MANAGEMENT CONTROL SYSTEM

SUMMARY
Achieving Strategic Alignment & Feedback And Strategic Learning Process

International Accounting
GROUP 2:
Auzan Giffari (1210534005)
Wahyunda Risa Putri (1210534008)
Shabrina Alin Fristiana (121054010)

Lecturer : Drs. Riwayadi, MBA., Ak., CSRS.

International Class
Faculty of Economics
Andalas University
2014

Achieving Strategic Alignment & Feedback And

Strategic Learning Process

1. Achieving Strategic Alignment & Feedback

The main goal of strategic alignment is that every person in the organisation is making choices
that re-enforce each others decisions and that everyone is pursuing a common value proposition- a
common way of gaining competitive advantage. Maintaining this common view for each strategic
scenario can be very challenging to present in traditional formats such as Word documents, PowerPoint or
Excel worksheets. Strategy trees, strategy maps and scorecards can assist with this challenge by
presenting large amounts of data at once by using visuals.
One way of achieving strategic alignment is though feedback mechanisms such as strategy trees,
strategy maps, scorecards and dashboards. These can be useful as they can quickly identify areas that are
under performing.
A strategy tree lays out what you are trying to achieve and how you are planning on achieving it.
They show strategic objectives, critical success factors and the actions for each critical success factor.
This allows everyone to see what the strategy actually is.
Strategy maps have also become popular. These are made up of a subset of objects from the
strategy tree. They have become so popular as they only include objectives and the relationship between
them.
Scorecards can be critical in successful strategic alignment as they bind the users to the strategy
itself. They can be very useful as they give visuals of the key performance measures, their direction, key
responsibilities and what actions may be necessary. Scorecards can show users how their actions or
inactions can effect the alignment of strategy. However just using scorecards will not solve the alignment
issue. Failures may occur if the wrong technology is rolled out or if it does not have the support from
management. It needs to be as part of a wider performance management platform this is so the data will
be relevant, consistent, accurate and available when needed. One of the biggest advantages of scorecards
is that they can help to support change in an organisation another is ability for enquiry and analysis. This
drill down should show the relationship between the performance indicators and measurements such as
projects, objectives and goals. It should start to indicate how performance in one area of the business may
be affecting performance in another. This can help to show users how their own goals and objectives can
support the all over strategy.
Here are some of the success factors that can help you in aligning your staff with a new strategy:

Communication of the strategy at all levels of the organization

Effective communication lies at the heart of strategic alignment. It pretty much goes without

saying, that staff members can implement a new strategy successfully only if they are able to
understand it and accept it. Ideally, a communication strategy should be developed providing regular
and jargon free communication of the organization's strategy on various channels. This way
employees will be constantly reminded that the organization is heading into a new direction.
Communication is successful when every employee, every team, and every business unit is able to
answer the following questions:
In simple words, what is the organization's strategy?
What actions can I take to support strategy implementation? What do I need to do different from what
I have done so far?
How will it be measured if the goals have been achieved?
Which are my personal goals? How will my performance be measured?
How will the achieving or exceeding of goals be rewarded?

Employee participation
People are easier to motivate and mobilize when they have the feeling that they are involved in
decision making, rather than when decisions are being imposed on them. Employee participation is
one of the most effective ways to create strategic alignment. Employees should be involved both in
strategy development and in decisions on how to implement the strategy in practice. Giving them
opportunity to share ideas and concerns based on their frontline perspectives will not only provide
employees with a sense of ownership over the strategy and the implementation process but also helps
to improve their quality. Crowdsourcing, for instance, is one method for staff involvement that is
becoming increasingly popular.

Linking individual performance goals to strategy

Another way to motivate people is by providing financial incentives. Individual performance
goals should always be linked to the strategic goals of the organization. This way, employees are
encouraged to make a continuous personal contribution to the achievement of corporate goals. Good
and outstanding performance of teams and departments should be recognized and rewarded as well,
for instance by organizing parties or group getaways.

Human resource management should reflect strategy

Hiring, training, and retaining the right people is another important factor for achieving alignment
within your organization. You want to make sure that your staff has the skills and capabilities required
for best possible implementation of your strategy. For instance, if you follow an R&D strategy, make
sure to provide appropriate resources for hiring highly qualified professionals and offering them an
attractive work environment.

Roles should be clearly defined

Everyone involved in strategy implementation should be aware of the decisions and actions he or
she is responsible for. In small companies with a manageable number of employees, this may still be
rather obvious. In global corporations with many different divisions, however, the situation looks
quite different. In this case, a central point of ownership for the strategy implementation process as a
whole should be established and responsibilities for the various strategic initiatives should be clearly
defined.

Free flow of information across organizational boundaries

Silo thinking is one of the greatest stumbling blocks for strategic alignment. Free flow of
information both horizontally between teams and departments and vertically from top management all

the way down to front line employees and vice versa is key. Holding regular meetings to report on
progress made and discuss problems together can help. Equally important is that information on
changes in the external business environment that could affect the organization's strategy gets passed
on quickly. Strategy software can help to facilitate efficient communication within the organization.

Monitoring progress
Regular monitoring allows for making quick course corrections whenever problems arise.
Commonly used tools for monitoring progress are scorecards and dashboards. The latter reflect the
current performance status at a glance, and, therefore, are very suitable for making quick tactical
decisions.
Aligning business units and staff members with the organization's strategy is not a one-time deal
but an ongoing process that requires constant leadership, communication, and monitoring. Moreover
it requires diplomatic skills in dealing with different types of personalities. This becomes even more
important when a new strategy brings disadvantages for the staff (e.g., when closing branches and
laying off employees). This requires sure instincts and good change management. Strategic alignment
is not an easy task, particularly in large companies. However, it is indispensible in order to walk the
chosen path successfully

2. Strategic Learning Process

John A. Healy, Director of Strategic Learning and Evaluation at The Atlantic Philanthropies, shares ways
to position learning as an organizational priority.
The Strategic Learning and Evaluation (SLAE) team at The Atlantic Philanthropies develops
evaluation techniques, encourages learning from foundation and grantee experiences, and facilitates
dissemination of that learning. Strategic learning means that SLAE's audiencesthe foundation, grantees,
and interested external audiencesunderstand and respond to the lessons they learn from both formal
evaluation and more informal monitoring. We use multiple tactics to create a culture that emphasizes
learning.
1. Position evaluation as a resource linked to strategy. We began SLAE in early 2004 knowing that
it was important to demonstrate the value of learning and evaluation in creating and executing
more effective strategy. SLAE staff have both strong evaluation skills and the rare ability to build
enthusiasm for evaluation. SLAE works hard to ensure that both grantees and Atlantic see
planning and evaluation as strategic and necessary to reach their goals. Within Atlantic we act as
a resource, using an approach influenced by strategic planning. SLAE helps staff plan program
strategy, map out grant strategies, and ensure programs are ready to be evaluated. We use
strategic planning tools (e.g., logic models and theories of change) to clarify our intended
outcomes and the strategies to achieve them.
We also work with staff to help grantees plan strategically. Importantly, Atlantic objectives are
informed by grantees' objectives, rather than imposed by Atlantic. As a result, grantees have an
incentive to learn because their objectives are their own. Once the buy-in for evaluation exists, we
position evaluation as practical and useful for grantees' work. For example, human rights

grantees' focus has long been on fighting for a particular cause and not on assessment, so we
emphasize the importance of fighting the good fight effectively. If we frame evaluation
correctly and align it with the mission of the organization, grantees see it as a win because it
informs their work. Our approach helps us adapt as we learn and as the grant making
environments change.
2. Share accountability, acknowledge risk, and reward adaptive learning. Atlantic has a vertical
grant approval structure. Working with grantees, teams of program executives develop grant
proposals. They make recommendations to a program investment committee, and the committee
submits grants to the board for approval. So at the end of the day, everyone is accountable for
decisions about grant making.
Because accountability is shared, it is essential that everyone understands the risks associated
with grants and has an open dialogue about what may or may not work. If we are clear on the
risks and the grant fails but we learn something from it, the result can be as valuable as if the
grant had succeeded. In assessing progress we refer to grantee reports, rigorous project
evaluations, and external evaluations of grant clusters in our four program areas.
Now we are working on creating incentives for learning from mistakes at all levels of the
foundation. Staff need to understand that adaptive behavior from learning will be rewarded.
Shared accountability helps since the organization is seen as taking the risk rather than
individuals.
We also try to be open with grantees about the risks involved in their work. When we encourage
evaluation, grantees know we want honest answers. We build relationships with grantees so they
see us as advisors, and, if necessary, sources of funding to solve problems. This reinforcing of the
message that failure can lead to valuable lessons is essential if a culture of strategic learning is
to be developed. If the context changes or evaluation findings signal the need for change, grantees
understand they scan, and should, adjust if their approaches are no longer relevant.
3. Create space and structure for learning. It is not enough to encourage learning; we need to
create space and structure for doing it. To encourage internal learning, program staff and board
members have a fundamental discussion around strategy annually. We ensure the board is clear on
what we are trying to achieve, and that they engage in the learning process.
With grantees, we build purposeful opportunities for information exchange. For example, external
evaluators meet with Atlantic teams and grantees biannually for a mutual exchange, with
evaluators responding to grant-related data that staff and grantees provide and vice versa.
4. Focus on different levels of learning. Atlantic has agreed on a number of levels on which we
will share learning, and SLAE is now working with our communications staff to ensure learning
is targeted effectively to internal and external audiences.
At the foundation level, we will share case studies on organizational development and key areas
of change management. Atlantic has chosen to spend down our endowment over the next 10 to 15

years. As we do, we will share lessons on what the foundation does, and what we learn along the
way.
Also at the foundation level, we will commission significant studies on areas of strategic
importance to the foundation. For example, since many Atlantic objectives focus on policy
change, we will share lessons about key aspects of this process, such as evidence gathering and
advocacy. Additionally, at the program area level, every 3 to 4 years we will commission more
intensive evaluation where we pause and evaluate the core program areas in-depth.
Finally, at the grantee level, we ensure they can share their own lessons. We build in funding for
communications, and work closely with grantees to ensure they go that final step.