c This research is a longitudinal study of 10 newly-appointed top managers; the research focuses on understanding (1) their business vision and strategy and (2) how they use formal control systems as levers of strategic change and renewal. The results reported in the paper are based on data collected over a period of approximately 18 months following the appointment of each new manager. Analysis of the data suggests that control systems are important levers used to manage both evolutionary and revolutionary change. In situations of strategic change, control systems are used by top managers to formalize beliefs, set boundaries on acceptable strategic behavior, define and measure critical petformance variables, and motivate debate and discussion about strategic uncertainties. In addition to traditional measuring and monitoring functions, control systems are used by top managers to overcome organizational inertia; communicate new strategic agendas; establish implementation timetables and targets; and ensure continuing attention to new strategic initiatives.

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Management control systems are viewed typically us munagement-by-exception tools for implementing intended strategies. This study provides a different perspective by focusing on the way that top rnanagers use specific control system to focus organizational attention on strategic uncertainties and thereby guide the rlevelopment of new strategic initiatives. Analysis of field-based data from 30 businesses in the U.S. health care products industry i,s used to develop a model atid propositions thnt clistingiiish between interactive and diagnostic control systerns, and illustrate the selective use of these systems in different strategic contexts.

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