After defining the objectives and indicators for the board (strategic and tactical objectives) and for the senior directors (1st level operational objectives corresponding to the objectives of the 1st level organizational competences or 1s level self-directed teams) it is necessary to negotiate goals, to implement decision support systems to ensure the calculation of the indicators and to create organizational routines. Resuming, it is mandatory to define and implement a management and control system, particularly the report system for the senior directors.
Simultaneously this decision support system has also the power to control the execution of the business strategy.
Two integrated control systems:
- Strategy control system (explains where the execution of the strategy failed)
- Management control systems (explains the deviations of the indicators)
To complement this system, it is also important to prepare the business plan and budget (see the respective section).
In each organizational competence, there an internal governance system managed by a 2nd level organizational competence dedicated to management control. This is a key element in the management control system.
It is urgent that the board make the new dashboards and report system mandatory. Keeping the old one is feeding the resistance to change.
Then it is needed to extend the system following the development of the organizational architecture until the task level.