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Rules rule rules that rule rules

In times of increasing bureaucratization it becomes more difficult to oversee the innumerable rules that must be followed. Since the employees act autonomously and each detail cannot be regulated from the top, they need a clear set of rules. In order to provide the best possible directions, the enterprises use for example COSO and COBIT as a guideline, i.e. standards for implementing the Governance. The trend to a constantly growing number at standards is foreseeable. Let’s remember the different standards in Project Management. Do we have to adjust ourselves to the fact that in the future rules rule rules that rule rules?

Schlangebeisstschwanz

A common denominator in the rules is the fact that they follow certain rules. The following aspects define the quality of the Governance.

  • Transparency
    In this case the decisions, the decision path and the principles of leadership should be made accessible to the employees. They should always be able to understand, for what reasons the top management deploys certain rules. At the same time they should understand the point of control for their own influence.
  • Economy
    In order to create a reasonable handling of scarce means, the procedures should be designed accordingly. These definitions prevent an uncontrolled growth of rules and procedures. Beyond that, they reduce the expenditure for the introduction of guidelines and enable over time an improved use.
  • Participation
    The employees are motivated by personal sharing and participation in the designing of the enterprise. They receive with the regulations the right and the obligation to participate in the decision making and the implementations. For this reason clear points of control for the participation of the employees are inserted in the procedures.
  • Competencies
    Through clear assignments of authority and responsibility defined tasks prevent Muda and friction losses. All areas are considered as well as the overlap of authorities and mutual obstructions are prevented. The employees know through the transferred rights and obligations, what they have to do – and what not.
  • Rule of law
    Through the bindingness to the rules for all, without exception, the individual is reinforced. In order to get a functioning interaction, it must be guaranteed that that all are equally treated. For this purpose it needs in case of conflicts a clear procedure as well as an independent board of arbitration that can be called by everybody.
  • Justice
    Through an adequate and demandable reconciliation of interests, the justice offers a general framework that goes beyond the detailed rules. The values of the enterprise need a common, fundamental understanding about what is right and what not. A respective understanding avoids a variety of detailed regulations.

In order to guarantee that the Governance is adapted to the respective conditions, a clear control model is required for the enterprises. Thus, COSO offers a framework for the financial reporting and Cobit for the IT. The Governance can be introduced correctly at the right place with these frameworks.

Bottom line: The build-up of a control system, the Governance, is an effective means, for steering enterprises or departments. Standards facilitate reliably the implementation. It is however important to resist the regulation craze. More is not necessarily better. Rules rule rules that rule the rules is the end of effective rule sets.

Showing figures smartly

More and more figures are nowadays created and used as the basis for decisions. This leads to the fact that one does not see the forest for the trees. Charts provide a way out. Unfortunately the users do not always consider the influence of the style of the presentation. This is amazing, since the acceptance of a message is reinforced by showing figures smartly.

Visualisierungen EXCEL scribble

Pure numbers do not always clearly convey the desired impression. Luckily most computers have nowadays MS-EXCEL with various business diagrams, like column, line, circle and bar charts etc. Graphical presentations are beneficial. Those charts add to the actual numerical value a graphical aspect: larger or smaller, rising or falling, more or less similar etc. This strengthens the desired statement. The following aspects should be considered.

  • Size
    If orders of magnitude, like quantity, length, performance etc. are presented and compared, the bar charts or bar graphs are recommended. Thus, the different values can be prepared with horizontal bars or vertical columns side by side. The choice of the range strengthens thereby the message. Ranking becomes visible through additional sorting. The number of values that might be presented should be adapted to the presentation: for projections 7plusminus2, for A4 formats not more than 40 per page.
  • Progressions
    Values that change over time are represented with the line diagram. Rising costs, employee fluctuation or changes of temperature can also be represented over very long periods. The line conveys intuitively the course of time from left to right. The number of visualized values is defined by the question, whether single values or general progressions are important.
  • Portions of a whole
    If you want to show the portions of a whole, the circle or pie chart is perfect. The total circle represents thereby the 100%. If you want to compare the portions of different wholeness’s, you can use stacked bar charts. Usually the described elements should not exceed
  • Correlations
    Scatter diagrams help showing patterns, in order to be able to recognize dependencies of values. Thus, the BCG matrix shows, based on a joint look at market growth versus market share, in which products you should invest or not. Additionally, scatter diagrams can be used, in order to identify unusual pairs of value that arise outside of the value cloud.

Bottom line: For various purposes specific representation types are best. Size comparisons are represented by column and bar charts. Courses of time are shown with line diagrams. Parts of a whole are prepared with circle or pie charts. Correlations become visible with scatter diagrams.