Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems

This module reading introduces diagnostic and interactive control systems. Diagnostic control systems are the management-by-exception systems that managers use to monitor the achievement of their business strategy. Interactive control systems are the systems that top managers use to focus the organization on strategic uncertainties. Diagnostic control systems and interactive control systems work together to ensure the implementation of today’s strategy and, at the same time, allow the organization to position itself for tomorrow. The module discusses how managers choose which interactive system to use and explores the risks that are introduced through the use of these performance measurement and control systems. While this module is designed to be used alone, it is part of the Strategy Execution series. Taken together, the series forms a complete course that teaches the latest techniques for using performance measurement and control systems to implement strategy. Modules 1 - 4 set out the foundations for strategy implementation. Modules 5 - 10 teach quantitative tools for performance measurement and control. Modules 11 - 15 illustrate the use of these techniques by managers to achieve profit goals and strategies.