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In his book "Levers
of Control: How Managers Use Innovative Control Systems to Drive Strategic
Renewal" (1995) Robert Simons introduced the four levers of control
framework, giving managers in large companies a framework to manage
the tension between (value) creation and control (managing and measuring
value).
The four levers
of control are:
-
Core Values (controlled by
Belief Systems, such as
mission statements, vision statements, credos and statements of purpose)
-
Risks to be Avoided
(controlled by Boundary Systems,
such as codes of conduct, predefined strategic planning methods, asset
acquisition regulations, operational guidelines)
-
Strategic Uncertainties
(controlled by Interactive
Control Systems, such as incorporating process data into management
interaction, face-to-face meetings with employees, challenging data,
assumptions and action plans of subordinates)
-
Critical Performance
Variables (controlled by Diagnostic
Control Systems, such as output measurement, valuation standards,
incentive systems and compensation systems)
Compare with The Levers of Control: Parenting
Styles | Parenting
Advantage | Prahalad
|
Levers of Control |
Greiner
|
Kay |
Mintzberg
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3C's |
M&A
More management models
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