This chapter starts by understanding corporate need for performance measurement and control systems.
There will be an introduction to the main organizational tensions that hamper strategy implementation and emphasize the role of performance measurement and control systems to mitigate these tensions.
Then, a look at how companies organize and use performance information, which is the basis of management control, and introduce the main performance measurement and control systems as key components of their planning and control process.
Finally, the week concludes by illustrating the need for managers to use performance measurement and control systems in different ways: diagnostically and interactively. In particular, we will see how the combination of diagnostic and interactive controls help focus management attention on both internal and external risk factors - known as strategic uncertainties that can challenge company survival.