Design Internal Control and Strategic Frame work By Six Sigma.

Growing complexity of business has increased the demand of strategic management and develops new business models. For cost accountants the challengers are big enough to design the strategic frame work with these changing market dynamics.  In this article I would like to discuss the process of designing the strategic frame work Strategic management allows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence (rather than just respond to) activities and thus to exert control over its own destiny. Strategic management simplifies the business objectives and its long term visions. Moreover in my research I find that strategic frame work can be designed by using Six Sigma principles the following three questions which are the most important for an organization to frame its strategic road map.

Where are we now?

Where do we want to go?

How are we going to get there?

Identifying an organization’s existing vision, mission, objectives, and strategies is the logical starting point for strategic management because a firm’s present situation and condition may preclude certain strategies and may even dictate a particular. This is also the starting pint of framing internal control structure of an organization. In my research I find that applying Six Sigma in strategic frame work can be of great help and the organizational structure would get new heights compared to the peer group. Six Sigma helps to define the existing condition and internal control system of an organization.

 In internal control audit we design certain questions well these questions can be designed with more accurately if Six Sigma principles are kept in the process. Defining the situation and deriving standards to measure the same should be the best process of developing the strategic frame work of an organization. Six sigma helps to analyze the current situation and hence the cost accountants by adopting the six sigma principles can easily design the frame work to measure the strategic changes incorporated aligning with the organizational objectives. The strategic-management process is dynamic and continuous.

A change in any one of the major components in the model can necessitate a change in any or all of the other components. For instance, a shift in the economy could represent a major opportunity and require a change in long-term objectives and strategies; a failure to accomplish annual objectives could require a change in policy. Hence measurement of the strategic frame work is required which can only be designed by adopting the Six Sigma principles. Strategic management allows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence (rather than just respond to) activities—and thus to exert control over its own destiny. Six Sigma would helps to derive understanding of and commitment from all managers and employees to achieve the strategic  objectives of the organization.

Controlling the changes and new strategic initiatives are the biggest challenges followed right after the process of designing the same. Six Sigma principles helps to control and design the frame work for controlling the strategic frame work. Therefore, strategy formulation, implementation, and evaluation activities should be performed on a continual basis, not just at the end of the year or semiannually. The strategic-management process never really ends. Hence internal control and strategic frame work are designed based upon six sigma principles can be of great help in the long term. Six sigma principles would work like a direction tool for design the internal control and strategy of an organization. Further in my research I find that cost accountants who are new in this filed should adapt to the six sigma principles since adopting these principles would act as a guide for designing the frame work of internal control and strategies for various segments of the business.
Written by Indraneel Kripabindu Sen Gupta & Hardik Bhatt