The function of the Management Control area in a company is to plan, coordinate, monitor, and evaluate all activities related to business management. This includes goal setting, budgeting, monitoring key performance indicators, making data-driven strategic decisions, and ensuring the company operates efficiently and effectively. In summary, Management Control helps the company achieve its goals and improve performance through intelligent management.

In a medical laboratory, Management Control plays a crucial role in overseeing and optimizing all activities related to pharmaceutical research, development, production, and commercialization. Specific functions of Management Control include:

1. Monitoring and controlling research costs.
2. Analyzing production efficiency to ensure quality and reduce lead times.
3. Evaluating the profitability of different pharmaceutical products and business lines.
4. Budget monitoring.
5. Deviations tracking.

Budget Monitoring: Budgets serve to help companies plan their operations over a specific period, typically a calendar year. Key components of an annual budget include:

• Revenue forecast based on historical earnings.
• Expense projection for smooth business operations.
• Departmental budgeting with specific expense allocations.
• Contingency fund for unforeseen expenses.
• Strategic plan with medium and long-term objectives.
• Regular reviews of actual expenses and revenues to ensure goal achievement, known as monitoring.

Once goals, strategies, and resources are established, the company can navigate the near future with reduced uncertainty. Inflation considerations are crucial, especially in regions like Argentina.

Integrating all company areas into the annual budget simplifies detection and correction of departmental deviations. It’s ideal to start this process three months before implementation. Effective budgeting involves coordinating all departmental needs and maintaining strong internal communication to align specific actions with overall company goals.

Real-time analysis and agile responses are crucial for managing and correcting deviations promptly. Accurate measurements provide detailed insights into key areas requiring control.