Successful Implementation of Effective Project Controls Systems - Essay Example

Strategic Management Q1 Implementation controls are essential for assessing the need to change the overall strategy in accordance to any unexpected changes in the process of incremental actions. A developed strategic plan is put into action. This means assembling the necessary resources including people and money for smooth execution. The implementers should be competent enough to avoid unnecessary predicaments along the way. Fundamentally, the strategies are organized from top to bottom a priority list is vital. This ensures that the most crucial strategy gets a higher priority as opposed to one that is not of urgency (Bill, William & PE CCE, 2007). Running an advert for a new project is significant before embarking in the real project. Therefore, vital control measures play a major role. Again, if the implementation is not executed according to plan, the company will not attain its desired goals. Strategic surveillance is essential for observing events in and out of a business that have a high potential of affecting the strategy. This is done by carrying out market research, utilizing past information, attending business meetings and tracking social networking sites. When a small business is planning to establish a new project, it is important for it to analyze literature in the relevant field to avoid making the wrong decision (Stephen, Lakhani, Brown & Malmi, 2008). On the other hand, special alert control refers to a thorough and speedy reassessment of a company’s strategy following a sudden event. For example, when an investor acquires a company’s competitor, it demands for immediate reassessment of the strategy because the investor could be planning to position the competitor so that it can achieve a competitive advantage. Surveillance control only predicts on potential risks while special alert control works to correct the predicted occurrence. Implementation control ensures that any established strategy whether meets the expected threshold. Q2 Operational control and assessment are essential in every business organization. The operations determine the possible outcome in the end. This means that high operational cost will lead to lesser profits hence the need to incorporate time, budgets and success factors in operations control and evaluation. Operations management ensures that proper designing, planning and control of production process is attained so that the business targets are met (Pearce & Robinson, 2011). Budgets are essential in establishing whether the operations are going beyond the manageable levels. Budgets streamline the operations of an organization because all activities will be executed within the estimated cost. Exceeding the budget levels jeopardizes other operations leading to lower revenue generated (Florou, Stolikidis & Nikolaidis, 2011). Timing is also a critical aspect essential for operation controls and evaluation. Sticking to schedules ensure proper time management and higher productions. For example, planning, designing, implementation and evaluation fall on different times. This means that delaying planning will also delay implementation time. Inability to observe production period affects the distribution timing hence inconveniencing the suppliers and retailers. Other success factors like establishing a feasible niche, recruiting qualified personnel and employing the best technology are vital. Globalization influences business operations hence the need to integrate feasible technological features like electronic commerce. To meet such standards, every organization has to budget for it and procure the materials in a timely manner. It is illogical to install a new program when in the middle of production because it may hinder the process disrupting the flow of materials. Similarly, compliance fee is mandatory hence should be included in the budget to avoid straining other sectors of operation (Reider, 2000). Again, organizations that embrace corporate social responsibility may not meet this aspect if it fails to schedule and budget for it. Q3 Balanced score card is a methodology utilized in elimination of bias in any given organization. It ensures that all sectors of operation receive equal attention. It serves as a strategic management tool to keep track of the performances of employees while monitoring the outcomes of their actions in accordance to the mission statement of the organization. Balanced scorecard is explained in four aspects: financial, internal business, customer and innovation and learning. Financial perspective deals with the operational aspects of the organizations finically (Chavan, 2009). It points out the financial metrics utilized to attain success. This could mean cutting down on production costs with the aim of accruing more profits. Financial perspective involves analyzing the current with respect to previous ones and the activities that were funded. Higher spending should reflect increased activities as well as more profits. Customer perspective majorly focuses on satisfying the needs of the clients. To attain the best result on this perspective, a company has to establish how the customers perceive their organization. It also includes customer loyalty. This is possible by carrying out random survey and basing on the feedback from the clients. Internal business perspective considers the long-term goals of the company and the previous success as well as the factors affects efficiency and effectiveness of performances. The operational approaches should be viable enough to ensure maximum utilization of available resources. Another perspective is learning and innovation; it centers on employee development and establishment competitive strategies. To satisfy the employees, the company management has to facilitate their educational advancement, provide competitive remuneration packages and uphold promotions (Christesen, 2008). Therefore, balanced scorecard is essential in pointing out the risks that require immediate reinforcement. Q4 Incremental innovation is essential in every organization. Stagnating on the same program for long without any improvement may become irrelevant since various companies emerge. New entrants into the market imitate and improve what is already in the market. Therefore, existing organization should make sure they keep modifying their operation so that it can record more revenues and remain recognizable. Continuous improvement with CCC21 and Six Sigma is significant in achieving an incremental innovation. CCC21 (construction of cost competitiveness in the 21st century) is vital is cost reduction adventure. Multinational companies like Toyota have embraced the need for cost reduction by utilizing CCC21 (Lander, 2007). Between 2000 and 2003, Toyota managed to save approximately 1trillion yen. Cost reduction is possible when companies remain consistent and determined. Massive production is one way of cutting down on operational costs hence the excess money can be utilized in new programs. Six Sigma is appropriate tool for process improvement and quality control and management. Once an organization has received certification of quality management, the only thing they focus is growth that is possible through drastic innovation. Some critics argue that six sigma is not a good idea because quality operation for instance waste management is neglected by moist companies that put their energies on growth only (Shankar, 2010). To achieve an improved result, promoting a demand based operation, establishing a workable flow, identification of customer value and seeking perfection as well as plotting value stream are imperative. Proper utilization of resources enables low waste generation hence reduced operational cost and increased revenue. Q5 Incremental innovation refers making changes in the existing projects and projects. Fundamentally, the changes take place along a specific line of operation within a given firm. Incremental innovations means improving the existing product to ensure that it remains pertinent in the market (Hoonsopon & Ruenrom, 2012). On the other hand, breakthrough innovation entail establishment of new products and services that influence the creation of a new markets. They are a revolutionary change in the market and industry or firm. The general outcome of breakthrough innovations is increased customer gains as compared to current products in the market. When an organization develops a new product, it is obvious that it will satisfy demands of the customers that the existing products could not meet. Unlike incremental innovations, breakthrough innovations demand huge amounts of money since it is a completely different product. Advertisements and recruitment of new employees are essential. Several risks are associated with each of the innovation risks. Incremental innovation may encounter risks like inadequate coordination within the organization and poor time management. If little time is allocated for planning of the modification of the product, the outcome will be unsuccessful projects. Lack of qualified workforce to implement the project is an inevitable risk associated with incremental innovation because most organization does not budget on recruiting experienced personnel. Another risk is the inability to determine the performance of the project. Breakthrough innovation also possesses risks such as financial constraints since it is a new product in the market (Koen et al, 2010). Limited ideas on how to commercial the new product is apparent with breakthrough innovation. Q6 Entrepreneurship refers to a process of developing value by putting together various resources to make use of an opportunity. It mainly entails establishment of a new product in the market. Entrepreneurs take advantage of every opportunity to exploit their ideas. Opportunities arise from changing their operational environment and changing production patterns. On the other hand, entrepreneurship refers to exploitation of ideas and resources to create a new product within an existing organization (Klanecek & Antoncic, 2007). Intrapreneurs are considered assets to a given organization because they are behind most of their projects that add value and improve the performance. Entrepreneurs are responsible for their projects hence have the ability to customize to suit their future goals and source for funds on their own (Parker, 2010). The entrepreneurs have no control over their projects and depend on the organization they are working for funds and directions. Entrepreneurship is a tricky affair since it mandates proper market research carried out before making a final decision. Because it is a new project, establishing the target niche and clientele is significant. An individual who is in the process of establishing clothes has to ensure that the location of the store and the target customers are available. It is impractical to establish a store that deals with designer clothes yet it is located in the countryside where most of the people do not value fashion and expensive products. Entrepreneurship is easier to establish, for example, a banking institution may decide to initiate mobile banking by collaborating with mobile network providers. The institution will not need to conduct much research because almost all their customers will appreciate the idea. Even if they do not embrace, they will not undergo several losses than if it were a completely new product. References Bill Kraus, William E, PE,C.C.E. (2007). Successful implementation of effective project controls systems. Cost Engineering, 49(11), 3-4. Retrieved from http://search.proquest.com/docview/220452356?accountid=45049 Chavan, M. (2009). The balanced scorecard: A new challenge. The Journal of Management Development, 28(5), 393-406. doi:http://dx.doi.org/10.1108/02621710910955930 Christesen, D. A. (2008). The impact of balanced scorecard usage on organization performance. (Order No. 3302302, University of Minnesota). ProQuest Dissertations and Theses, , 109-n/a. Retrieved from http://search.proquest.com/docview/304595608?accountid=45049. (304595608). Florou, G., Stolikidis, G., & Nikolaidis, A. M. (2011). 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History, evolution, and future of process improvement: An examination of six sigma, lean, TOC, and TRIZ. (Order No. 1484870, California State University, Dominguez Hills). ProQuest Dissertations and Theses, , 103-n/a. Retrieved from http://search.proquest.com/docview/375500293?accountid=45049. (375500293). Stephen T.T. Teo, Lakhani, B., Brown, D., & Malmi, T. (2008). Strategic human resource management and knowledge workers. Management Research News, 31(9), 683-696. doi:http://dx.doi.org/10.1108/01409170810898572 Read More