Strategic Renewal and Management Control Systems : The Implementation Process of Strategic Renewal Through MCS

Abstract: Background: Strategic renewal is a phenomenon where companies decide to do strategic alterations with the aim to improve their stasis in the current market (Kiesler & Sproull, 1982). This can be accomplished in several ways; in this report the focus is on management control systems and how they are incorporated in the strategic implementation process in order to drive and generate renewal. Management control systems are considered to be an important aspect of the strategy process (Simons, 1994). Purpose: The purpose of this thesis is to analyze to what extent and in what form interactive and diagnostic management control systems are employed in large organizations in order to drive strategic renewal. Methodology: This is a qualitative research with an abductive approach that is based on a single case study. Through interviews we answer how management control systems are used in the implementation process of strategic renewal on different levels of an organization; we have made ten interviews with top-, middle- and operational management.  Conclusion: Our main finding is that the process of implementing a successful strategic renewal through the adoption of MCS is not a linear one. The process is continuous and conducted in a circular manner; this also implies the interrelation of the variables.