Attaining Sustainable Organizational Growth and Profitability
Successful strategy implementation requires, among others, a strategic control system that matches the organization’s strategy. Strategic control systems are management control systems designed by managers to help them successfully implement and execute the organization's strategies. Strategic control systems provide managers the tools to regulate and govern their activities. Strategic managers should ensure that financial controls and output controls are supplemented with behavior controls for efficient achievement of goals.
Strategic Control Systems
Strategic controls systems are tools designed by managers to help them evaluate and monitor the progress of activities directed towards implementing strategies. An important task of managers is to design strategic control systems for successfully implementing a strategy. These systems can be both proactive (feed forward) and reactive (feedback).
These systems further help managers achieve superior efficiency, quality, innovation and responsiveness to customers. They can also help in encouraging employees to think about innovation. Strategic control systems make employees more responsive to customers through evaluating and monitoring employees' behavior and contact with customers.
Types of Strategic Controls
Strategic controls are mainly of three types:
Strategic managers can measure efficiency by comparing the total inputs with the total outputs (how many units of inputs are used to produce a unit of output). Strategic managers should ensure that financial and output controls are supplemented with behavior controls for efficient achievement of goals.
I am a computer scientist by education and training. My interests are in modeling complex business and social systems to foster better strategic and operations management processes in delivering value to customers while meeting the expectations of stakeholders.