|
In his book "Levers of Control: How Managers Use Innovative Control Systems
to Drive Strategic Renewal" (1995), Robert Simons introduced the Levers of
Control framework, giving managers in large companies a framework to manage
the tension between (value) creation and control (managing and measuring value).
 What are the Levers of Control? Definition
Levers of Control are defined as any:
- Formal information-based routine or procedure
- that is used by management
- to maintain or alter patterns in organizational behavior.
Simons Levers of Control
- Belief Systems that an organization must put in place so that
it can control commitment to the organization's vision, core values, mission
statements, vision statements, credos and statements of purpose.
- Boundary Systems which an organization must have so that it can
stake out the territory for each participant: codes of conduct, predefined
strategic planning methods, asset acquisition regulations, operational guidelines.
- Diagnostic Control Systems. These must be put in place by a company
so that it can optimize outcomes, and get the work done: output measurement,
valuation standards, incentive systems and compensation systems.
- Interactive Control Systems. Smart organizations use these for
tracking new ideas, for triggering new learning, and for properly positioning
the organization for the future: incorporating process data into management
interaction, face-to-face meetings with employees, challenging data, assumptions
and action plans of subordinates.
Questions related to the levers of Simons
To get a better handle on understanding an organization, Simon recommends
the following questions.
- Have senior managers communicated the core values of the business in
a way that people understand and embrace?
- Have managers in your organization clearly identified the specific actions
and behaviors that are not allowed?
- Are diagnostic control systems adequate at monitoring critical performance
variables?
- Are the control systems interactive? And have they been designed to
stimulate learning?
- Are you paying enough for traditional internal controls?
Book: Robert Simons
- Levers of Control -
|
Levers of Control Special Interest Group
|
|
Special Interest Group (40 members)
|
|
|
Forum about Levers of Control
|
|
|
Discussions about Levers of Control.
|
Interactive Control Systems
Regarding the interactive control systems, controling an organization's employees, we can also add:
- Increasing salary (...)
|
|
|
|
| |
|
|
|
Best Practices about Levers of Control
|
|
|
Here you find the most valuable discussions from the past.
|
|
|
Expert Tips about Levers of Control
|
|
|
Here you will find advices by experts.
|
|
Internal Corporate Governance Management Control, Internal Control (...)
|
|
|
|
|
| |
|
|
Levers of Control Categorization Understanding Simon's Contribution to Management Science (...)
|
|
|
|
|
| |
|
|
Additional Questions to Manage the Tension Between (Value) Creation and Control Management Control (...)
|
|
|
|
|
| |
|
|
|
Information Sources about Levers of Control
|
|
|
Here you will find powerpoints, videos, news, etc.
|
|
Managing Risks Through Internal Controls Internal Controls, Risk Management (...)
|
|
|
|
| |
|
|
Controlling as a Management Function Controlling, Management Control (...)
|
|
|
|
| |
|
|
Compare with The Levers of Control:
Parenting Styles |
Parenting Advantage |
Core Competence |
Levers of Control |
Growth Phases |
Distinctive Capabilities |
Organizational Configurations
| 3C's |
Acquisition
Integration Approaches |
Organization Chart |
Strategic Management
Return to Management Hub: Change & Organization | Communication & Skills | Ethics & Responsibility | Leadership
More Management Methods, Models and Theory
|
|
|
Special Interest Group Leader
|
|
|
|
|
|
|
|
