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This article describes an approach to strategy execution using lessons learned from improvement efforts to the sales incentive compensation (SIC) business processes and IT…
This article describes an approach to strategy execution using lessons learned from improvement efforts to the sales incentive compensation (SIC) business processes and IT systems in Cisco Systems.
This case outlines an alternative approach to strategy execution–a COAR strategy map methodology– illustrated with lessons learned from efforts to improve the sales incentive compensation business processes and IT systems in Cisco Systems.”
By following a structured and systematic process, organizations can implement a process for strategy execution that is effective and repeatable. In executing strategy, stay focused on how to translate the decisions taken while defining business strategy into operations. As business strategy changes, elements of the strategy execution must change as well.
This case is primarily a guide to strategy execution and is not meant to be a prescription for a cutting edge sales compensation plan.
Although the examples used in this article relate to SIC business processes, the lessons learned can be applied to strategy execution in general.
It is this “peek forward” into a virtual execution setting, and the opportunity to use it as a scenario-like tool to test alternatives, that increases the likelihood that managers will devise a stable and executable strategy.
The purpose of this paper is to examine the role of management control systems (MCS) in organisational change towards sustainability. In particular, it examines the extent…
The purpose of this paper is to examine the role of management control systems (MCS) in organisational change towards sustainability. In particular, it examines the extent to which MCS may be instrumental in transformative organisational change in this sphere.
Through an in-depth case study of an Australian multinational corporation in the property sector, this paper explores the possibilities for MCS to influence organisational change towards a multi-bottom-line, balanced approach to social and environmental challenges facing corporations. MCS are conceptualised using Simons’ (1995) Levers of Control framework. On the question of sustainability, the approach adopted in this paper contrasts with much of the prior literature that largely takes a predominantly pragmatist approach and equates sustainability performance with financial performance. The prior literature generally reports a positive role for MCS in organisational change efforts. By contrast, drawing on the typology developed by Hopwood et al. (2005), this paper views sustainability as requiring a balancing of economic, social and environmental concerns.
The findings indicate that although MCS are not irrelevant, they do not play a transformative role in enabling deep-seated organisational change towards sustainability. The critical literature on the nature of MCS is drawn upon to explore the reasons for the observed non-role.
The analysis sheds light on factors that may influence the effectiveness of conventional notions of MCS in organisational change. The findings contribute to the debate regarding the suitability of continued efforts at using conventional notions of management accounting and MCS in enabling organisational change towards greater social and environmental sustainability. The paper also highlights the value of a critical examination of the usefulness of management accounting and control practices in the context of organisational change towards sustainability.
The purpose of this paper is to examine and explain the complex interrelationships which influence the ability of firms to create value for their providers of finance and…
The purpose of this paper is to examine and explain the complex interrelationships which influence the ability of firms to create value for their providers of finance and other stakeholders (loosely referred to in practice as “integrated thinking”). In doing so it examines the interrelationships between: environmental, social and governance (ESG) risk; delivering on corporate strategy; non-financial corporate reporting; and, board oversight.
Interviews were conducted with board chairs and non-executive directors of large listed companies on the Johannesburg Stock Exchange (where Boards are required to have a social and ethics sub-committee and approve integrated reports which have been mandatory since 2010) and the Australian Stock Exchange (where Board directors’ liability legislation results in Boards being reluctant to adopt integrated reporting which is voluntary).
The research finds that contemporary reporting processes, and in particular those set out in the King III Code and the International Integrated Reporting Framework, influence cognitive frames enhancing board oversight and assisting organisations in managing complexity. This results in increased awareness of the impact of ESG issues together with a broader view of value creation despite investor disinterest.
A number of avenues of research are suggested to further examine the interrelationships identified.
The research assists the development of practice and policy by articulating and enhancing the understanding of linkages, which loosely fall under the vague practitioner term “integrated thinking”.
The conceptualisation can inform national and global discussions on the appropriateness of corporate reporting and governance models to achieve sustainable development and contribute to the Sustainable Development Goals.
The paper conceptualises emerging and complex interrelationships. The cross-country comparison allows an assessment of the extent to which different national social contexts with differing governance and reporting frameworks lead to different perspectives on, and approaches to, value creation.
This study develops a model for estimating an index measure of asset specificity based on the liquidation value of corporate firms and the proportional distribution of…
This study develops a model for estimating an index measure of asset specificity based on the liquidation value of corporate firms and the proportional distribution of their pre‐liquidation assets. A statistically significant positive relationship was found to exist between the estimated specificity index and financial leverage supporting the theoretical prediction. Additional evidence was found that firms with higher variability in sales, lower probabilities of failure, higher valued non‐debt tax shields and higher levels of financial slack use less financial leverage.