Strategic orientation and top management attention to control systems

Simons, Robert

doi:10.1002/smj.4250120105

Cited by 554 publications

(525 citation statements)

References 17 publications

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“…Consistent with Simons' study [56], the present paper views formal control as predominantly contributing to either strategy formulation or to strategy implementation. Use of formal control is predominantly for the development of emergent strategies or else for the realization of intended strategies.…”

Section: Management Control As Strategy-makingsupporting

confidence: 64%

“…Interactive control is practised when (i) information generated by the MCS is an important and recurring agenda addressed by top management; (ii) the process demands frequent and regular attention from managers at all levels; (iii) data are discussed and interpreted in fact-to-face meetings among organizational members of different hierarchical levels; and, (iv) the process relies on the continual challenge and debate of underlying data, assumptions, and action plans (Simons [133]). Given the need for significant amounts of top management attention, Simons [134] finds that managers limit interactive systems to one system only.…”

Section: Interactive Control Systemsmentioning

confidence: 99%

“…As explained by Simons [135]: "when top managers of large business do not have a vision for the future-or a sense of urgency about creating such a vision-they do not appear to make control systems interactive". In this context of 'dormant decoupled strategy', the organization lacks vision for future development in both the strategic and sustainability domains.…”

Section: Dormant Decoupled Strategy (Configuration A)mentioning

confidence: 99%

“…A persistent lack of strategy in a competitive environment would probably force the corporation out of business. We can therefore assume that, the empirical verisimilitude is low as this configuration's stability is low and confined to periods of strategy 'crisis' [137] -apart from the relatively exceptional case of "permanently failing organizations" [138]. The entrance of a new head or CEO may indeed stimulate the adoption of a new clear vision [ 139].…”

Section: Dormant Decoupled Strategy (Configuration A)mentioning

confidence: 99%

“…Our concept of uses of management control systems is derived from Simons' levers of control framework [42,43,44,45,46,47]. More specifically, we distinguish control systems used by executives as 'management by expectations' tools (diagnostic) to correct actors' actions, from control systems used as 'actual strategic levers' (interactive) to focus actors' attention on key goals and support changes aligned with higher strategic objectives.…”

Section: Introductionmentioning

confidence: 99%

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Configuring management control systems: Theorizing the integration of strategy and sustainability

Gond

Grubnic

Herzig

et al. 2012

Management Accounting Research

445

583

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Although organizations have embraced the sustainability rhetoric in their discourse and external reporting, little is known about the processes whereby management control system contributes to a deeper integration of sustainability within organizational strategy. This paper addresses this gap and mobilizes a configuration approach to theorise the roles and uses of management control system (MCS) and sustainability control system (SCS) in the integration of sustainability within organizational strategy. Building on the levers of control framework, we distinguish two possible uses of a MCS and a SCS-a diagnostic use and an interactive use-, and we specify the modes of MCS and SCS integration. We rely on these two core dimensions to identify eight organizational configurations that reflect the various uses as well as their modes of integration of SCS and MCS. We characterize these ideals-type configurations, explain their impact on the triple bottom line, and describe which mechanisms allow organizations to move from one configuration to another. In so doing, we highlight various paths toward sustainability integration or marginalization within organizations. Finally, we explain how our framework can support future research on the role of MCS and SCS in the integration of sustainability within strategy.

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Section: Management Control As Strategy-makingsupporting

confidence: 64%

Section: Interactive Control Systemsmentioning

confidence: 99%

Section: Dormant Decoupled Strategy (Configuration A)mentioning

confidence: 99%

Section: Dormant Decoupled Strategy (Configuration A)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Configuring management control systems: Theorizing the integration of strategy and sustainability

Gond

Grubnic

Herzig

et al. 2012

Management Accounting Research

445

583

View full text Add to dashboard Cite

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Adoption of the Balanced Scorecard: A Contingency Variables Analysis

et al. 2011

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We examine the association between contingency variables and the adoption of a Balanced Scorecard (BSC). The contingency variables we examine include business-level strategy, firm size, environmental uncertainty, and investment in intangible assets. Utilizing both survey and archival data, collected as part of a mixed-methodology design, we find that BSC adoption is significantly related to business strategy, firm size, and environmental uncertainty. Specifically, BSC adopters are (1) more likely to follow a Prospector or Analyzer business strategy, (2) are significantly larger, and (3) exhibit significantly higher environmental uncertainty than non-adopters. We also examined the financial performance of BSC adopters prior to the decision to adopt and following the implementation of the BSC. While we found no post-implementation performance effects, we did find tentative evidence that the financial performance of BSC adopters leading up to the adoption decision was weaker than comparison firms. Our empirical findings provide theoretical and managerial insights into the BSC adoption decision, and substantiate the need for additional BSC adoption and implementation research.3

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Beyond feedback control: the interactive use of performance management systems. Implications for process innovation in Italian healthcare organizations

Demartini

Mella

2013

Health Planning & Management

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This paper shows how the use of performance management systems affects managers' perception of satisfaction, the effectiveness of the control system and the performance related to process innovation. An exploratory empirical research has been conducted on 85 managers operating in Italian healthcare organizations. Empirical findings put forward that the interactive--as opposed to diagnostic--use of performance management systems enhances managerial satisfaction with the control system and managerial perception of effectiveness. The present study then showed that it is not the control itself that is an obstacle to innovation in organizations in general (and in health organizations in particular) but the diagnostic use of the control mechanisms, which impedes the interaction between the control personnel and those subject to the control. Finally, this paper addresses managerial implications and further research avenues.

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Strategic orientation and top management attention to control systems

Cited by 554 publications

References 17 publications

Configuring management control systems: Theorizing the integration of strategy and sustainability

Configuring management control systems: Theorizing the integration of strategy and sustainability

Adoption of the Balanced Scorecard: A Contingency Variables Analysis

Beyond feedback control: the interactive use of performance management systems. Implications for process innovation in Italian healthcare organizations

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