Abstract
Strategy (re)formulation and implementation pertains to the collective
ambition and responsibility of an entire organizational population.
This perspective justifies an integral approach to the design of
organizational controls, implying a design effort throughout the
organization at multiple organizational levels. The article proposes
a normative framework for multilevel design of diagnostic controls,
i.e. performance measurement systems. The framework is an attempt
to synthesize a design theory from systems theory and cybernetics,
using a composite of the goal-oriented model, the multiple-constituency
model and the natural-systems model of organization. Although the
framework concerns design of diagnostic controls, these products
of designing are not an end in themselves. Rather, the process of
designing is a means for enhancing strategic dialogue throughout
the organization, thereby interactively controlling strategy. Hence,
participation in the process of designing, during which the collective
attitude of mind is reset in accordance with changed or even new
strategic priorities, is essential. Application of the framework
is explored in the illustrative case of a service organization.
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