In the past, organizations have often used 20 to 30 years of historical data to help develop strategic plans for the next 5 to 10 years. However, the fast pace of change in today’s business world causes historical data to become irrelevant more quickly. Data Vault founder Dan Linstedt argues that managers should develop strategic plans that allow for more agile decision making in response to changing conditions.
A. Explain why rapid change causes historical data to become irrelevant more quickly.
B. When economic conditions are changing rapidly, explain why diagnostic control systems become less useful for organizational success.
C. Describe how interactive control systems can help managers adapt to changing economic conditions.