SYNERGISTIC MANAGEMENT CONTROL SYSTEMS

By Ron Travis Sr.

AuthorHouse

Copyright © 2010 Ron Travis Sr.
All right reserved.
ISBN: 978-1-4520-0922-3

Contents

ABOUT THE AUTHOR..................................................................................vPreface...........................................................................................xi1. MANAGEMENT TRAINING............................................................................12. MANAGEMENT CONTROL SYSTEMS.....................................................................373. PROBLEM SOLVING - DYNAMIC DECISIONS - GOALS ACHIEVED...........................................634. CORPORATE PHILOSOPHY - OVERALL GOALS - ACQUISITIONS............................................815. ECONOMY........................................................................................1016. NATIONAL DEBT..................................................................................1217. FINANCIAL STATEMENTS - GENERAL LEDGER - FILING SYSTEM..........................................1318. ANNUAL BUDGET - LONG-RANGE PLAN................................................................1499. FEEDBACK SYSTEMS - RECONCILIATIONS - VARIANCE ANALYSIS - DUE DATES.............................15910. INTERNAL AUDITS - OPERATIONAL AUDITS - COMPUTERS - TAXES - EXTERNAL AUDIT.....................17711. CASH - SECURITIES - INVESTMENTS...............................................................20512. RECEIVABLES - CREDIT MANAGEMENT...............................................................21913. INVENTORY.....................................................................................25114. OTHER ASSETS - OTHER LIABILITIES..............................................................27115. FIXED ASSETS - DEPRECIATION - MAINTENANCE - PROPERTY TAXES....................................28316. ACCOUNTS PAYABLE - DEBT - EQUITY..............................................................29117. SALES.........................................................................................30918. COST OF SALES.................................................................................33719. PERSONNEL - PENSIONS - PAYROLL................................................................36520. SAFETY - ENVIRONMENTAL - INSURANCE............................................................37921. TRANSPORATION - WAREHOUSING - SHIPPING........................................................43522. ADMINISTRATIVE & SELLING EXPENSES.............................................................453Epilogue..........................................................................................457

Chapter One

MANAGEMENT TRAINING

"Practice lifelong learning in every area of your life, and especially in the area you plan to pursue as your career"

"The participative style of management, with positive reinforcement, is always better than the authoritative style, with constant reprimands"

No management control system will work unless the division managers, departmental supervisors, and cost center lead men and women buy into the system. That is where dynamic management skills come into play, as you learn, and then teach and motivate the supervisors in periodic meetings and seminars.

PRINCIPLES FOR INDIVIDUAL BUSINESS SUCCESS

I have witnessed companies that violate the management principles discussed in this book, and still appear to be successful. I have now lived long enough to see these same companies suffer, because they ignored basic principles used by companies with a long history of consistent performance.

We tend to view current material success, or position in life, as equivalent to wisdom and expert knowledge. The problem with that premise is that fame is fleeting, and much damage and influence can be done by people that company owners, or the media, are holding out as the latest and greatest. I have endeavored to follow the principles in this book during my career. They have also been taught to many other people who have enjoyed successful business careers, and worthwhile personal lives. I commend them to you for your consideration starting with principles for your personal success:

Strive for excellence in everything you do.

Ignore negative critics, unless you know they love you, and that they provide 5 times more positive reinforcement than they do constructive criticism.

Stand up with confidence for what you believe in, even if you are all alone on an issue. Expect only about five percent of other people to support your position.

Set long-term goals in every area, for nine to fifteen years out.

Set medium-term goals, in three-year increments, that lead to your long-term goals.

Set short-term goals for one to three years out.

Prepare financial budgets in detail for one year, in monthly increments. Also project highlights of the financial budget for longer periods.

Develop plans and timetables for project implementation and periodic report preparation.

Develop a financial and management system for controlling: sales - material cost - manufacturing costs - labor costs - warehouse and shipping costs - transportation costs - and overhead.

Provide for management feedback that is consistent between departments, to compare actual performance to the plan.

Be firm, but fair, in demanding compliance with procedures and performance goals.

Make corrective action and adjustments as soon as possible, and objectively, based on an honest analysis of feedback.

Surround yourself with positive and capable people with integrity. Avoid negative people because they will only drag you down.

Never compromise doing a job right just to save money, or meet a deadline. In the long-run, people will only remember the quality of the job. Shortcuts will come back to bite you; especially in the areas of quality, environmental, or safety.

Enjoy the process, as you move toward your goals. Keep the overall goals in mind. Then, with the knowledge that you are on the right path, concentrate on the job at hand.

Learn from failures and setbacks; make corrections and adjustments to your plans, and then move on. Don't waste time whining or making excuses.

Do more than just what is required, to leave you with a margin of safety.

Do all you can to prepare to compete, and then play hard and fair. Hard work is the only way to obtain, and sustain, confidence and excellence.

Using golf analogies: understand your overall swing, or goals - study the cause and effect - and visualize the ball flight and roll after it lands. This will give you the big picture while you work on the fundamentals and individual pieces. Be patient with your own personal progress, and keep practicing. Your repeatable swing, and management abilities, will improve with common sense and intuition. Maintain your confidence, and a positive mental attitude under pressure. Keep your eye on the ball, and have a standard pre-shot routine with an emphasis on fundamental principles.

Celebrate and remember your successes, with pictures and other aids to visualization. This will keep your goals and past successes before you, and build confidence, fire, momentum, and passion.

Never consider defeat as an...