Developing strategy implementation - the role of the measurement system

Abstract

Earlier studies in area of strategic control focus mainly on the measurement system's role as an enabler of strict strategy execution. Researchers have shown that companies having a measurement system in use have succeeded better than other companies. Successful strategy implementation, when seen as executing strategies according to plans, has still been an unattainable goal. This study aims at understanding successful strategy work and the measurement system's role in it.

The research problem of this study relates to optimal development of strategy implementation with the aid of a measurement system. The role of different operating environments is highlighted through thought the analysis. The objectives of the study are: 1. to develop a framework of strategy implementation from the measurement system's perspective.

2. to connect the generic advantages of having a measurement system to the framework.

3. to link the ways to adapt the measurement system to the operating environment and framework.

4. to identify the advantages gained and possibilities to develop strategy implementation further.

In the literature study previous research on strategy and strategy work, strategy implementation obstacles, measurement system's advantages and measurement systems in practice are examined. The output of this phase of the study is a comprehensive framework describing how the measurement system should be established to guarantee optimal strategy work in different operating environments. Empirical study is made through one case study. Empirical study starts by analyzing the operating environment of the case company. The developed framework is then used to define the optimal way of establishing a measurement system in the case company. At the end of the empirical study advantages gained are analyzed and further actions needed are discussed.

The framework constructed on the basis of the findings of the literature study was seen valuable by the case company. This study brings out the need for adapting strategy work to operating environment and shows that it can be partly done with the aid of a measurement system.