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  • November 2016 (Revised December 2016)
  • Module Note

Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems

By: Robert Simons
  • Format:Print
  • | Language:English
  • | Pages:28
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Abstract

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.

Keywords

Management Control Systems; Implementing Strategy; Execution; Performance Measurement; Diagnostic Control Systems; Interactive Control Systems; Emergent Strategy; Goal Setting; Incentives; Strategy; Motivation and Incentives; Goals and Objectives; Management Systems; Performance Evaluation

Citation

Simons, Robert. "Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems." Harvard Business School Module Note 117-111, November 2016. (Revised December 2016.)
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About The Author

Robert Simons

Accounting and Management
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Related Work

    • November 2016 (Revised December 2016)
    • Faculty Research

    Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems

    By: Robert Simons
    • March 2017 (Revised May 2017)
    • Faculty Research

    The Strategy Execution Series

    By: Robert Simons and Jennifer Packard
Related Work
  • Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems By: Robert Simons
  • The Strategy Execution Series By: Robert Simons and Jennifer Packard
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