Look Outside Your Firm: A Tool to Sense What's Coming
Dávila, Antonio; Oyon, Daniel; Parmigiani, Pilar; Schnegg, Maël
Original document: Look Outside Your Firm: A Tool to Sense What's Coming
For decades, management systems such as the Balanced Scorecard have existed to help managers analyze information on their internal performance. While useful for aligning strategy, different tools are needed to focus managers' attention on the external environment -- for it is there where the real opportunities and threats lie. This article begins by exploring how changes in the landscape create winners and losers. Then, the authors outline the need for a management system that senses the environment, what they call the Landscape Monitor. Their framework works by opening more windows on the world, not just one window at the top. As everyone in the organization is empowered to observe, monitor, assess and comment on information, insights start to move bottom up and top down at the same speed as the world changes. Managers are able to see farther and earlier what's coming, so they can be innovation leaders and not get left behind.
Tools and Frameworks:
> "The Landscape Monitor" graphically depicts what an organization should do to analyze its environment, which can be adapted to create an outward-looking tool of your own devising.
Inditex, Zara, Apple, IBM, Microsoft, Khan Academy, Coursera, Nestlé, Nespresso, Uber, Airbnb, EatWith, Balanced Scorecard
Based on the authors' research and expertise on the use of management control systems and software tools to advance performance management and innovation.
About the Authors:
Tony Davila is a professor of Entrepreneurship and Accounting & Control at IESE Business School.
Daniel Oyon is a professor of Management Control at HEC Lausanne, the
Faculty of Business and Economics at the University of Lausanne.
Pilar Parmigiani is CEO of a startup specializing in content development for teaching and research.
Maël Schnegg is a doctoral candidate in Management Control at HEC Lausanne, the Faculty of Business and Economics at the University of Lausanne.