By Robert Simons
In keeping with a ten-year exam of keep watch over platforms in over 50 U.S. companies, this booklet broadens the definition of keep an eye on and establishes a serious bridge among the disciplines of procedure and accounting and regulate. as well as the extra conventional diagnostic regulate structures, Simons identifies 3 new regulate structures that let strategic switch: trust platforms that converse center values and supply idea and course, boundary structures that body the strategic area and outline the bounds of freedom, and interactive platforms that supply flexibility in adapting to aggressive environments and inspire organizational studying. those 4 regulate structures, based on Simons, will supply managers with the elemental levers for pursuing strategic pursuits.
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Additional resources for Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal
7. You shall not commit adultery. 8. You shall not steal. 9. You shall not bear false witness against your neighbor. 10. You shall not covet anything that is your neighbor's. These rules establish clear limits on behavior. 3 illustrates how a beliefs system and related boundary system work in tandem. The beliefs system provides organizational purpose and momentum to guide and motivate individual opportunity seeking within unlimited opportunity space. Within the beliefs system, boundary systems communicate the acceptable domain for search activity and thereby demarcate the opportunity domain as a subset of opportunity space within which organizational participants can exercise their energies.
Instead, most organizations punish individuals who act in defiance of stated policies or accepted standards of behavior. Like other norms of behavior, boundary systems cannot be effective without credible sanctions (Coleman 1990, chs. 10, 11).
Control implies managing the inherent tension between creative innovation, on the one hand, and predictable goal achievement, on the other, so that both are transformed into profitable growth. Effective control of strategy requires both the freedom to innovate and the assurance that individuals are working productively toward predefined goals. Beliefs systems, boundary systems, diagnostic control systems, and interactive control systems are the four basic levers used to manage this tension. The four levers are nested, and each offers some measure of guidance to the strategy process.