The purpose of a strategic control system is to facilitate converting strategic plans into actions...

Question

The purpose of a strategic control system is to facilitate converting strategic plans into actions and to balance the requirements of the business through the transitions that new strategies inevitably bring. Atkinson XXXXXXXXXXsuggests the BSC approach provides a strategic control mechanism by establishing short-terms goals with longer-term impact, helping organisations achieve successful strategy implementation by mitigating the risk of management control systems hindering progress.

What is your view on this? Do you think that BSC companies integrate strategic and management control systems effectively or do you believe that the strategic control systems like those generated by BSC could replace traditional management control systems?

Robert · Accepted Answer

I certainly believe that BSC or Balanced Scorecard approach tends to bring about an 
effective integration of the short term goals with the impact over a long time. This is made 
possible through the four different perspectives that BSC tends to focus on. The short term 
goals of customer satisfaction and financial performance are catered to by specific 
performance metric related to financial and customer perspective. Simultaneously, there is 
also focus on internal processes improvement which tends to bring in operational efficiency 
in the long run and hence aids the achievement of short term goals in a sustainable manner  
(Sadler, 2003).

The purpose of a strategic control system is to facilitate converting strategic plans into actions and to balance the requirements of the business through the transitions that new strategies...

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