Strategic Management Accounting in the Knowledge Economy : Interplay between Control and Strategy in IT Consultancy

Sammanfattning: In today’s world information and knowledge is the most valuable asset and an increasing number of people are working with selling their specialized knowledge. In this knowledge economy professional services are increasing in importance and consultants play an increasingly important role. This master thesis investigates the interplay between management control and the strategizing process in IT-Consultancy firms. With the purpose of gaining an understanding on how management control systems are being sed in IT consultancy firms and to identify the role it plays within the strategic dimension a case study approach was utilized. The method is based on a qualitative approach with semi-structured interviews as the mean for data collection. A total sample of 7 respondents from two IT-consultancy firms and one Management Consultant participated. The interviewees possess different positions within the two organizations ranging from top management down through the organizational levels in order to achieve a triangulation of the studied phenomenon. A framework consisting of different perspective on strategic management accounting, performance measurement in professional services, Levers of control and IT-Consultancy was built and used in order to analyze the collected data. The data shows that the strategizing process is for the main part conducted in the front line of the organization where the consultantsinteract with the customer on a daily basis. The conclusion drawn is that the interaction between strategizing process and management control systems is that the management control is designed in a way that not only allows for a clear strategizing activity to take form in the lower levels of the organization, but to constantly assure that this is what is done throughout the organization.