The Promise of Management Control Systems for Innovation and Strategic Change

the difficulty of strategy execution and the tools managers can use to make strategy happen. As the title

Ahrens and Chapman go on to introduce their article by giving a background knowledge of modern perceptions of management control systems through their mention of related literature. Some key points discuss pertain to the author’s

Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).

A concept we learned about in Business Leadership that relates to the main point in this book is control systems. We looked at the importance of control in management and learned about various different systems. In this book, systems are shown to greatly help customer service. Systems are predetermined ways to get a specific result and still ensure consistency. Andrew, the plant manager said “Systems give you a floor, not a ceiling”. Thus, a system is the sort of thing you build on, a starting point. An external control measure, for example, involves

When working with companies, an employee has to wonder from time to time what makes management tick. What is the source of their decision-making practices? Why should people strategize in business or in war? Well first let’s define what is strategy? “It is a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result: a strategy for getting ahead in the world.” (dictionary.com, 2012) The main purpose of this article is to enhance our ability to think strategically. In addition, identifying how as managers and leaders of all organizational levels can

In the article Mintzberg (1984, pp. 66) argues that companies are incorrectly planning strategy through rationale control, the analysis of competitors and markets, and of companies strengths and weaknesses, and combining all of this information to create their “full-blown strategies”. Inkpen & Choudhury (1995) believed that organisations that relied on strict set routines and focused on consistency would then be unable to become innovative and be able to experiment.

Consider as an example the autonomous strategy of FedEx to launch the overnight courier business. Not only was this action prescient, but the company has maintained this action. It only reacts to external stimulus with respect to lower-level strategy and tactical decisions. The overarching strategy of most firms is chosen with little consideration for external characteristics those merely shape the course of the strategy's implementation. Thus, to an extent all firms engage in autonomous strategy formulation, and those who are able to implement their strategy successfully are the firms that thrive.

According Vermeulen, most new strategies are implemented. One of the chief reason for lack of implementation of these strategies is that ‘’ new strategies’’ are usually not strategies at all. A real strategy involves a clear set of choices which define what the organization is going to execute and those which isn’t going to execute. Therefore, most strategies are never put into actions despite the ample efforts of hard-working individuals since they doesn’t represent a set of clear choices (Vermeulen, 2017). To improve your strategy you must ensure that there is a clear communication of the strategy to the implementers who are the employees as well as all the people in the enterprise. Communicating your logic will be very important in answering some of the ‘’why’’ questions that your employees have. Answering such questions will help in persuading the employees that the new strategy is valuable. For effectiveness of the strategy, it should be issued from the top down and supported from the bottom up. This means that lower-level workers must be empowered so that they can think of their own initiatives to realize the

“Strategy as Revolution” is also associated with a set of weaknesses that compromise the quality of the article. For instance, the author recommends top executives to gather the viewpoints of lower rank employees in terms of strategy formulation; however, Hamel (1996) fails to highlight the ways these viewpoints can be filtered taking into account the fact that there could be dozens if not hundred ideas and implementing all of them is not practical.

Volumes have been written on the subject, which may in fact contribute to the difficulty of grasping the concept. One finds confusing and sometimes conflicting information on this blended concept that involves the vagaries of strategy and the behavioral art of leadership. Sometimes the methods and models used to explain it are more complicated than the concept and practice of strategic

An intended strategy approach suggests it is fixated on a specific outcome which may reduce the rigidity of an organization but it does ensure focus is kept. It is argued that an organization is more likely to succeed through these stricter

‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully. Strategy formation may take various forms such as implicit, explicit or emergent. Implicit strategy is a strategy formed by intuitions of an individual. As per implicit strategists, strategic management is about reading the environment

Changing circumstances and ongoing management efforts to improve the strategy cause a company 's strategy to evolve over time—a condition that makes the task of crafting a strategy a work in progress,

Effective control systems use mechanisms to monitor activities and take corrective action, if necessary. The supervisor observes what happens and

The purpose of this case study is to describe and analyse the features of the management control system (MCS) of University of Southern California (USC). Before commencing the analysis a brief background of USC is provided.