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Sound Management characterizes itself in the application of six fundamental principles for daily management:
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Transparency; |
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Continuity; |
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Efficiency; |
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Balance; |
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Fairness; |
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Abnegation. |
While taking care not to limit the manager, applying these principles ensures, among other things, protection to investors’ contributions, while at the same time inspiring confidence in the organization as far as third-party investors are concerned. The concept of Sound Management groups together principles and norms, under the headings of responsibility and obligation, permitting the application of these six principles for all acts of management. In doing this, an organization demonstrates that it understands the essential preliminaries to ensure their own economic viability. Moreover, contrary to other management approaches, Sound Management can be verified, measured and adapted according to the daily reality of the organization. Sound Management is supervised by the Order of Chartered Administrators of Quebec.
DeVeaux Brault & Associés offer you:
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A management framework standard to Sound Management principles:
In the form of a generic template of company policies
it acts as a guide to concretely apply Sound Management. Application tools such as a template of company policies, is also available. Moreover, DeVeaux Brault & Associés can help you adapt these templates according to the specific needs of your organization. |
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A Sound Management Audit®:
A professional evaluation and assessment of your management process according to the principles and norms of Sound Management. |
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A Self-diagnosis:
A series of questions allowing a summarized evaluation of your style of management compared to the Sound Management principles. |
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Training as well as textbook Exercer la Saine Gestion:
To help you learn more about Sound Management. |
Why practice Sound Management?
Even more than the title suggests, the occupation of manager or administrator conjures up thoughts of decision-making, which can sometimes come into conflict with the interests of the organization, the manager, of employees and even personal and professional management interests. An organization or a company’s resources (be they financial, human, material, property, technological, environmental etc.) will be in this way, entrusted to reliable managers.
Trust is the key element in Sound Management. A simple doubt can undermine that confidence which should inspire management and can sully an organization’s mission statement. This said, even if business risks are usually associated with even better returns, everything is not permitted! So up until where are we permitted to go? What means can we use to reach our goals without undermining the trust given to us while keeping our integrity intact? This problematic equation leads us to the elaboration of the Sound Management concept.
This concept allows one to establish the foundations of management credibility in the eyes of those who entrust resources (whether this be in the eyes of shareholders or investors or, in the case of the government, the eyes of taxpayers or those of someone borrowing from the bank, etc.).
More precisely, the concept of Sound Management has the following objectives:
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To articulate a vocabulary and conventions of recognized management; |
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To lead the management process; |
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To establish the preliminaries of economic viability. |
A present need
Just the fact that numerous scandals within organizations are revealed regularly on the news, demonstrates that there are important gaps hindering the credibility of many organisations. The generally accepted accounting principles (GAAP) apply only to the accounting portion of management. Thus, acts of management, which go against the accounting grain, so to speak, are not necessarily supervised by the GAAP and therefore do not necessarily, hold any certified credibility.
Sound Management proposes principles and norms to react to acts of management. The generally accepted Sound Management principles (GASMP), which are generally recognized (PHMGR) can be found at the Order of Chartered Administrators of Quebec.
Those of the accounting principles generally recognized (APGR) may be found at the Canadian Institute of Chartered Accountants (CICA).
Freedom of Movement
A liberal profession is principally characterized by the importance that opinion and judgement take during the decision making process. Sound Management is a reference point which guides the decision making process, without putting restraints on it. It is not so much our personal methods within that count, but rather, the knowledge that the methods put in place respect the 6 fundamental principles of Sound Management (transparency, continuity, efficiency, balance, fairness and abnegation). In their capacity, the fundamental principles do not impede risk taking, but rather, restrain making decisions which are too risky and could in turn, harm the organization. In this way, the principle of stepping back to gain perspective, to name only one, encourages a type of caution in proportion to risks taken when decision making. In doing this, the manager is able to see the situation from many different angles, to analyze the possible fundamentals and consequences, and in this way, possess better judgment.
The six fundamental principles
Sound Management is based on six fundamental principles (transparency, continuity, efficiency, balance, fairness and abnegation), which are combined with five management functions (planning, organizing, managing, supervising, and coordinating). It is in this way that the concept advocates the application of the six fundamental principles throughout each management function (planning with transparency, continuity, efficiency, etc.) Each combination “fundamental principle – management function”, comes from principles and norms permitting the application of the aforementioned principle with the before mentioned function.
The following table is a graphic representation of Sound Management.
Displayed below, horizontally, are the 6 fundamental principles and vertically, the 5 management functions, then for each combination, the pertaining application principles.
This model served as the base to develop a management framework template which describes, in a practical manner, examples of actions to take to respect the GASMP.
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