The paradox of strategic controls

This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place....

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Published in	Strategic management journal Vol. 11; no. 1; pp. 43 - 57
Main Authors	Goold, Michael, Quinn, John J.
Format	Journal Article
Language	English
Published	Chichester John Wiley & Sons, Ltd 01.01.1990 John Wiley and Sons Wiley John Wiley Wiley Periodicals Inc
Subjects	Applied sciences Budgetary control Business management Business structures Clans Competition Control systems Corporate strategies Exact sciences and technology Feedback Financial budgets Financial management Goal setting Implications Intervention Objectives Operational research and scientific management Operational research. Management science Paradoxes Planning. Forecasting Process planning Production controls Production planning Strategic management Strategic planning Upper management Organization management Review Planning Control system
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Abstract	This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place. The paper then identifies some of the difficulties that may be associated with establishing a strategic control system, points up issues that require further empirical research, and suggests a framework for exploring a. contingency theory concerning the sorts of businesses in which strategic control systems would be most and least valuable.
AbstractList	Abstract This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place. The paper then identifies some of the difficulties that may be associated with establishing a strategic control system, points up issues that require further empirical research, and suggests a framework for exploring a contingency theory concerning the sorts of businesses in which strategic control systems would be most and least valuable. This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place. The paper then identifies some of the difficulties that may be associated with establishing a strategic control system, points up issues that require further empirical research, and suggests a framework for exploring a contingency theory concerning the sorts of businesses in which strategic control systems would be most and least valuable. The paradox at the core of strategic management thinking - the conflict between theory and practice on strategic controls - is explored. In designing a control system, it is important to ensure a balance between strategy and operations, between the long term and the short term. The research that has been done suggests that, despite the arguments in favor of the concept of a strategic control system, few companies have yet made much progress with the development and use of systems of this sort. Problems with the practice of strategic control include: 1. devising strategic controls that can accommodate uncertainty and flexibility in the implementation of strategy, 2. defining strategic goals that are suitable for motivating managers, 3. ensuring that strategic control systems assist, rather than attempt to replace, management judgment, and 4. building a strategic control system that enhances, rather than destroys, mutual confidence between the levels of management.
Author	Goold, Michael Quinn, John J.
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Copyright	Copyright 1990 John Wiley and Sons Limited Copyright © 1990 John Wiley & Sons, Ltd. 1990 INIST-CNRS Copyright Wiley Periodicals Inc. Jan 1990
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Snippet	This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic... Abstract This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing... The paradox at the core of strategic management thinking - the conflict between theory and practice on strategic controls - is explored. In designing a control...
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SubjectTerms	Applied sciences Budgetary control Business management Business structures Clans Competition Control systems Corporate strategies Exact sciences and technology Feedback Financial budgets Financial management Goal setting Implications Intervention Objectives Operational research and scientific management Operational research. Management science Paradoxes Planning. Forecasting Process planning Production controls Production planning Strategic management Strategic planning Upper management
Title	The paradox of strategic controls
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