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Achieving Sound MIS

The development of sound MIS is the result of the development and
enforcement of a culture of system ownership. An "owner" is a system user
who knows current customer and constituent needs and also has budget
authority to fund new projects. Building "ownership" promotes pride in
institution processes and helps ensure accountability.





Although MIS does not necessarily reduce expenses, the development of
meaningful systems, and their proper use, will lessen the probability that
erroneous decisions will be made because of inaccurate or untimely
information. Erroneous decisions invariably misallocate and/or waste
resources. This may result in an adverse impact on earnings and/or capital.
MIS which meets the five elements of useability is a critical ingredient to an
institution's short- and long-range planning efforts. To achieve sound MIS, the
organization's planning process should include consideration of MIS needs at
both the tactical and strategic levels. For example, at a tactical level MIS
systems and report output should support the annual operating plan and
budgetary processes. They should also be used in support of the long term
strategic MIS and business planning initiatives. Without the development of
an effective MIS, it is more difficult for management to measure and monitor
the success of new initiatives and the progress of ongoing projects. Two
common examples of this would be the management of mergers and
acquisitions or the continuing development and the introduction of new
products and services.

Management needs to ensure that MIS systems are developed according to a
sound methodology that encompasses the following phases:

• Appropriate analysis of system alternatives, approval points as the
system is developed or acquired, and task organization.
• Program development and negotiation of contracts with equipment and
software vendors.
• Development of user instructions, training, and testing of the system.
• Installation and maintenance of the system.

Management should also consider use of "project management techniques" to
monitor progress as the MIS system is being developed. Internal controls
must be woven into the processes and periodically reviewed by auditors.
Management also should ensure that managers and staff receive initial and
ongoing training in MIS. In addition, user manuals should be available and
provide the following information:

• A brief description of the application or system.
• Input instructions, including collection points and times to send
updated information.
• Balancing and reconciliation procedures.
• A complete listing of output reports, including samples.




Depending on the size and complexity of its MIS system, an institution may
need to use different manuals for different users such as first-level users, unit
managers, and programmers.


NOOPUR GARG
BBA/4536/07

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