MANAGEMENT CONTROL SYSTEMS ROLE IN ADAPTING TO MARKET SHOCKS: THE EXPERIENCE OF SMALL CARE HOMES IN COVID 19 ITALY

Purpose – The purpose of this paper is to propose a management control system able to assist in the process of change taking place in small residential care residences (RCR). This has stimulated the planning of reforms and their realization with a careful analysis of the nature of, and economic and financial consequences of, such actions including their impact on stakeholders. This control system also aims to become a reporting and communication tool aimed at informing stakeholders of the organization's behaviour, results and economic and social responsibilities. Design/methodology/approach –The paper utilises the interventionist approach. The intervention was conducted by the authors and studied through joint reflections on documentation from memos, meetings and individual, semi-structured interviews. Findings – In the past there have been information deficiencies, but the proposed strategic management control system helps RCR in the strategic planning phase and, above all, to account for the use of resources, the results achieved, the choices made and the activities carried out to allow stakeholders to evaluate work. Research limitations/implications – This method is time and labour intensive, especially in its first application, and the data collection requires considerable company involvement. The interventionist approach may have influenced the empirical results, which may be affected by subjectivity on the part of the researchers. As the paper involves a single organization, care should be taken in generalizing its empirical evidence. Practical implications –This paper represents a first attempt to design and implement a management control system in a small organization operating in the long term care sector. Its value lies in its practical implications. Originality/value – Its value lies in its practical implications. Moreover, the paper investigates control systems in small RCR in applied terms, with a unique data set, contributing to reducing the gap between theory and practice.