Interactive control systems are formal information systems managers use to focus the company’s attention and learning on key strategic issues. Managers use interactive control systems to create an ongoing dialogue around these key issues and to personally involve themselves in the decision-making activities of subordinates. An excessive focus on
diagnostic control systems and critical performance variables can cause an organization to ignore emerging threats and opportunities-changes in technology, customer preferences, regulations, and competitors that can undercut a business. Interactive control systems help prevent this problem by highlighting and tracking strategic uncertainties businesses face, such as the emergence of digital imaging in the case of Kodak and Fujifilm, airline deregulation in the case of American Airlines, and the shift in customer preferences toward open-source Android operating systems in the case of BlackBerry. The key to this control lever is frequent face-to-face communications among managers and employees regarding these critical uncertainties. The result is ongoing discussion and debate about assumptions and action plans. New strategies emerge from the dialogue and debate surrounding the interactive process. Interactive control systems force busy managers to step back from the actions needed to manage the business today and to shift their focus forward to positioning the organization for the opportunities and threats of tomorrow.