Strategic Use of Management Control Systems in Navigating Organizational Change: A Conceptual Framework

Abstract

Organizational change is an inevitable response to dynamic environments, competitive pressures, and technological advancement. However, executing strategic change effectively remains a persistent challenge for managers. In this context, Management Control Systems (MCS) play a crucial role not merely in monitoring performance, but in guiding and enabling organizations through uncertainty and transformation. This paper explores how MCS—particularly when used strategically—can support organizations in aligning employee behavior, managing risk, and fostering innovation during periods of change. Drawing upon contingency theory and Simons’ “levers of control” framework, the study proposes a conceptual model outlining the diagnostic and interactive uses of MCS as mechanisms to reinforce strategic focus and adaptive flexibility. The paper concludes with managerial implications for designing MCS in turbulent environments and sets the stage for future empirical validation.