How to improve your business control
Enterprise control is the ability to manage and monitor an organization's performance in relation to its goals and objectives. Enterprise control helps ensure that the company is operating efficiently and ethically, and is able to adapt to changing circumstances and opportunities.
Improving business control can bring several benefits, such as:
- Increased profitability and growth
- Reduction of costs and risks
- Increased customer satisfaction and loyalty
- Greater employee engagement and productivity
- Strengthening reputation and trust
However, maintaining control of the business is not simple, as it requires a clear vision, a strong governance system, robust internal control and a culture of continuous improvement.
Here are some steps to better control your business:
1. Determine your vision and strategy. Your vision is the long-term aspiration for your organization, and your strategy is the plan to achieve that goal. Have a clear vision and strategy to align your actions, resources and decisions with your desired goals. Furthermore, the defined vision and strategies will help you communicate your objective and orientation to all audiences involved in the business, such as customers, employees, investors, regulatory bodies and society.
2. Establish your governance system. Your governance system is the set of roles, responsibilities, policies, procedures and practices that define how your organization is directed and controlled. It includes the governing body (such as the board of directors or management committee), the management team, and internal and external auditors. Your governance system must ensure that the organization complies with relevant laws and regulations, follows ethical standards, and meets stakeholder expectations.
3. Implement your internal control system Your internal control system is the process by which you manage and mitigate risks that may affect the achievement of your objectives. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring. Your internal control system must be designed according to the nature, size, complexity and risk profile of your organization. It must also be integrated into your governance system and aligned with your vision and strategy.
4. Monitor and evaluate your performance. You must constantly monitor and track your performance against your objectives, using relevant performance indicators. It must also evaluate the effectiveness of the governance and internal control system, using internal audits, external audits or other assurance methods. The results of monitoring and evaluation allow you to identify strengths, weaknesses, opportunities and threats to your organization.
5. Always learn and improve. You must encourage a culture of learning and improvement in your organization, encouraging feedback, innovation, collaboration and problem solving. Additionally, you should seek best practices and references from other organizations in your sector or industry, or from other sources of knowledge and inspiration. Leverage lessons learned from your experience and the experience of others to improve your vision, strategy, governance system, internal control and performance.
Luis Valini
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