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Management Analysis

The term “management analysis” has many connotations within the business environment. It is the methods by which the managers of businesses and organizations plan, control, supervise and track the activities and growth of their operations. The management analysis portion of a business plan focuses on the details of how these activities will be performed.

Applying the Four Elements

Within a business plan, the author must address several issues related to the management analysis function. The mere act of preparing the business plan is one element of this process, as is establishing a baseline measurement system by which development activities may be measured.

This measurement system should not focus solely on financial measurements, but also take into consideration the measurement of managerial effectiveness by establishing an environment of specific goals and a means to review the progress in achieving those goals.

The author should also establish the structure of managerial and supervisory policies, citing who will be responsible for what segment or segments of the business or organization’s operations.

Establishing this structure will create the general guidelines for the hiring of staff members to fulfill those responsibilities by indicating what experiences or skills will be needed for the position.

Management analysis also extends into the scope of budgeting and financial oversight. Often, though not exclusively, financial benchmarks are used as a measurement of the business or organization’s progress and growth. Additional factors frequently examined in budgeting and oversight activities include personnel turnover, physical production counts, and public perceptions of the company and its products and services. A good business plan will acknowledge these and offer specific actions and methods for measuring these factors.

The Role of Consultants

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