Implementation of Strategic Planning Systems

Cover Implementation of Strategic Planning Systems
Implementation of Strategic Planning Systems
Peter Lorange
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The internal management accounting system was set up to focus on dollar varicibles only and to measure short- term performance. A strong financial accounting tradition often prevailed within the controller's department which tended to ad- minister the management accounting function. In cases where the actual measurement of non-dollar variables would be difficult, attempts at tracking might not have been pursued because the relative emphasis on reliability might have been put above con- siderati...ons for relevance — in line with the stewardship tradition from financial accoianting. The measurement problems related to non-dollar variables should not be underestimated, however.
Partly, too, the lack of formal monitoring of progress to- wards objectives and strategic programs may be due to a more serious, "political" dilemma. A direct monitoring of a line 13 executive's strategic progress is probably a highly sensitive matter and, accordingly, the executive will want to be convinced of the soundness of the monitoring approach.


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