
We must? |
|
| B. | B.1.B.2.B.3 | ||||
| C. | C.1.C.2.C.3 |
For the research system as an example, the following projects can be developed:
- Methodological training. Development of a technological platform. Global research plan. Technology transfer. Research productivity, etc.
Each project must have the strategies that will support the fulfillment of the goals and those responsible for managing them. For this, the discussion groups must be brought together and for each proposed strategy to be evaluated its impact on the effective achievement of the path chosen for the estimated achievement of the objective to be met, it is pertinent to clarify that the chosen strategies must leave a margin of change according to behavior dynamic environment, so adaptive strategies must be considered, that is, within the planning process, the strategies chosen sometimes do not satisfy the requirements of the objectives, which is why it is necessary to create emergent or contingent strategies according to the requirement of the environment in its continuous change.
In view of the above, the following matrix allows the projects to be clearly grouped in relation to the main proposed objectives in terms of identifying each project with its objectives, strategies and centers of responsibility:
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
Matrix of strategic projects
| Project's name | goals | Strategies | Responsibility center |
| Project A
Project B |
to.
b. to. b. |
Name of units and / or persons in charge of the project
Name of units and / or persons in charge of the project |
Subsequent to the definition and structuring of the strategic projects of the unit or system, the operational programming or annual operational plan must be carried out. In this phase, the task objectives that will lead to the fulfillment of the project objective or normative objectives are outlined. For this see the following format:
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
OPERATIVE PLAN
| Project name:____________________________
___________________________________________ Responsibility Center: ______________________ |
Basic strategy: ___________________________________
_________________________________________________ Success indicator: _________________________________ |
TARGET: ____________________________________________________________________
| Activities | Weather | Goals | Responsable | Means | Budget item | |
| Start | End | |||||
To operationalize an objective, it is necessary to meet the following formulation requirements, as assumed by Beltrán (1999):
- Attribute: It is the one that identifies the goal Scale: Corresponds to the units of measurement in which the goal will be specified Status: It is the current value of the scale, the starting point Threshold: It is the desired value of the scale reachHorizon: Refers to the period in which the threshold is expected to be reached Start: Corresponds to the date when the horizon begins End: Corresponds to the expected completion for the achievement of the goal Responsible: Person who will be in charge of compliance the goals.
In a more concrete example, suppose that a corporate objective is to increase the methodological preparation of the teacher whose strategy chosen by the decision-makers is to design a teacher training program in the methodological area, its formulation would be as follows:
- Attribute: Methodological training. Scale: Teachers trained to investigate. Status: 5 Threshold: 100 Horizon: One year Start: January 2003 End: January 2004 Responsible: Prof. Juan Pérez. Head of educational projects
Adequacy of the budget to the projects.
A program without financial resources is a misconception of accomplishment, and certain financial resources without a program is wasteful. This corollary reaffirms the idea that every project should be assigned monetary units that allow it to meet the objectives set within a margin of importance.
By definition, resources are scarce, that is why it is necessary to prioritize and define critical areas of work that allow obtaining periodic results that reveal management effects that impact the direction of any university process. Accountability as a principle of the system guides such an accurate definition.
Once the estimated costs of each program have been processed in the annual management and the financing sources are estimated, the information is inserted into the budget. The steps to follow in this case have to do with the correspondence between the programmatic categories and the budget categories, with which it is feasible to identify, design and change the latter in order to correctly allocate resources. This activity must be done in accordance with the budget units and the managers in charge of distributing the amounts of the budget items.
Definition of critical areas
The critical management areas are those basic processes that require control for the success of the organization. These processes must be configured at the operating level of the system to be controlled, that is, within administrative systems there are three types of processes: regulation and adaptation processes (planning, objective goals, policies, management systems, budget, etc.) operational processes (teaching, research, extension, production and services) and support processes (human resources, legal consultancy, public relations, material and financial resources, etc.)
To identify the operational processes, it is necessary to know the transformation activities of the inputs for the production of the products or services that the system has as its purpose. These transformation activities are divided into three specific elements: The strategic processes of the organization (Teaching, research, extension, production and services), the basic processes of said strategic processes (for teaching: teaching-learning, curriculum, income, etc.), the procedures of each process, (for teaching: Preparation of teaching planning, withdrawal of subjects, enrollment, student evaluation, etc.) the activities and operations of each procedure. See figure N ° 3
Figure N ° 3. Structuring of strategic processes
Depending on the cases, the critical areas can relate several processes at the same time, that is, not only the operational ones, but some regulation or support that has such a need that it is essential to consider it. In a simple example, suppose that the basic processes of the strategic research process are: development of preliminary projects, allocation of budgets, monitoring of research lines, etc., but it turns out that based on a study of the system, the conclusion was reached Since it lacks plans, policies and direction, it is decided to consider that management is a critical control process, even though this is a regulatory process. As can be seen, due to each particular situation, the processes constitute a key element for the designation of the critical success factors.
For the identification of critical areas of the system, it is necessary to fulfill the following steps:
- a. List the administrative procedures carried out in the unit Classify the procedures in a common logical administrative function Categorize the functions in terms of need in the fulfillment of objectives, resource management and key decision making Graph the categories in a logical and systemic order. e. Compare them with the strategic objectives in order to reconcile what is (processes) and what is to be achieved (The critical areas come from the diagnosis carried out and the essential functional categories of the system to be improved).
Within the characteristics of the research system and according to the diagnosis made, the following critical areas to control can be proposed that will serve as a guide to the management control system:
- Research system management Project development Researcher development Information technology
Identification of the critical success factors for each area.
After identifying the objectives, strategies and critical areas, it is necessary to establish what it is intended to control in those areas. The management control is oriented to the critical processes of the organization, that is to say, the vital aspects that guarantee the success of the mission. Therefore, critical success factors constitute the strategic starting point of a good control system. These must be defined through group and participatory strategies; For the purposes of the following model, the success factors to consider are the following:
| SUCCESS FACTORS | DEFINITION | KEY ASPECT |
|
EFFECTIVENESS |
Compliance with research goals
Measures the percentage degree of fulfillment with respect to a goal |
· Adequacy of resources.
· Efectivity cost. · Cost-benefit |
|
EFFECTIVENESS |
Congruence between what was planned and the achievements obtained in the research system. Measures the ratio of effectiveness and efficiency as a percentage | Goals formulated
· Achievement of goals. · Achievements · Management |
|
OUTCOME/ RELEVANCE |
What is it investigated for? Measures the total achieved |
Relevance
Impact Opportunity |
|
PRODUCTIVITY |
Transformative capacity of the knowledge produced. Measures product cost ratio | Coverage
· Costs. Quality |
| RESOURCES AVAILABILITY | What is available and how much is required | · Humans
· Materials · Financial · |
Design of indicators.
After the specification of the critical areas, it is necessary to assign measurement indicators to each area in accordance with the goal set. An indicator is a point at which a simple or composite statistic that reflects some important feature of a system must be measurable, relevant and binding.
To recapitulate a little, these indicators should start from the strategic objectives (critical areas) and from the vital factors of success. For each case, a battery of general indicators is proposed below that can form part of the real control of any project in the research system.
| Critical area: Management | ||
| Success Factor | Indicators | Measure ratio |
| Effectiveness | Planning:
· Level of knowledge of vision. · Participation in the definition. |
-Total employees who know it / Total employees x 100.
-Total participating employees / total employeesx100 |
| Effectiveness | Goals:
· Achievement level Achievement of Goals |
-Total objectives achieved / objectives defined x 100.
-Total operational objectives achieved / objectives defined x 100 -Total tactical objectives achieved / Total objectives defined x 100. Total strategic objectives achieved / Total defined objectives x 100. -Total goals achieved / Total goals established x 100 -Total goals achieved / Total goals defined x 100 |
| Strategies:
· Implementation. |
-Total strategies implemented / total strategies x 100
-Total tactics implemented / total strategies 100 |
|
| Policies:
· Level of compliance |
-Total policies applied / Total policies established x 100.
-Total policies met / Total policies established x 100 |
|
| Programs:
Action level |
-Total actions carried out / Total actions programmed x 100
-Total programs carried out / Total programs planned x 100 |
|
| Efficiency | Organizational change:
Level of changes Motivation: Incentive level |
-Total diagnoses for change / Total diagnoses x 100
-Total measures of change undertaken / Total measures proposed x 100 -Total change evaluation / Total changes x 100. -Total incentives / Total work projects x100. -Total researchers who receive incentives / total researchers x 100. -Total incentives used / Total incentives x100. |
|
Work teams: Level of conformation |
-Total research staff / Total work teams x 100.
-Total work teams / Total research areas x 100. |
|
| Stress and conflict:
Process level |
-Total people with stress / Total people x 100
-Total conflicts / Total research areas x 100 |
|
| Innovation:
Creativity level |
-Total innovative projects / Total projects x 100.
-Total changes in products and services / Total products and services generated x 100. Total researchers involved in innovative projects / Total researchers x 100 |
|
| Effectiveness | Control:
Application level |
-Total strategic controls / Total controls x 100.
-Total tactical controls / Total controls x 100. -Total operating controls / Total controls x 100. -Total controls in substantive areas / Total research areas x 100 |
| Evaluation:
Application level Information systems: Design level |
-Total evaluation strategies / Total strategies x 100.
-Total evaluation programs executed / Total evaluation programs x 100 -Total computer systems / Total systems x 100. -Total administrative information systems / Total systems x 100. -Total prototypes developed / Total prototypes proposed x 100. -Total computer equipment needed / Total equipment x 100. |
| Critical area: Project formulation | ||
| Success Factor | Indicators | Measure ratio |
| Effectiveness
Relevance/ Results |
Lines of investigation
Design level Quality Relevance Opportunity |
-Total lines designed / Total research areas x 100
- Total lines executed / Total lines defined x 100. -Total rejected projects / Total projects x 100 -Total lines of research created by community need / Total lines of research. x100. -Total lines of research reformulated by social need / Total lines of research x 100. |
| Effectiveness | Development sequence | -Total of preliminary projects approved / Total of preliminary projects x 100.
-Total projects in execution / Total projects approved x 100. -Total rescheduled projects / Total projects x 100. - Total profitable projects / Total projects approved x 100. -Total economic evaluations of profitable projects / Total projects x 100. |
|
Productivity |
Budget and investment Investment profitability Production |
-Total funding for research / Total projects approved with funding.
-Total resources assigned / Total projects approved. -Total net profit x 100 / Permanent investment. -Total costs of project inputs / Total production cost. -Project production cost / Total items produced |
|
· Commercialization |
-Total marketing programs / Total programs x 100.
-Total commercial strategies / Total commercialization programs x 100. |
|
| Effectiveness | Promotion and dissemination | -Total published projects / Total projects x 100.
-Total projects presented to the media / Total projects approved x 100. |
| Relevance/
Results |
· Relationships with the community
Impact Relevance Adequacy |
-Total community projects carried out / Total projects x 100.
Total applications for inter-community projects / Total projects x 100. -Total projects for the solution of a community problem / Total project x 100. -Total social conjuncture projects approved / Total projects x 100. |
| Critical area: Researcher development | ||
| Success Factor | Indicators | Measure ratio |
| Resource availability
Productivity |
Number of researchers
· Academic level Level of methodological training. · Investigations carried out |
-Total research teachers / Total teachers x 100
-Total research teachers with fourth level / Total teachers x 100. -Total teachers with methodological training / Total teachers x 100. -Total investigations not promotions / Total teachers x 100. -Total investigations by area / Total teachers by area x 100 |
| · Work hours | -Total man hours worked / Total average man hours of investigation x 100. | |
|
Work products |
-Total articles published / Total teachers x 100.
-Total attendance at conferences / Total teachers x 100. -Total published books / Total teachers x 100 -Total papers presented / Total teachers x 100 |
|
| Effectiveness | Incentives | -Total premiums for investigative recognition / Total institutional recognition premiums x 100.
-Total scholarships for studies of research programs / Total scholarships for study x 100. -Total investigative productivity bonuses / Total institutional productivity bonuses x 100. -Total courses funded to researchers / Total courses funded in staff development programs x 100. |
| Recognitions | -Total recognition of researchers / Total institutional recognition x 100.
-Total Tributes to researchers / Total institutional tributes x 100. |
|
| Relevance / results | Relevance | -Total external research consultancies / Total institutional consultancies x 100.
-Total research courses taught to graduates / Total institutional courses x 100. |
| Critical area: Information technology | ||
| Success Factor | Indicators | Measure ratio |
| Effectiveness | Technological goals | -Total technological development goals for research / Total goals x 100.
-Total technological development strategies for research / Total strategies x 100. |
| Resource availability | · Availability of resources | -Total computers for research / Total computers x 100. |
| Networks and data | -Total systems in research networks / Total institutional networks x 100. | |
| Access to information | -Total Internet accounts for research / Total Internet accounts x 100.
-Total e-mail for researchers / Total institutional e-mail x 100. -Total research databases / Total institutional databases x 100. |
| Critical area: Financing | ||
| Success Factor | Indicators | Measure ratio |
| Resource availability | · Budget | -Total Bs. Assigned to research / Total budget x 100.
-Total required for investigation / Total assigned x 100. |
| Efficiency | · Expenses | -Total research expenses / Total institutional expenses x 100 |
| Effectiveness | Self-financing | -Total Bs. Produced by research projects / Total own income x 100. |
| Search for resources | -Total requests for external financing / Total projects x 100.
-Total resources obtained / Total resources requested x 100. |
Control instrument design.
After the indicator system is designed, a control panel should be assigned to each critical area that allows monitoring the progress of the performance of the management results, that is, an indicator with a historical condition, a standard or threshold and range.
- Historical condition: It means the real and current condition of the indicator. If it does not exist, a historical data collection strategy should be designed for each indicator as recently as possible, until a good historical data source is achieved. Sometimes figures cannot be found due to the non-existence of the measurement of the indicator designed in the new system, so in these cases, it starts with a zero state or does not exist (NE). Standard: Defines the value to be achieved (goal) or maintained in the control process. Rank: They are the minimum, average and maximum values allowed for the deviation and consequent correction of the behavior of an indicator and of a critical area of the system. They are usually established as follows: Minimum, Acceptable, Satisfactory, Outstanding, and maximum or vice versa (outstanding and acceptable) when you want to decrease values in the projects outlined.
For the design of thresholds or ranges, it is necessary to understand that these are defined by each organization according to its historical, real and potential characteristics of each area or critical factor, it is usually done in discussion groups by areas under an integrated vision with the objectives, goals and strategies to apply. They generally go through the following phases of realization: (see table 4)
- Identify, according to the experience of the organization and its members, the past, present and future behavior of the indicators in the form of an average or expected trend. It must be done with people who are knowledgeable about the area and the needs of the system to be controlled. Standards or ranges are sometimes implicit in the minds of the subjects who carry out routine activities within the process procedures. More systematic and scientific procedures such as construction of scenarios, trend graphs and statistical inference, prospective, The diagnosis of the system to control, in a valuable source for the design of standards and ranges since they reflect low or high values that are the starting source or comparison of what is you want to achieve, both in reduction,as in the increase of certain management indicators.
Table No. 4. Dashboard
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
| Critical Area: | |
| Objective: | |
| Strategy: | |
| Responsable: |
|
SUCCESS FACTOR |
INDICATOR |
STATUS | THRESHOLD | MINIMUM | YOU ACCEPT | SATISFIED. | ENVELOPES. | MAXIMUM |
Measurement instrument design
The definition of the threshold and the range of the scorecard leads to an important phase in the design of the management control system, such as the measurement phase of the variables of each indicator. This aims to establish the registration of the necessary information, the degree of frequency of the measurement, its presentation and those responsible for the process.
- Registration of the necessary information: It refers to where the basic information will be searched to be able to calculate the numerical and percentage relationships of each indicator (files, departments, memorial, books, minutes or start a search) It involves the organization of the people and the necessary instruments for data collection. Management control guides a culture of measurement so that system deviations can be corrected It is an activity that is carried out by groups interested in managing the process, there is no general rule for collecting and searching for primary and secondary data. Frequency: It consists of determining when and at what time it will be measured (daily, weekly, biweekly or monthly. Information presentation:It consists of the way of presenting the information for data collection, usually double entry tables and statistical tables are made. This activity depends on the team that carries out the process, for a clear application, see the following table N ° 5
Table N ° 5. Table for the analysis of the information record
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
| Critical Area: | |
| Objective: | |
| Strategy: | |
| Project's name: | |
| Responsible for the project: |
|
SUCCESS FACTOR |
INDICATOR |
Location Source |
Available | Frequency | Presentation | Responsable | |||
|
YES |
NO |
Daily | Weekly | Quinc. | |||||
After defining the status with respect to the source for each indicator and taking into account its presentation form, we proceed to design the formats where the real progress of the results will be expressed after the defined frequency, in the following table N 6 such a situation is displayed:
Table N ° 6. Balanced scorecard
Bolivarian Republic of Venezuela
Ministry of Higher Education
José Antonio Anzoátegui University Institute of Technology, Anaco Extension
Department of Investigation
| Critical Area: | |
| Objective: | |
| Strategy: | |
| Responsable: | |
| Measurement frequency: Biweekly Monthly |
| Results
Factors |
(f) TOTALS ** |
STATUS | THRESHOLD | MINIMUM | YOU ACCEPT | SATISFIED. | ENVELOPES. | MAXIMUM | Obtained value | Compliance. * | Deviation |
* It is calculated by dividing the value obtained by the target value (threshold).
* * It depends on the composition of each indicator in the way they are designed. It refers to absolute values obtained from the execution of the project in accordance with the frequency to be measured.
In the factors column, these indicate the elements involved in the specific composition of each indicator for each critical area and your project. Each project must contain indicators for each of the critical success factors in order to facilitate filling in the matrix and have the system's dashboards.
Information presentation techniques.
After having defined the behavior of each variable expressed in the previous table, it is necessary to graph the results in order to better visualize the behavior of the critical areas of the system to be controlled. Among the most used methods are graphs, tables, monitoring charts and control charts.
- The graphs: They constitute the descriptions of two or more variables within the considered indicator, they can be annual, monthly, weekly or daily; depending on the context in which they are applied and the degree of information required by the responsibility centers. These must be built for each indicator of each critical area or project, they must have their title and some legend if necessary (they can be columns, bars, lines, circular, scatter, etc.) See the following Tables: It is a table of double entry where percentage or absolute results are recorded around two fundamental variables. Like the graphs, they must have a title and a legend if required. See following example:
Behavior of key indicators of the research system of the José Antonio Anzoátegui University Institute of Technology, 1998-2002 period
| Indicator | 1998 | 1999 | 2000 | 2001 | 2002 |
| Project costs (in millions of Bs.) | fifty | 55 | 70 | 69 | 75 |
| Project efficiency | 75% | 65% | 85% | 91% | 85% |
| Productivity | 68% | 71% | 89% | 90% | 88% |
| Effectiveness of workshops held | 57% | 63% | 76% | 78% | 93% |
3. The follow-up graphs: These are graphs usually presented in the form of lines where comparisons of an indicator are represented based on its behavior over time. They are intended to express the time tracking through successive comparisons of years, months or weeks.
- Control charts: This type of chart schematically represents the result of an indicator around the achieved management range, that is, its values range from minimum, acceptable, satisfactory, outstanding and maximum. It is the representation of control table No. 21 and can be daily, weekly or monthly. Implementation of the control system
After the design of the previous phases, it is necessary to determine how it will be implemented, what resources will be needed and what cultural changes will condition the application of the management control system.
The design of control systems is not a mere technical exercise, it requires political, financial and organizational support to be successfully implemented in the current university system. The conditions for this process are concentrated in three fundamental lines to consider:
- System managers Adaptation of structure Cultural change. The directors of the institution: Within the current reality of the José Antonio Anzoátegui University Institute of Technology, Anaco Extension, the directors play a preponderant role in leading the change processes, since they have the power and the faculty to make decisions to put into practice the proposals for internal improvements. Specifically, they must assume a participatory, continuous and responsible position within the overall design of the system. Since the university community always awaits the initiatives of the leaders in the current climate of pessimism and resistance to change. For this, the following strategies are recommended:
- Open a climate of institutional discussion and political openness in basic management issues such as teaching, extension, research, services and production.Assume a decided and firm stance around the educational project to follow.Contribute to the participation of the academic sectors- management in the design and implementation phases of the control system Assume that the management control system is not another bureaucratic and tedious step Assume strategic planning as a value and a responsibility as a leader
From the point of planning, a work team made up of all the levels involved should be structured at the initiative of the process managers, attending to the following steps:
- Design the project for the implementation of the management control system taking into account its justification and importance, preliminary situation of the system (problematic), objectives to be met, strategies to apply, monitoring rates, responsibility centers, assigned tasks, dates of completion, methodology. process, available resources and execution period Prepare previous meetings to report on the intention to implement planning and control systems in the chosen area (These must be directed by the directors of the institution together with the process coordinators) Highlight the institutional need to carry out the process of study, design and application of the system addressing the failures presented supported by previous information on the situation of the same.Encourage participation and initial discussion of change ideas in order to identify possible support or resistance to the process Disseminate and promote internally and externally the change strategy to be followed.
- The adaptation of the structure: The current structure that directs the research system does not adapt to the dynamic demands of the proposed control system, given its centralist, not very participatory and highly bureaucratic nature, as was seen in the diagnosis of this study, Excessive sections of control and the low financial capacity of the system makes it practically dependent on the decisions of the Academic Deputy Director and the Research Commission.
In modern management, the adaptation of the organizational structure to the strategies proposed by the managerial level leads to support for the effort of the different academic-administrative units present in the institutional system. In view of this, it is suggested to create the Research and Development Sub-Directorate as a high-level administrative body whose purpose is to design joint policies for the integral development of the research system under managerial parameters in accordance with the needs of users and their environment.
This unit will be part of the Board of Directors as a decision-making body for the destiny of the system and will be directed by a Deputy Director assistant to the Directorate of the institute. Among its functions the following are proposed:
- Design jointly with an interdisciplinary support team, the strategic research plan in accordance with the institutional plan and the national educational plan Coordinate the budget programming that adjusts to the requirements of the research system together with the director of the institution Propose changes in the administrative structure according to the strategies developed by the unit. Develop strategies for group participation and training of work teams for the management of the research system. Design together with the corresponding units, the lines of research and development necessary to achieve institutional objectives Coordinate jointly with the management control division, the relevant activities for the design, implementation,evaluation and management of the comprehensive management control system Appoint the respective heads of the planning and management control and project and development divisions Design policies that include the promotion and dissemination of the institution's investigative work as well as promote strategies to support researchers and their social recognition Propose to the Board of Directors the creation of research institutes relevant to the needs of the environment Establish policies and strategies for the national and international inter-institutional relationship for the development and production of technologies and social knowledge. others determined by law and its regulations.Design policies that include the promotion and dissemination of the research work of the institution as well as promote strategies to support researchers and their social recognition Propose to the Board of Directors the creation of research institutes relevant to the needs of the environment Establish policies and strategies for the national and international inter-institutional relationship for the development and production of technologies and social knowledge, the others determined by the law and its regulations.Design policies that include the promotion and dissemination of the research work of the institution as well as promote strategies to support researchers and their social recognition Propose to the Board of Directors the creation of research institutes relevant to the needs of the environment Establish policies and strategies for the national and international inter-institutional relationship for the development and production of technologies and social knowledge, the others determined by the law and its regulations.Establish policies and strategies for the national and international inter-institutional relationship for the development and production of technologies and social knowledge, the rest determined by the law and its regulations.Establish policies and strategies for the national and international inter-institutional relationship for the development and production of technologies and social knowledge, the rest determined by the law and its regulations.
In conjunction with the creation of the research subdirectorate, the planning and management control divisions and the projects and development division were created.
The planning and management control division is an advisory unit to the investigation subdirectorate and will be in charge of the following functions and attributions:
- Advise the deputy director of research in the design of the strategic research plan in accordance with the institutional plan and the national development plan Design, implement and evaluate the integrated management control system Develop permanent diagnoses in order to detect needs and requirements of the research system in accordance with institutional, regional, national and international needs Create an integrated management information system to support decision-making on research Advise the division of projects in the activities inherent to its attributions Organize and direct the internal system of measurement and control of the critical management areas, the others determined by the law and its regulations.
The project and development division is an administrative unit dependent on the research deputy director and will have the following activities:
- Design, organize and manage the lines of research together with the head of the planning and management control unit and with the academic departments of the different institutional areas Organize, train and train work teams made up of teaching staff and Research under a matrix structure Design programs for the dissemination and promotion of the institution's research results Create comprehensive care programs for researchers Design programs for the recruitment, development and transfer of technologies Coordinate grants and development agreements with national and international entities productive areas of the internal areas, the rest determined by law and its regulations.
- The cultural change.
The implementation of the management control system of the investigation system requires a prior strategy of utmost importance for the application of the process. This strategy has to do with the situation of the planning culture little rooted in the institution and the general disbelief typical of this system that almost never has had a systematic attempt to rationalize resources in the basic areas of management.
Within this scope, the need to create a favorable climate for the application of the management system is a fundamental task for the gradual success of the system. This climate must be in accordance with the activities to be carried out by the managers seen in the previous points, but also, it is necessary to take this policy to the other processes of the system such as teaching, extension, services and postgraduate studies within a serious, systematic and responsible institutional academic project, whose participation of the members of the university community is a real and dynamic policy.
In more operational terms, the implementation of the management control system must have a plan that highlights the stages to be fulfilled as well as the material, financial and human resources necessary to achieve them. These stages were described throughout the model, basically focused on: Planning of the system to be controlled. Identification of critical areas, variables and processes, design of the indicator system, design of control instruments, design of the information presentation and implementation of the system.
For the latter, it is essential to design the relevant manuals for each phase that facilitate its applicability:
- For the diagnosis phase, it is vital to have a manual for the application, organization, tabulation, analysis and presentation of the results.For the phase of identification of critical areas, a manual should be prepared that highlights the basic methodology to identify the areas and critical success factors.For the indicators phase, an indicator manual will need to be structured on the basis of the type of indicator, its function within the system, its units of measurement, the form of calculation, the frequency of its measurement, the origin of the information (Information Manual), the thresholds and ranges as well as the users thereof. In the same way, it must contain the control instrument, the pertinent formats, the form of graphic presentation and its interpretation. For the implementation phase,A manual indicating the necessary organizational structure, the profiles of the subjects responsible for operating the system and the procedures for managing the control system will be an important point for its application.
Finally, it remains to be noted that the applicability of this proposal will be the next step for its validation, of course, the study and review stage has been completed by the specialists and the actors involved in its management.
5.References and bibliography
- ABAD, Dario: Management control, Colombia, Interconed Editores, 1997.AMAT, Joan: Management control (a management perspective) Barcelona, Spain, Edic. Gestión 2000, SA, 2000BLANCO, Illescas: Integrated management control, México, Limusa Noriega Editores SA, 2000 BELTRAN, Jesús: Management indicators (tools to achieve competitiveness) Colombia, 3R Editores, 1999 CASTILLO, Nelson and Gabriel Rodríguez: Elements for the monitoring and control of management, Caracas, Venezuelan Institute of Planning (IVEPLAN) 1997.DIEZ DE CASTRO, E.GARCIA DEL JUNCO, J.MARTÍN JIMENEZ F. AND PERIÁÑEZ CRISTÓBAL, R.: Administration and Direction,Spain, Editorial McGRAW-HILL / INTERAMERICANA, 2001FRANKLIN, E. Administrative Audit. México, Editorial McGRAW-HILL, 2001 MIKLOS, T. and TELLO, María Planeación Prospectiva. (A strategy for the design of the future) México, Limusa Noriega Editores, 2000. KAPLAN, Robert and David NORTON: How to use the Balanced Scorecard, Barcelona, Spain. Editorial Gestión 2000 SA, 2001_____________________________: Balanced scorecard, Barcelona, Spain, Editorial Gestión 2000 SA, 2000PEREZ, Juan F.: Control of business management, Spain, Editorial ESIC, 2000SERNA, Humberto: Gerencia Estratégica, Caracas, Ediciones Global SA, 2000
