Business Study Notes

Preventing Crises in Business: Business Study Notes

During its development, a company faces various crises, manifestations of organizational disequilibrium, while the achievement of performance requires the search for balance. An appropriate diagnosis and the implementation of action plans to better control them can prevent these imbalances. Senior management can rely on the financial management control department to identify imbalances and propose appropriate corrective actions.

Identify sources of imbalance

The concept of equilibrium refers to the right combination of forces or elements. It is reached in successive stages. It gives the company the strength to adapt to the hazards of the environment.

Sources of organizational imbalance can come from:

  1. A lack of vision of leaders: without vision, a company can not register its action in the long term.
  2. An overall imbalance from a:
  3. policy too ambitious compared to the reality of the company (lack of means).
  4. policy that neglects the importance of interfaces and the time of maturation.
  5. supremacy of bureaucracy and stifling control the company.
  6. An imbalance in the representation of the different functions in the company. It is a question of identifying the function which is “stifled” by the others, neglected by the leaders, or not having enough means to assume its role.
  7. An imbalance related to the four pillars of the organization. Is the overall performance sought by the company at the service of its various stakeholders: sound financial management, satisfied customers, excellent processes, a climate conducive to human development and innovation?

Propose corrective actions

Achieving the organizational balance in the company:

  • goes through balancing at all levels of the organization through:
  • structuring with the implementation of procedures, controls, standards …
  • opening, empowerment and awareness processes.
  • is realized in and by the movement.
  • is reached in successive stages and supposes experiments.

The financial and management control department can help the other functions to understand their own imbalance and remedy it in order to fully participate in the various management actions of the company, by:

  • Finding the right weighting between the achievement of the objectives of the company and the development of the men who compose it.
  • Ensuring that structures, rules, people, social climate, processes, flows and means are oriented towards the defined policy and associated values: values, policies and strategies.
  • Knowing how to listen to the different dimensions that make up the company.

In order to generate a change in practices, the financial and management control department must promote management dialogue, be attentive, demonstrate pedagogy, and co-build the management system with the operational players. Learn more about such business terms by visiting Business Study Notes. Business Study Notes is all about business terms, business education, and tips and tricks, especially for entrepreneurs it is a great platform.