Market segments: Service
The role of planning in the communal segment is generally not too important. This is because everyone’s mind is set on one priority: to fulfill the duties imposed by the founder or law. As a rule, directors do not have available to them interim results of activities or financial management of the organization they manage. They rely on economic experts and officers who, however, sometimes underestimate, misrepresent or cannot get the information and present it in time. Management depends on what someone creates manually or communicates to others based on his or her own estimates. For example, no one monitors performance of employees or operations in many allowance organizations.
Such “management style” makes it impossible to operatively respond to events and changes brought by life. Considering that the entire sector of municipalities – and to a certain degree state enterprises as well – are accountable for their financial management to the broad public, it is clear that they should be capable of such a response. Practice shows that the most effective route to satisfaction and success does not lead only through directives and regulations but can be found also by smart deployment of IT systems.
Managers working in local government bodies, allowance organizations or state enterprises should ask themselves elementary questions, such as: Will our budget be enough to cover performances that are required from us? To what extent can we raise additional financial resources by our own complementary events? Can we appropriately defend the performances we make and the costs we expend to our founder and the public? If they can use a business management support system which is able to work with specifics of the branch and combine all key processes in one simple, easily understandable and functional unit, they will find the answers quickly and easily.