This lesson examines how performance management systems are designed and used at the strategic level. It covers advanced frameworks such as the Balanced Scorecard (BSC), the Levers of Control (Simons), and the importance of aligning Management Control Systems (MCS) with organisational strategy.

• Strategising Management Control Systems (MCSs): The CASL syllabus requires students to “Evaluate the effectiveness of an organisation’s control systems (including policies, codes, and guidelines) in aligning operations with strategy” . This goes beyond operational control to consider how controls are used to guide and monitor strategic direction.

• MCS as a Package: The syllabus also asks students to “Evaluate the usefulness of MCS as a package (Malimi and Brown [2008]) and strategic use of MCSs, including the application of Levers of Control Framework of Simons (1995) and Tessier and Otley framework (2012)” . This recognises that multiple control mechanisms work together to influence behaviour and drive performance.

• Strategic Performance Management Systems (SPMS): The CASL syllabus covers the “Key features of effective Strategic Performance Management Systems (SPMS), including how they can drive business success by aligning goals, monitoring progress, providing regular feedback, coaching and enhancing employee productivity” . The Balanced Scorecard (BSC) is a key tool in this area .

• Implementing a Balanced Scorecard: Strategic considerations in using the BSC include strategy implementation, aligning the BSC to strategy, features of an effective BSC, and pitfalls in implementing a BSC . The sustainability version of the BSC (SBSC) is also a key integration point, covered later in this module .

• Responsibility Accounting in MNCs: For multinational organisations, performance measurement must consider the complexities of international transfer pricing, decentralisation, and the choice of performance measures and targets .